DAFS are the new donor vertical that non-profits need to learn, study and develop their cultivation strategy.

Donor advised funds are no longer a secondary giving option. They are one of the fastest growing vehicles in philanthropy, yet many nonprofits still lack a deliberate strategy to identify, cultivate, and steward DAF holders.

The most recent comprehensive data from the DAF Research Collaborative shows 3.59 million DAF accounts managed by 1,512 sponsors. Those accounts held $327.87 billion in assets, an increase of roughly 30 percent year over year. Contributions reached $90.57 billion, while grants to charities reached a record $64.60 billion.

This is not simply a fundraising opportunity. It is a long term capital opportunity.

THE PAYOUT RATE CHANGES THE CONVERSATION

DAFs distributed 25.2 percent of eligible assets, far above the five percent annual requirement for private foundations. DAFgiving360 donors also surpassed $10 billion in grants during one fiscal year for the first time.

Mitch Stein, head of strategy at Chariot, explained the opportunity clearly:

“Because there’s typically a lot of need when there is any kind of economic downturn, and be-

cause the money is already earmarked for charity, people are motivated to put that money to

work.”

DAFs can function as a philanthropic rainy day fund. Organizations should not wait for a crisis or a December appeal to access them.

ANONYMITY REQUIRES BETTER DATA

Some DAF grants arrive without the donor’s name. That does not mean the relationship is inaccessible.

We can use wealth screening, giving patterns, donor research, and thoughtful discovery questions to identify likely DAF holders. We can also make DAF instructions visible on our websites, donation pages, annual reports, and major gift materials.

TREAT DAF DONORS AS INVESTORS

A DAF donor is not merely making a year-end transaction. This donor has already designated assets for charitable purposes and may be considering immediate grants, recurring support, appreciated securities, or a successor beneficiary.

Dwayne Ashley, CEO of Bridge Philanthropic Consulting, positions DAF planning as part of a broader capital strategy that can strengthen revenue diversification, endowment growth, and long-term institutional sustainability. As he writes, “The capital is available. The question is whether your organization has the strategy, relationships, and the will to access it. Go for it!”

BUILD THE PIPELINE ALL YEAR

Meet with community foundations and national sponsoring institutions throughout the year. Invite them to program briefings. Share measurable outcomes. Make introductions easy. Train development officers to discuss DAFs alongside major gifts, planned giving, and endowment conversations.

The context demands action. Giving USA 2026 reported $617.2 billion in total giving, bequests upcnearly 20 percent, and corporate giving growing only 0.5 percent after inflation. DAFs and appreciated assets therefore belong inside every serious revenue resilience plan.

BOARDS MUST ASK BETTER QUESTIONS

Does our board understand where capital is held? Do we track potential DAF relationships? Are we cultivating sponsoring institutions? Can our endowment and community programs receive long-term support?

At Bridge Philanthropic Consulting, we help nonprofit leaders answer these questions and build practical capital systems. Visit Bridge Philanthropic Consulting to begin a conversation.

The takeaway is simple. DAFs are not a December tactic. They are a pathway to stronger relationships, durable revenue, and lasting institutional capacity.

BPC adheres to the highest ethical standards in its work as a member of the Association of Fundraising Professionals, the Association of African-American Development Officers, and the Giving Institute.