by Barbara Barron | Posted June 5th, 2025 | Subscribe to this newsletter
With all the chatter about the rise in giving through Donor-Advised Funds (DAFs) and the controversy about how much money has been contributed and is sitting idle (and not being distributed to charities as intended), I decided to do some snooping of my own.
I did a little inventory, clicking around on the giving pages of 25 of my current and former client schools’ websites. I was looking to see who lists “Donor Advised Funds” as a way to give on the main giving pages — or anywhere, frankly.
Shockingly, only half did.
Then I looked through the sites of several well-established and respected schools’ sites. (You’d know the names.)
Again, only about half of them list this vital giving method.
This is one of those problems you may not even see as a problem. But the easy fix in solving it may well result in far more gifts and larger gifts than you expect. Plus, a path revealed toward potential major or transformative gifts. Wanna hear more?
Here’s the data:
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DAF giving is big and getting bigger
As of 2025, there is $250 billion in donor-advised funds in the US.
That represents 15% of all US giving. So, it’s a staggering figure.
That money – and commit this phrase to memory – is “ready to go funds.” Meaning they have already left the hands of the donor, earmarked for charitable giving and only charitable giving.
They can’t be taken back. They can be given to a charity, or they can sit in the fund.
But those are the only two options.
Moreover, the number of grants given increases each year along with the average gift amount (now around $4000). This is partly because more people have created DAFs (not just the uber-wealthy anymore so it’s all less mysterious).
It is very likely that there are members of your community who have DAFs, and you don’t know about it. In fact, this is the chief concern fundraisers express about DAF giving: they don’t know who has one and how to talk about directing grants from them.
Really? I don’t buy that last bit. I have too much faith in development pros. Don’t we all know that the only way to receive a gift is to ask for it? It follows that the only way to find out a family has a DAF is to ask them. It needs to be part of your cultivation process to learn about those donors’ giving tendencies and priorities.
But if the identification of DAF donors is a hurdle, let’s also make it easy for them to self-identify!
Getting started with DAF
Where is the posting of giving through DAFs on your website? Where is it in your solicitation materials, emails, letters, brochures? It ought to be prominently displayed on the giving page, not only the Ways to Give sub-page. And pair it with a testimonial from someone who gives this way about why they did.
Make it visible and simple.
Looking for prospects to kick this off? Start with your current Board of Trustees. Many of them fit the profile of the majority (but, again, not the only, anymore) DAFs donors. Next, how about former Board members?
It is imperative that – if you are new to this – you educate yourself and the team about DAFs. There are restrictions on the solicitation and use of the grants. There are also requirements for how the gifts are recorded and acknowledged. But it’s so worth the time to learn about this rich vein of giving. Again, it’s already earmarked for charity. Why not your school?
Need a resource? Try this:
A hedge against the downturn
Here’s one more aspect of DAF giving that I found particularly relevant at this moment of near-constant economic ups and downs.
Many view DAF giving as an excellent hedge against possible economic downturn.
Think about it: if a family is reluctant to make a cash gift now or at any point, they can instead direct a grant from their DAF without feeling it in their cash flow. Maybe even a larger gift than is typical for them. And recurring gifts through DAFs are also an option. Imagine 12 gifts per year instead of one.
This naturally leads us to think about DAF donors as potential major gift donors or, at the right time, more significant supporters of a capital campaign. Getting to know these families in this way provides us with an opening to talk about smart giving since we know that non-cash gifts tend to be larger.
And lest I stray from what my readers know is a subject I hold dear – the stewardship opportunities abound with gifts from DAFs. Because many DAF givers tend to be very intentional in their giving choices and may be clearer in the directing of grants vs. cash givers who often just “mail it in” in response to our appeals, you’re going to learn more about what they care about. You are then able to share the impact of their grants on the school and tie a direct line to mission.
That’s a generalization for sure. But there’s truth in it as well.
In creating more compelling stewardship for these good people, you may find yourself inspired to make your stewardship of all donors more robust and heartfelt.
Go for it! And as always, thank you for all you’re doing.
Barbara Barron
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BARBARA BARRON is one of the most respected and highly sought-after independent advancement professionals in the country, having worked with dozens of schools in every corner of the United States.
She has raised over $20 million for schools where she served as the Director of Development. Barbara is a New York Times bestselling author, speaker, and presenter who currently advises dozens of schools in various capacities. She is considered a thought leader in the world of advancement, with her writing widely shared by professionals in development offices worldwide.
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