What Donor-Advised Funds (DAFs) Mean for Donors
- Mitch Stein
- Aug 21
- 4 min read
Most of us want to give more than we do. The challenge is time, planning, and sometimes the worry that our dollars won’t have the impact we hope. A Donor-Advised Fund (DAF) can change that—giving you a simple tool to plan ahead, give more freely, and feel confident about your generosity.
That’s why we recently brought together a panel of experts to talk about how DAFs work and how donors are using them to transform their giving. The conversation featured:
Nicole Medeiros, SVP, Client Relationship Team Lead at BNY Wealth
Becky MacDonald, Wealth Advisor at Ashton Thomas Private Wealth
Sharon Bean, Senior Director of Planned Giving at the International Rescue Committee
Michele Sommer, CFO at Pan-Mass Challenge
Moderated by: Mitch Stein, Head of Strategy at Chariot
Together, they explored: what DAFs are, why they matter, and how donors at every level—from casual givers to multi-generational families—are using them to give with more ease, impact, and joy.
What is a DAF?
Think of a DAF as a giving account just for your philanthropy. You make contributions—cash, stock, or other assets—receive an immediate tax benefit, and then recommend grants to many nonprofits over time.
As Sharon Bean put it, “A donor-advised fund is a charitable piggy bank that brings coordination and intentionality to your giving.” It’s there when inspiration strikes, and it grows when you have time to plan.
Unlike one-off check writing or credit card gifts, a DAF makes it possible to:
Easily see all your giving in one place
Pre-commit funds so you’re more likely to follow through
Potentially grow your charitable dollars tax-free before granting them out
For a simple primer and guide to DAF selection, check out the donor resources on the DAF Day site.
Why Donors Love DAFs
DAFs aren’t just convenient—they’re changing how people feel about giving.
Simplicity: “It’s all in one place—you can see every organization you’ve supported, and that makes giving simpler and more intentional,” said Michele Sommer.
Confidence: Knowing your money is already set aside for charity makes it easier to say “yes” when a friend asks for support or when a crisis hits.
Family connection: “DAFs make it easy for families to come together and talk about their philanthropy,” noted Nicole Medeiros.
Identity: “DAFs help people see themselves as philanthropists, even if they’re giving a few thousand dollars or less a year,” added Becky MacDonald.
When the logistics are simple, giving stops feeling like a chore and starts feeling like what it should be—joyful, empowering, and deeply personal.
Who Uses DAFs?
DAF donors aren’t one-size-fits-all. In fact, most fall into one of three giving styles:
The Organizer: Uses a DAF to keep giving organized and stay accountable to donation goals, even if they’re giving modest amounts.
The Optimizer: Contributes larger sums strategically—often appreciated stock or assets—to maximize tax benefits, then grants steadily over a few years.
The Builder: Treats the DAF like a simplified alternative to a family foundation, often after an inheritance or financial windfall, using it for long-term, multi-generational giving.
No matter where you are in your giving journey, there’s space for you to see your own goals in the wide spectrum of DAF donors.
How to Use a DAF
Getting started is easier than most people expect.
Open an account with a provider (like a community foundation, national sponsor, or your financial institution).
Fund it with cash, stock, or other assets. Contributions are irrevocable, which is what secures your charitable tax benefit.
Invest it in one of the options offered. Growth stays in your account tax-free, increasing your future giving potential.
Grant it out anytime to eligible nonprofits. Many nonprofits now even feature a “DAF Pay” button on their donation forms, campaign pages or websites –making it as easy to use your DAF as using Apple Pay.
And while there are a few restrictions—you can’t use DAF dollars for anything that benefits you personally, like gala tickets—most donors find them incredibly flexible and simple.
Why It Matters Now
The scale of giving through DAFs is remarkable - driven by more accessible options for any donors. Sharon mentioned that the International Rescue Committee has seen 30% of their support from individuals so far this year come through DAFs. Michele shared that Pan-Mass Challenge has grown their DAF support from $1 million in 2012 to over $11 million so far this year, making up 18% of their fundraising.
What that means for you is simple: if you want your giving to be impactful, timely, and easy, this is one of the most effective ways to do it.
“It gives you freedom to give. You know you can’t use the money for anything else, so it becomes a source of joy and empowerment.” -Michele Sommer
Getting a DAF
If you think a DAF might be a good fit for you, here a few helpful next steps:
Download the “Get a DAF Guide” for in-depth guidance on how to assess the many DAF options.
Discuss with your professional advisors.
Act before DAF Day!
DAF Day: October 9th
If you already have a DAF—or if you’ve been curious about opening one—there’s no better time to take action than DAF Day on October 9th.
DAF day is a national holiday for donors and nonprofits to get more from giving—with DAFs. It’s a celebration of generosity, a reminder to use what you’ve set aside, and an invitation to make giving joyful and visible.
How you can get involved:
Set up your DAF before October 9th so you can fully participate.
Encourage your favorite nonprofits to highlight DAF giving on their websites and participate in DAF day.
Make a plan to make sure you don’t miss out on DAF Day. Mark your calendar, think about organizations to support and encourage your friends and family.
Give together on October 9th. You can support any DAF-eligible organization directly through the DAF Day Giving Page via DAFpay as well for the easiest way to give.
By giving on DAF Day, you’re not only supporting the causes you love—you’re joining a movement to unlock the true potential of donor-advised funds.
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The main benefits of using a DAF include simplifying giving, providing tax benefits, and allowing charitable money to grow tax-free. The classification of DAF donors into “Organizers,” “Optimizers,” and “Builders” is particularly effective. google doodle baseball
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