There Is Over $250 Billion Sitting in Donor Advised Funds. Is Your Nonprofit Building Relationships With the People Who Hold It?
If you have not been paying close attention to donor advised funds lately, now is the time to start.
Donor-advised funds, commonly known as DAFs, have quietly become one of the most significant forces in charitable giving across North America. In the United States alone, over $250 billion is currently sitting in these accounts waiting to be distributed to charitable organizations. In Canada, DAFs are growing rapidly through foundations like Charitable Impact and other community foundations that administer them on behalf of donors.
That is an extraordinary amount of money. And most nonprofits are not actively positioned to receive it.
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 tend to give more than average donors, give more consistently, and are often looking for organizations that align deeply with their values.
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 organizations like Charitable Impact, Vancouver Foundation, and the Calgary Foundation are major DAF administrators. In the US, Fidelity Charitable, Schwab Charitable, and local community foundations hold enormous amounts of DAF assets. Introducing your organization and staying visible to these institutions matters.
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
Philanthropic giving is expected to rebound modestly in 2026 but growth will be uneven. In that environment, 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.
