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Donor-advised funds (DAFs) have become one of the fastest-growing ways to give to nonprofits.
A DAF is like a special piggy bank for charitable giving: you put money in, it can grow through investments while it sits in the fund, and then you get to decide later which organizations receive the money.
With DAF Day taking place on October 9, nonprofits have an opportunity to educate donors about DAFs through email and center them as another way to give online.
I spoke with Kate Rhodes, Senior Officer of Strategic Philanthropy at the International Rescue Committee (IRC), about what DAF Day means, how organizations can prepare, and why DAFs are no longer just for major donors.
Sara Cederberg: For nonprofits that might still be fuzzy on the details — what is DAF Day?
Kate Rhodes: It’s both an educational campaign and a marketing push.
For people with DAFs, it’s about encouraging them to activate those dollars.
For those without, it’s a chance to learn what DAFs are, why they matter, and even consider opening one.
At the IRC, we also tie in legacy giving, reminding supporters that DAFs can name beneficiaries just as retirement accounts can.
SC: DAFs have sextupled in payouts over the last decade, hitting $54+ billion in 2023. What’s fueling that growth?
KR: Accessibility! It used to take $10,000–$20,000 to open a fund.
Now platforms like Daffy and GoFundMe Giving Funds let you start with next to nothing. That’s democratizing philanthropy.
Add to that better education, a push for intergenerational giving, and new tools like Chariot’s DAFpay.
SC: What should nonprofits understand about who today’s DAF donors are?
KR: They’re not just the ultra-wealthy!
We see a lot of mid-level donors using DAFs—people giving $1,000 to $19,999 annually, sometimes even just a few hundred dollars.
It’s much more mainstream than most think.
SC: Nonprofits often cite identifying their DAF donors as their biggest hurdle with DAFs. How can organizations overcome that challenge?
KR: Data is the hardest part.
We’ve used predictive modeling to identify likely DAF donors and are experimenting with ways to recognize recurring DAF givers, allowing us to treat them like sustainers.
SC: What’s the most important thing a nonprofit should do to be prepared for DAF day?
KR: Participate!
Donors are going to hear about it anyway, so if you’re silent, you leave money on the table.
Whether it’s a full omnichannel campaign or just a blurb in your newsletter, doing something matters.
SC: Let’s talk email — what are some smart ways nonprofits can integrate DAF giving into their existing fundraising emails without confusing or overwhelming supporters?
KR: Email is central to the success of DAF Day. We’re sending a mix of education, donor testimonials, and match offers in the lead-up to October 9.
Beyond DAF Day, any time you mention ways to give—monthly, stock, IRA—include DAFs too. And highlight tools like DAFpay that make it simple.
SC: Can you explain how the DAFpay express payout button works?
KR: Instead of prompting donors to log into separate accounts, DAFpay seamlessly connects them directly with major providers like Fidelity, Vanguard, and Schwab.
On our end, we get immediate notifications with donor details—making stewardship much easier.
SC: With DAF Day taking place in October, how can organizations sustain that momentum into year-end?
KR: Remember that DAF giving isn’t tied to year-end taxes; the deduction happens when donors fund their accounts. That means grants can happen anytime.
Keep up steady education and asks all year, especially during slower giving months like January and February.
SC: From your perspective, what are the top three best practices for building a strong DAF strategy?
KR: First, don’t be afraid to start small. Any effort to start introducing DAFs as a way to give is better than none.
Second, always discuss beneficiary designations and legacy giving—there’s a significant amount of money in these accounts that nonprofits can access if they make the ask.
And third, get your data house in order. Track, tag, and steward DAF donors like you would any others. That’s how you build real relationships.
Industry events
Free: DC Nonprofit Club
Thursday, September 11 at 5:30pm EST - Washington, D.C.
Network in-person with peers, swap year-end strategies, and leave with fresh ideas (plus food and drinks!) to fuel your work into 2025.
Free: Smarter year-end fundraising: spot what’s working & fix what’s not
Wednesday, September 17 at 1pm EST
Is your year-end campaign on track? Join Bonterra for a practical webinar on how to read the right metrics, spot red flags early, and make mid-campaign pivots that drive both dollars and long-term donor growth.
Free: Fundraise easier, faster, and smarter this giving season with GoFundMe Pro
Wednesday, October 8 at 1pm EST
This GoFundMe Pro webinar will showcase the latest tools and features to help nonprofits raise money smarter, boost conversions, and achieve year-end goals with less effort.
Check our events list for more or reply to this email to submit one for consideration.
Quick hits
Here we go again: FTC Chair Andrew Ferguson accused Google of “partisan” Gmail spam filtering favoring Democrats—reviving claims already dismissed by the courts and the FEC.
Media Cause unpacks how nonprofits can build a culture of digital experimentation—sharing practical steps for any email team to test smarter, learn faster, and drive more impact with every campaign.
Percolator highlighted how the Alliance for the Great Lakes uses Engaging Networks and Salesforce to drive advocacy and streamline supporter data.
World Central Kitchen is hiring an Email Marketing Manager to drive strategy, storytelling, and fundraising campaigns.
'Til next time!
Sara