What Nonprofits Get Wrong About Donor-Advised Funds
Donor-advised funds are one of the fastest-growing forces in philanthropy, and one of the most misunderstood by the organizations they could benefit most. Too many nonprofits treat a DAF as a payment method, a slightly unusual way a check arrives. That misunderstanding quietly costs them relationships, repeat gifts, and a whole category of committed donors.
Here's the shift in thinking that changes everything, and what to do about it.
A DAF Is a Relationship, Not a Payment Method
Start here, because everything else follows from it. When a gift comes in through a donor-advised fund, it's easy to see the sponsoring organization, a community foundation, Fidelity Charitable, Schwab Charitable, as the donor. It isn't. The real donor is the person who set up that fund, chose to give money to it, and then directed a gift to you.
That distinction matters enormously. A person with a DAF has already made a decision most people never make: they've set aside money specifically for charitable giving. They are, by definition, a committed philanthropist. Treating their gift as a faceless transaction from a financial institution means missing the most giving-ready donor you may ever meet.
Your DAF Donors Are Often Already in Your Database
Here's the part that surprises people. Many of your DAF donors aren't strangers. They're existing supporters who simply changed how they give. Someone who gave you $500 by check last year might give through a DAF this year, and if your systems record that as a gift from "Fidelity Charitable" rather than from a named person, you've just lost track of a loyal donor.
Take the time to connect DAF gifts back to the individuals behind them. Cross-reference the fund advisor's name against your existing records. You'll often find these aren't new, anonymous dollars, they're people you already know, giving in a new way, and quietly signaling they have more capacity than their old gift size suggested.
Say Thank You to the Person, Not the Fund
Because the sponsoring organization handles the paperwork, DAF donors often get thanked poorly, or not at all. The gift arrives, the receipt goes to the fund, and the actual human who directed the money never hears from you. That's a missed relationship with someone who just told you, with their dollars, that they believe in your work.
Whenever you can identify the person behind a DAF gift, thank them directly and personally, the same way you'd thank any meaningful donor. A DAF gift is not a lesser gift. If anything, it's a stronger indicator of commitment, and it deserves your best stewardship, not your automated receipt.
Make It Easy to Give This Way
If DAF donors are among your most committed supporters, make sure your organization is easy to give to through a fund. Include your legal name and tax ID where donors can find them. Add a simple line to your donation page letting people know they can give through a donor-advised fund. Mention it in conversations with major donors, many high-capacity givers use DAFs and appreciate an organization that understands them. Removing small points of friction can turn a possible gift into a completed one.
Think Long-Term, Because DAF Donors Do
People who give through DAFs tend to be planful, they've thought ahead about their giving. That makes them ideal candidates for multiyear support, larger future gifts, and even legacy giving. The organization that builds a genuine relationship with a DAF donor now is positioning itself for years of support, not a single transaction. Treat the first DAF gift as the beginning of a relationship, not the end of one.
A donor-advised fund is not a quirk of accounting.
It's a person who has committed money to charitable giving and chosen, at least once, to direct it to you. Nonprofits that recognize that, and steward those donors like the committed philanthropists they are, unlock a category of support most organizations leave sitting on the table. The gift didn't come from a fund. It came from someone who believes in your work. Treat them that way.
If you'd like help building donor-advised funds into your fundraising strategy, we'd love to talk. Access Philanthropy advisors offer free 30-minute conversations, no forms and no pressure. Reach out at hello@accessphilanthropy.com or complete the form.
