The first-ever DAF Day is coming up on October 10. Do you know how to tap into donor-advised fund (DAF) giving, an increasingly popular way to give, including among younger donors? Here’s what you need to know about the way DAF giving works, the benefits and challenges to donors and recipients, and how nonprofits can take advantage of their growth.

The Basics: What Is a DAF? How Do They Work?

A DAF is a charitable fund set up by the donor to be managed by an investor at a community foundation or investment firm. These articles outline the benefits and mechanics of giving through a DAF and how nonprofits can get on a DAF donor’s radar.

The ABCs of DAFs: What is a donor-advised fund? The first of this two-part introduction explains the benefits of giving through a DAF instead of starting a foundation or donating directly to charities. A DAF enables donors to give to the causes and charities they support “without putting in a lot of work”—while receiving up-front tax deductions.

The ABCs of DAFs: How to tap into donor-advised funds. Given that most DAFs aren’t set up to receive grant proposals, how can nonprofits make sure DAF donors and managers can find them? Suggestions include keeping your Candid nonprofit profiles updated and making a broad appeal to existing supporters, many of whom may have DAF accounts.

The Trends: What Does the Data Say About DAF Giving?

According to recent research, DAFs are the fastest-growing giving method in the United States, with annual grantmaking increasing 600% over the last decade to $52.2 billion in 2022. The articles below explore data on the growth in DAF giving.

5 takeaways from the 2024 DAF Fundraising Report. Based on 2019-23 data, this report found that nonprofit revenue from DAF gifts grew significantly faster than non-DAF revenue. Read about how growth in the number of DAF donors, average gift size, and retention rates all outpaced those of non-DAF donors and how existing supporters gave even more when they switched to DAFs.

Community foundations: Donor-advised fund grants outpaced contributions in 2022. Many community foundations sponsor DAFs, and this year’s CF Insights survey from the Council on Foundations shows DAFs have become a significant part of their portfolios. Dig into data also showing how, despite lower investment returns in 2022, total DAF grant dollars increased significantly.

Read the full article about donor-advised fund giving by Kyoko Uchida at Candid.