Here’s something every fundraiser should know: You have the opportunity to unlock a massive pool of untapped donor dollars that are just waiting to fuel good causes like yours.
Donor-advised funds (DAFs) are a rapidly growing source of charitable giving, but many nonprofits still struggle to identify supporters who have DAFs, or don’t fully understand how DAFs work themselves, making it hard to guide donors with confidence. But good news — if you’re reading this, you’re officially on your way to leveraging the upcoming DAF Day on October 9. Consider this moment a chance to learn, share information with your audiences, and capitalize on this stream of giving.
Here’s everything you need to know about DAFs and how to start incorporating this revenue stream into your fundraising program.
The ABCs on DAFs
A DAF is a charitable investment account often accessed through a sponsoring organization such as a community foundation or financial services company. Donors contribute to their fund, and then, when they’re ready to give, they recommend charities that then receive a grant from the DAF. For donors, DAFs offer some big advantages:
- Instant tax benefits: Donors can deduct their contributions in the same year they contribute to their DAF, even if the money has not yet been given to the charity of their choosing.
- Contribution options: DAFs can accept a range of assets, from cash to stocks and even real estate.
- Simplified giving: No administrative headaches or complex paperwork that often come with setting up a foundation.
Here’s why DAFs matter for you: There are millions of DAF accounts in the U.S., but a lot of that money is sitting on the sidelines. Donors want to give but aren’t always asked to do so in ways that feel timely, relevant, or personal to them. This is likely because many nonprofits don’t know how or when to communicate with their donors about DAFs, or even which donors have DAFs in the first place.
What DAF donors are saying
According to a recent study from the Donor Advised Fund Research Collaborative (DAFRC), more than half (56%) of DAF donors say charities they care about don’t ask them to give in meaningful ways. At the same time, only 49% of DAF donors surveyed report always or almost always being acknowledged for DAF grants.
This is a missed opportunity, but it’s also a chance to engage donors on a deeper level.
Many individuals with DAFs often have significant giving capacity, but they need to feel connected to the cause and have a clear understanding of how to give. To unlock this opportunity, nonprofits must first identify which supporters are likely to have DAFs, then build tailored outreach and stronger relationships that make it easy for them to act.
DAF Day is a great opportunity to begin educating your community about the power of giving through DAFs, identifying donors who have DAFs (and more potential to give!), and building relationships with prospective DAF donors.
Getting ready for DAF Day (and beyond)
DAF Day launched in 2024 as a joint effort among non-profit organizations, DAF providers, and fundraising platforms to raise awareness and drive increased use of donor-advised funds. It’s a timely moment to spotlight your organization’s relationship to DAF giving, especially as donors are hearing about it from every direction: advisors, platforms, and other nonprofits.
Last year, several Blue State clients participated in DAF Day and encouraged giving among high-potential audiences. Those who invested in clear, accessible content with targeted, cross-channel visibility saw especially strong engagement. Tactics included:
- Driving supporters to a dedicated web page featuring an educational explainer video
- Creating email and social content that helped supporters start their DAF giving journey
- Placing strategic paid media across digital and print channels to broaden awareness among mid-to-high capacity donors.
These efforts led to a significant increase in traffic to DAF-specific web pages, particularly among audiences already primed for higher-dollar giving. While DAF Day may not result in an immediate surge of gifts, it’s an important strategic starting point. Much like Giving Tuesday in its early days, it’s still gaining traction, but it’s full of long-term potential.
And this knowledge sharing doesn’t have to stop at DAF Day. Educational assets like explainer videos or enhanced ‘Ways To Give’ pages are valuable well beyond the campaign window, creating on-ramps for DAF-curious donors. They also reinforce trust with high-capacity donors who may just need a reminder, serving as evergreen resources throughout the year.
What’s next?
Visit DAFDay.com for inspiration and practical tools to help you engage your donor community on October 9. You’ll find webinars, case studies, social media posts, and other resources designed to make it easy to uplift DAFs in a timely, relevant way.
Remember, DAF Day is just the beginning. To keep DAFs part of the conversation year-round, make sure they are highlighted on donation pages, integrated into major giving moments like Giving Tuesday, and part of your targeted outreach to donors most likely to have a DAF.
Looking for more insights from our DAF experienced teams? Reach out to start a conversation about your strategy for reaching the right DAF donors with the right message on DAF Day and beyond.