Donor-advised funds (DAFs) are changing the way philanthropy happens—making giving faster, more flexible, and more strategic. In recent years, DAFs have become one of the most widely used vehicles for charitable giving, allowing donors to make tax-deductible contributions to a public charity and then recommend grants to the nonprofits they care about most.
This model offers donors both immediacy and intentionality: they can contribute assets when it makes financial sense and distribute those funds when needs arise. For nonprofits, DAFs represent a growing channel for sustained, values-driven support.
“When I consider donor-advised funds, I imagine new opportunity,” says Elizabeth Abel, Senior Vice President at CCS Fundraising, “an opportunity to connect donor intent with impact, to turn long-term planning into immediate generosity.”
Donor-Advised Funds: Growth, Debate, and Opportunity
Early in 2025, several major studies—including the 2025 DAFgiving360 Giving Report [2], the 2025 FreeWill Donor-Advised Fund Report [3], and the Independent Report on DAFs (IPS, 2025) [4]—confirmed that DAFs remain one of the fastest-growing and most debated tools in philanthropy. Together, these reports highlight the increasing prevalence, unique benefits, and ongoing questions about DAFs.
Abel notes, “The data confirm what we see in practice: DAFs are not only expanding in scale but also changing how nonprofits engage major donors and integrate a range of giving vehicles into their gift request strategies.”
The Expanding Scale of Donor-Advised Funds
In recent years, donor-advised funds have evolved from a niche vehicle into one of the most powerful forces in philanthropy. In 2019, National Philanthropic Trust reported $27.4 billion in grants, $38.8 billion in contributions, and nearly 874,000 accounts; already more than triple the 2015 total [5]. Since 2019, growth has accelerated. By 2023, charitable assets in DAFs nearly doubled to $251.5 billion, even as contributions declined by 21.7% and grants dipped by 1.4% in response to economic conditions [6].
Abel advises, “Many nonprofit leaders recognize that these shifts influence strategy and timing for major donor engagement. DAFs are not just a funding mechanism,” she continues. “They are a strategic tool for building relationships, advancing missions, and empowering donors to create immediate and long-lasting impact.”
DAFs in Times of Crisis
DAFs have become a highly responsive method of giving in times of crisis. During the first months of the COVID-19 pandemic, grantmaking rose nearly 30% year-over-year [7]:
- $8.32 billion was granted in the first half of 2020, compared with $6.41 billion in the same period in 2019 [7].
- The number of grants surged by 37%, from 945,000 to nearly 1.3 million [7].
That pattern has continued. In 2025, DAF donors directed $148 million to disaster relief, supporting humanitarian crises abroad and natural disasters in the U.S. [2].
“DAFs allow donors to act quickly when urgent needs arise, giving nonprofits financial resources for immediate results without sacrificing long-term planning,” Abel says.
Donor-Advised Funds: Opportunity and Debate
The opportunities DAFs present are undeniable: they allow donors to give strategically, offer flexibility in timing, and enable contributions of assets beyond cash [1]. Nonprofits increasingly see DAFs as an essential fundraising channel, with many reporting that donors who shift to DAF giving often increase their overall generosity—sometimes doubling their annual giving [10].
Yet the debates about transparency and payout rates have sharpened. The 2025 IPS Independent Report on DAFs found that median payout rates remain around 9–10%, well above the 5% required for private foundations, but because there is no mandated minimum for DAFs, critics warn of “warehoused” charitable dollars [4].
Abel emphasizes, “The debate isn’t about whether DAFs are effective. It’s about how nonprofits and policymakers can ensure funds are deployed responsibly while honoring donor intent.”
Concerns also persist about foundation-to-DAF transfers, estimated at more than $3 billion annually, which can make it harder to see where donations actually go, and can make it less clear whether foundations are really giving out as much as they are supposed to [4].
With DAF assets exceeding $250 billion in 2023 [6] and widely expected to approach $300 billion by the late 2020s, the conversation is evolving. Policymakers, nonprofits, and sponsors are navigating how to balance donor flexibility with public benefit and transparency [4] [6].
#HalfMyDAF and the Rise of Proactive Giving
All eyes turned to DAFs in 2020 with the launch of #HalfMyDAF, a matching challenge created by philanthropists Jennifer and David Risher to inspire donors to give sooner rather than later [8]. In just five months, the campaign mobilized $8.6 million in DAF grants with $1.4 million in matching funds [8]. Relaunched in 2021 with a $20 million goal, the initiative became a touchstone for how urgency-driven campaigns could unlock charitable dollars sitting on the sidelines [8].
Years later, #HalfMyDAF has had a sustained effect. By 2025, nearly 40% of all DAF distributions are recurring or scheduled, showing donors’ growing commitment to proactive, sustained giving [2].
Abel notes, “Campaigns like #HalfMyDAF are a reminder that nonprofits can inspire donors to act now, while still supporting long-term goals.”
How to Attract More Donor-Advised Fund Gifts
How can nonprofit leaders translate these insights into action? Abel recommends three practical ways to build a stronger culture of giving through DAFs:
One: Make DAFs part of the donor dialogue. Normalize DAFs in conversations. Many supporters don’t realize that their retirement assets, appreciated stock, or even crypto can be donated through a DAF [1]. Try asking: “Many of our supporters give through a DAF. Would you like to explore how your DAF can be a tool for sustained impact on our community?”
Two: Make it seamless to give through a DAF. Donors expect ease. By 2025, many organizations feature a “Give via DAF” button on their websites through third-party integrations [3]. Highlight DAF eligibility in appeals and employer matching campaigns. For example: “Send a check or recommend a grant from your DAF. Double the impact with an employer match.” Technology is also expanding access. Platforms like GoFundMe’s Giving Funds (launched 2025) are making DAF-style giving available to everyday donors, not just the ultra-wealthy [9]. Nonprofits that openly market their readiness to accept DAF gifts will have an edge.
Three: Demonstrate the importance of DAF grants today. Donors want to see how their gifts make an impact. Share examples of how DAF grants helped scale a program, respond to a crisis, or invest in critically needed infrastructure. Use personal donor stories to inspire and create urgency. For example: “Your DAF grant equips us with the resources to meet this challenge head-on.”
Looking Ahead: The Future of Donor-Advised Funds
As DAFs continue to grow and technology makes them more accessible, we can expect grantmaking to charitable organizations to expand steadily. The conversation is no longer about whether DAFs matter; they are now central to the future of philanthropy.
This growing influence was on full display during DAF Day 2025, when several organizations across sectors experienced remarkable increases in giving through donor-advised funds [11].
“DAFs are influencing the continued evolution of charitable giving,” Abel reflects. “They demonstrate how strategic, donor-aligned philanthropy can fuel long-term solutions while meeting urgent needs. They are a reminder that the future of philanthropy must be both visionary and responsive.”
Originally published in February 2021.
References
[1] National Philanthropic Trust, What Is a Donor-Advised Fund? (2025).
[2] DAFgiving360, Giving Report 2025 (2025).
[3] FreeWill, Donor-Advised Fund Report 2025 (2025).
[4] Institute for Policy Studies, Charity Reform Initiative, Independent Report on Donor-Advised Funds (April 2025).
[5] National Philanthropic Trust, 2020 Donor-Advised Fund Report (February 2021).
[7] National Philanthropic Trust, Donor-Advised Fund COVID Grantmaking Survey (February 2021).
[8] #HalfMyDAF, Campaign Reports (2020–2021).
[10] Chariot and K2D Strategies, DAF Fundraising Report 2025 (2025).
[11] Was DAF Day A Success? That Depends On How You Measure, DAF Day (2025).
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