Donor Advised Funds Are One of the Biggest Fundraising Opportunities in North America. Is Your Nonprofit Positioned to Access Them?
If donor advised funds are not part of your fundraising conversation yet, they probably should be.
Across North America, donor advised funds, commonly known as DAFs, have become one of the fastest growing and most significant vehicles for charitable giving. In the United States, DAF assets reached $326 billion in 2024. In Canada, DAF assets rose to almost $10.5 billion by the end of 2023 and the sector has continued to grow since then, with major banks, mutual fund companies and community foundations all expanding their DAF offerings. On both sides of the border the trajectory is the same. More donors are choosing DAFs, more money is flowing through them, and the nonprofits that understand how to build relationships with DAF holders are seeing the results.
Most nonprofits are not there yet.
What a Donor Advised Fund Actually Is
A DAF is essentially a charitable giving account. A donor contributes money to the fund, receives an immediate tax deduction, and then recommends grants to the charitable organizations of their choosing over time. The fund is managed by a sponsoring organization, typically a community foundation or financial institution, and the donor advises where the money ultimately goes.
For donors it is a flexible, tax efficient way to give. For nonprofits it represents a significant and often overlooked funding opportunity. DAF donors made 23 times larger gifts than non-DAF donors on average in 2025 and DAF donor retention is on average 13 percentage points higher than that of non-DAF donors. These are often highly intentional, values driven supporters looking for organizations whose missions resonate deeply with them.
The catch is that accessing DAF dollars requires a different kind of relationship than traditional fundraising.
Why Most Nonprofits Are Missing Out
The challenge with DAFs is that the money does not move on its own. DAF holders have already made the decision to give. The funds are sitting there specifically designated for charitable use. But those holders need to actively recommend a grant to your organization before any of it reaches you.
That means if your nonprofit is not on a DAF holder's radar, you are invisible to that pool of funding entirely. And unlike a spontaneous donation prompted by a campaign or an event, DAF giving tends to be more deliberate and relationship driven.
Organizations that proactively build relationships with DAF holders, make it known that they accept DAF gifts, and communicate their impact clearly are the ones that get recommended. Organizations that do not are simply not part of the conversation.
What Nonprofits Can Do Right Now
The first step is making sure DAF donors know you accept DAF gifts. This sounds simple but many nonprofits do not mention it anywhere on their website or in their donor communications. Adding a clear line to your donation page and your donor outreach goes a long way.
The second step is building relationships with the community foundations and financial institutions in your area that administer DAFs. In Canada, more than half of registered charities received DAF grants or gifts in the past year, with organizations like Charitable Impact, Vancouver Foundation and Calgary Foundation among the major administrators. Major Canadian banks including RBC, TD, BMO and Scotiabank all operate DAF programs through affiliated foundations. In the US, Fidelity Charitable, Schwab Charitable and local community foundations hold enormous amounts of DAF assets. Getting to know the institutions administering these funds in your region matters more than most organizations realize.
The third step is storytelling. DAF holders are often thoughtful, values driven donors who want to see real impact before they recommend a grant. Clear, compelling impact reporting is one of the most effective tools your organization has for attracting this kind of giving.
The Opportunity Is Real on Both Sides of the Border
From 2022 to 2025 nonprofits reported 75% median growth in DAF revenue compared with just 12% in non-DAF revenue. In Canada, DAF giving is growing at a pace the sector has not seen before, with thousands of financial advisors now offering DAF access to their clients and community foundations playing an increasingly central role in directing that giving locally.
In an environment where funding is uneven and competition for donor dollars is intensifying, organizations that know where the money is and how to build relationships around it will have a meaningful advantage.
DAFs are one of the clearest opportunities in nonprofit fundraising right now. The funds exist. The donors want to give. The question is whether your organization is making it easy for them to choose you.
