Donor-Advised Funds: The $230B Opportunity Your Nonprofit is Missing

đź’ˇ The DAF Paradox
There’s $230 billion sitting in donor-advised funds (DAFs)—charitable "savings accounts" where money grows tax-free, waiting to be granted to nonprofits. Yet most fundraisers treat DAFs like a niche tool for the ultra-wealthy.

Spoiler: They’re wrong.

In my latest Purpose & Profit Club Podcast episode, Mitch Stein (Head of Strategy at Chariot) and I ripped open the playbook on how any nonprofit can tap into this funding goldmine—no six-figure donors required.

 3 DAF Truths That Change Everything

1. DAFs Aren’t Just for Billionaires

Myth: "Only rich people use DAFs."
Reality: Over 3M Americans have DAFs—including millennials and Gen Z.

  • Example: Mitch auto-donates $100/month to his DAF (matched by his employer). Now, when he gives, it’s from a pre-funded charitable wallet—no budget guilt, just impact.

  • Pro Tip: Your current donors already have DAFs. They’re just giving via credit card because it’s easier (for now).

*"DAF donors give 12x/year at $5k average. Your credit card donors? 2x at $200."* — Mitch Stein

2. Friction is Killing Your DAF Potential

Problem: Most DAF gifts require donors to:

  1. Log into their Fidelity/Vanguard account

  2. Manually look up your nonprofit

  3. Hope you connect the dots when the check arrives (spoiler: you won’t).

Solution: DAF Pay (like Chariot’s tool) lets donors give in 3 clicks from your website—no login chaos, no anonymous checks.

 Result: The Michael J. Fox Foundation saw 50% of new DAF donors reply to thank-you emails (vs. radio silence).

3. DAFs = Your Stealth Major Donor Pipeline

The Hack: DAF donors are 25x more valuable than credit card donors. But most nonprofits never ask.

Try This:

  • Add "Give from your DAF" to donation pages (with a link to your EIN).

  • Train staff to ask: "Do you have a donor-advised fund?" during major gift calls.

  • Email Script:
    "PS: Have a DAF? Your gift could go twice as far—[here’s how to give in 2 minutes]."

🚨 The Big Mistake

Thinking DAFs are "too complicated" or "only for big nonprofits." $230B doesn’t care about your budget size.

Your Homework:

  1. Audit: How many DAF gifts did you get last year? (Hint: Check for checks from "Fidelity Charitable" or "The Smith Family Fund.")

  2. Tech Check: Add DAF Pay to your website (Chariot, Daffy, or your CRM’s tool).

  3. Ask: Next week, tag 5 donors with: "P.S. You can give tax-free from your DAF ."

đź’¬ Your Turn
Which DAF tactic will you test first? Hit reply—I read every email.

Ready to turn DAFs into your #1 funding stream? Join the Purpose & Profit Club®—where bold nonprofits fundraise without burnout.

Christina Edwards