DAF giving is booming. Is your nonprofit ready to tap into it? Learn how donor-advised funds work and how to seamlessly accept DAF gifts with Donorbox.
Join the fundraising movement! Join the fundraising movement!Donor-advised funds (DAFs) are no longer a niche topic. In fact, they’re the fastest-growing vehicle for charitable giving in the U.S.
The 2025 Annual DAF Report found that 3.5 million American donors now have DAF accounts, and $65 billion in DAF donations were granted to nonprofits in 2024 alone.
If you’re a 501(c)(3) organization looking to elevate your fundraising while strengthening relationships with passionate donors, accepting DAF gifts is highly recommended.
In this article, I’ll share everything you need to know about donor-advised funds, and how your nonprofit can collect DAF gifts with Donorbox.
A donor-advised fund is a charitable giving account managed by a sponsoring 501(c)(3) organization, such as Fidelity Charitable, DAFgiving360, and Vanguard Charitable.
Donors receive an immediate tax deduction when contributing to the donor-advised fund, and can suggest who will receive the gift and when. If the donor doesn’t want to take an active role after that, they can step away and let the DAF sponsor take control.
Giving from DAFs grew from 10.3% of all U.S. charitable giving in 2020 to 15.3% by 2024. Revenue from DAFs also increased by 44% overall in 2025.
Chariot’s 2026 DAF Fundraising Report showed that the average size of DAF gifts was 23x larger than non-DAF gifts in 2025. That translates to average DAF gifts of $3,934, compared to $172 in non-DAF gifts.
Between 2021 and 2025, nearly half of the donors who switched to DAF giving more than doubled their annual giving. Where donor retention is concerned, DAF donors are loyal supporters, with the average retention rate being 13% higher than that of non-DAF donors.
And if you thought that DAFs are limited to ultra-wealthy donors giving over $25,000, rest assured that DAFs are used at all donor levels. Two-thirds of DAF gifts are under $1,000, and while DAFs accounted for more than 22% of major contributions in 2025, major gifts only made up 2% of total DAF donations.
DAFs represent charitable dollars that donors have already set aside to give to a cause they care about. But remember, while DAF donors are highly intentional, they still expect ease. By offering a frictionless giving experience, you have a strong opportunity to turn that intent into action.
Let’s look at the benefits of DAF giving for 501(c)(3) organizations and donors:
For nonprofits:
For donors:
Here are some limitations to donor-advised funds worth noting:
DAFs cannot:
Now, let’s look at how Donorbox streamlines the process of collecting DAF gifts.
U.S. 501(c)(3) organizations on Donorbox Pro and Premium plans can accept DAF gifts directly on Donorbox OmniGive™ Donation Forms.
Donorbox integrates with DAFpay by Chariot, allowing you to add DAFpay as a payment method on your form. Donors can recommend and submit grants from hundreds of donor-advised funds, representing over 85% of the market, in just a few clicks. All donor and donation details automatically sync to your Donorbox dashboard for effortless reporting and effective donor stewardship.
Once a donor selects their DAF provider, they can log in to their account, select a donation amount, and complete their gift – no manual portal logins outside your form.
Plus, DAF donations are automatically excluded from your donors’ year-end tax receipts, ensuring tax compliance while saving you hours of administrative work and reporting.
Here’s an example of an OmniGive form with DAFpay enabled:
Accept DAF Gifts with Donorbox
To offer a significantly faster one-click giving experience for donors on the first page of your donation form, enable UltraSwift™ Pay. See what this looks like below:
Processing fees: 4.5% (1.6% Donorbox platform fee + 2.9% Chariot fee)
Ready to get started? If you haven’t already, sign up for Donorbox Pro or Premium, then refer to this how-to guide to add this payment method to your form.
Once you receive your first DAF donation, you’ll receive a notification email from Donorbox with instructions to set up your Chariot account. You can proactively set up your Chariot Deposit Account here at any time.
When a DAF donation is initiated, Donorbox will send an email containing the donation details, and you’ll be able to view a record of the gift on both the Donations page and the Supporter’s profile within Donorbox almost immediately.
Once you set up a Chariot account and a DAF donation is received, you can initiate ACH transfers to your linked bank account at any time. For more information on getting set up, refer to this onboarding guide.
Note: If your Chariot Deposit Account remains unclaimed, you’ll receive a mailed paper check for the total DAF donations received every 60-90 days to the IRS address on file, unless your organization requests another mailing address. A check processing fee will apply.
Learn how to become more prepared, visible, and donor-centered when it comes to DAF giving. Fundraising expert Cara Auspurger unpacks it all in episode 192 of The Nonprofit Podcast:
Donors looking for ways to contribute significant amounts to more than one organization must choose between a DAF and starting a private foundation.
Here’s a table comparing DAFs and private foundations in more detail.
Private Foundation Donor-Advised Funds
Definition An independent legal 501(c)(3) tax-exempt nonprofit organization funded by a single individual, family, or corporation instead of the general public. A charitable giving account managed by a sponsoring 501(c)(3) organization.
How to start? Register a 501(c)(3) organization with the IRS and state. File a fund agreement form with the sponsoring organization.
Cost to start? Can take hundreds or even thousands of dollars in legal, IRS, and state filing fees. No setup costs.
Time to set up? Can take months. Can be set up in one day.
Additional fees? Yes. Potential additional legal, accounting, admin, and compliance costs may apply. Yes. Sponsoring organizations usually charge admin and/or investment fees.
Payout Rate? 8.1% 25.3%
Who controls donations, investments, and contributions to charities? Foundation staff and board members. Sponsoring organization. Donors can advise where to contribute gifts.
Are gifts tax deductible? Cash gifts are deductible up to 30% of the AGI, Stocks, and real-estate gifts are tax deductible up to 20% of AGI. Cash gifts are deductible up to 60% of AGI, Stocks, and property gifts are deductible up to 30% of AGI.
Are investments taxed? Generally subject to a 1.39% federal excise tax on net investment income. There is no excise tax on net investment income.
Contributions per year? Must use or distribute at least 5% of the previous year's investment assets. No required annual distributions.
Form 990 requirements? Must share all grants and board members on Form 990. No.
How long can they exist? Can exist for generations if properly maintained, and successors can also be named. Depends on the sponsor's rules. Many allow successor advisors or named charitable beneficiaries. Some transfer remaining assets to the sponsor after the advisory period ends.
Donor-advised funds are changing the way nonprofits like yours collect donations. Accepting DAF donations can accelerate your fundraising while strengthening relationships with these highly intentional donors.
Donorbox makes it easy for you to help donors move already-committed charitable funds toward your important cause with DAFpay on OmniGive donation forms. And you can raise even more when pairing it with Donorbox’s other online and in-person fundraising features.
A donor-advised fund (DAF) is a charitable giving account managed by a sponsoring 501(c)(3) organization. A donor’s contributions to a DAF are tax-deductible and grow tax-free.
501(c)(3) public charities registered with the Internal Revenue Service (IRS) are eligible to receive DAF donations.
DAFpay by Chariot allows donors to recommend and submit grants from hundreds of DAFs that represent 85%+ of the market directly through your OmniGive™ donation form. Your organization can receive contributions from major DAF providers like Fidelity Charitable, Daffy, local community foundations, and more on your Donorbox campaign forms.
If the DAF sponsor is one of Chariot’s grantmaker partners, the funds will arrive electronically in your Chariot Deposit Account*. Otherwise, the funds will arrive outside of Chariot through your standard grant payment channels.
*Chariot is a financial technology company, not a bank. Chariot Deposit Accounts are a Demand Deposit Account provided by Column N.A., Member FDIC.
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
Join the fundraising movement! Join the fundraising movement!
