We are very pleased to have added DAFpay, powered by Chariot, to the growing list of payment methods on Give Lively donation forms. DAFpay on Give Lively enables donors to make grants to a nonprofit through their donor-advised fund (DAF) providers – a seamless giving flow.

In general, we are excited about DAF giving. As a source of capital used for philanthropic generosity, DAFs have already shown enormous promise, and both nonprofits and fundraising platforms are wise to tap into the opportunity offered.

The DAF disruption

DAFs have been around for about a century – the first one was established in 1931 – but they didn’t start their journey to modern popularity until after 2006, when Congress clarified the definition of a DAF and set regulations around their use.

These days, they’re increasingly omnipresent. The Annual DAF Report 2025 estimates that there were 3.5 million DAF accounts as of 2024 with assets of more than $326 billion and charitable grants that year totaling nearly $65 billion. That represented a significant increase from 10 years earlier – 4.6 times more assets, 3.3 times more grants and 15 times as many accounts.

As one measure of DAF popularity, a "DAF Day” was first celebrated on October 10, 2024, as a nationwide initiative to elevate DAF giving. More than 1,200 nonprofits and dozens of DAF providers and fundraising platforms worked together to promote DAF giving. A year later, on October 9, 2025, the second annual DAF Day saw an exponential increase in the number of participating nonprofits and DAF providers, but also more than $2 million in directly observable grants from over 1,000 gifts – a significant boost in giving volume with an average one-time grant amount well in excess of that of other donation methods. (DAF Day 2026 is on October 8.)

The benefits of a DAF

A donor-advised fund (DAF) is a charitable giving account to which donors contribute funds and receive an immediate tax deduction. Donors can then arrange grants from the DAF giving account to nonprofits in smaller amounts of their desire and over as much time as they like.

Although there are many reasons why DAF giving is more and more widespread, three drivers have proven to be the most prominent.

DAFs encourage greater giving

The upfront tax benefits allow donors to maximize savings, including when employers offer matching programs for DAFs. The subsequent ability to set giving goals and automate contributions allows for a shift in mindset from one-time donations to philanthropic investment. 

According to Chariot's DAF Fundraising Report 2025, more than half of 2023 donors that switched to DAF in 2024 more than doubled their giving, a +100% change in the median annual support to their chosen organizations and 888% increase in average support.

DAFs facilitate streamlined giving

DAF accounts are easily set up through an existing brokerage account, financial advisor or other providers. With low minimum contributing requirements, DAF accounts continue to be appealing and, as mentioned above, are now the fastest-growing form of philanthropy. According to the DAF Fundraising Report 2025, in 2024 participating nonprofits saw median DAF revenue growth of +30% in contrast with a median non-DAF change of -1%.

Ease of use also contributes to donor retention. The DAF Fundraising Report 2025 found that, on average, 59% of 2023 DAF donors gave again in 2024, versus 46% of non-DAF donors.

DAFs are for everyone

Data now shows that DAF giving is not only for the wealthy. The DAF Fundraising Report 2025 reveals that, in 2024, while over 20% of major gifts were DAF grants, only 1% of DAF grants were major gifts. In fact 14% were under $100 and 41% were under $250.

Relatedly, small nonprofits are receiving a larger piece of the DAF pie. As noted in the same report, from 2020 to 2024, small organizations saw a 143% growth in DAF grants as a percentage of total revenue compared to 10% for very large organizations.

The DAF opportunity

Given the fundraising upheavals of current times, nonprofits are looking to diversify revenue streams. DAF giving has a demonstrated history of growth and appears to show broad potential for ongoing expanded use. That is why we are proud to make it available as a payment method on Give Lively-powered donation forms and encourage nonprofits to take advantage of it.

Is DAF giving brand new to you and you want to learn more? Need information to pass along to donors about how to choose, create and provision a donor-advised fund? Here's a quick DAF primer with details about how they work and how to set one up?