Check out the second annual edition of the DAF Fundraising Report - the only large-scale and data-driven research done on the nonprofit experience with Donor Advised Funds (DAFs).
I. DAFs increased individual giving
Example: If a donor gave $250 to an organization in 2023 via credit card, and supported the same organization with their DAF for the first time in 2024, that first DAF gift was likely >$500. The average percentage change in support was +888%, as many “conversions” to DAF giving resulted in transformative gifts.
What you can do: Consider ways donors might be reminded of–and educated on–the benefits of DAF giving for your mission. This includes featuring DAFs as a giving option on donation forms, direct mail pieces, "Ways to Give" pages on websites and in donor testimonials in newsletters.
II. DAFs are used at all donor levels
Example: When plotting the distribution of all DAF gifts in the Report by size, 14% are <$100, 41% are <$250, 55% are <$500 and 69% are <$1,000.
What you can do: Emphasize DAF education across your organization to ensure that you’re maximizing DAF support within every channel and donor portfolio. Share this report across your team and encourage colleagues to join the frequent and free educational webinars hosted by Chariot on this topic.
III. DAF donors are loyal supporters
Example: For every 100 non-DAF donors in 2023, only 46 were retained as donors in 2024. For every 100 DAF donors in 2023, 59 were retained in 2024.
What you can do: Prioritize improvements to DAF donor data collection, internal review and stewardship to maximize retention among this high-value donor segment.
IV. DAFs remain the fastest-growing giving vehicle in philanthropy
Example: An organization at this median growth level had $129K in DAF support in 2023 and $168K in DAF support in 2024. Another organization on the upper end of the revenue spectrum grew DAF revenue by 104% to $1.8M in 2024 from $873K in 2023.
What you can do: Invest in your DAF strategy and maximize the tools available to you that help secure more DAF support.
V. DAF giving is becoming increasingly more significant for smaller nonprofits
Example: In 2020, DAF giving made up 10% of total revenue for extra-large organizations ($150M+ annual contributions) and 6% of total revenue for smaller organizations (<$10M annual contributions). By 2024, those numbers were 11% and 15%, respectively, representing a 10% increase for extra large organizations and a 143% increase for smaller organizations in the study.
What you can do: Share the findings and recommendations of this Report with peers at other organizations, especially if they aren’t large, established nonprofits.
