Exploring Donor-Advised Funds and Their Impact on Charitable Giving

Each month, the Wyoming Nonprofit Network highlights a specific topic impacting the nonprofit sector in its What We Are Learning email series. In March 2026, WNN is learning about donor-advised funds and the opportunities they offer for nonprofit organizations.

Start Thinking About Donor-Advised Funds 

A donor-advised fund (DAF) is a charitable investment account that allows donors to make tax-deductible contributions of cash or securities, invest them for tax-free growth, and grant funds to IRS-qualified public charities. Consider the pre-learning questions below related to donor-advised funds:   

1. Do those involved in fund development for the organization, including staff and board members, understand what donor-advised funds are?

2. Has the organization previously received any contributions from donor-advised funds? If so, how were these contributions acknowledged?

3. Does the organization's donor database software allow for the tracking of donor-advised funds received?   

4. Has the organization developed partnerships with community foundations or financial institutions that sponsor donor-advised funds?

Donor-Advised Funds by the Numbers 

According to research recently published by the DAF Research Collaborative:

• Donor-advised funds saw record growth by early 2026, with assets reaching $326 billion and 3.56 million accounts.
• DAFs are widely used, with an average account size of $91,611.
• DAFs maintained a high payout rate of over 25%, granting $64.9 billion to charities in 2025.

As the charitable contributions held in DAFs continue to increase, it is critical that nonprofit organizations pursue these funds. To do so, organizations should actively invite donors with DAFs to support their mission and build relationships with the community foundations and financial institutions that administer these funds.

Access DAF Collaborative Research’s complete “Annual DAF Report 2025” for more information on the donor-advised funding landscape in the United States.

Donor-Advised Funds and WyoGives 

Tuesday, April 7, 2026, from 9:00 a.m. to 10:00 a.m.

Join the Wyoming Nonprofit Network for this virtual learning opportunity to explore how match and challenge gifts and the use of donor-advised funds can strengthen your WyoGives campaign. During the session, attendees will learn strategies for securing matches and challenges, how to communicate these funding opportunities to donors, and how to use these tools to encourage broader participation from supporters on WyoGives Day.

Resources

• For educating staff and board members on donor-advised funds, watch and discuss Fidelity Charitable’s “What are donor-advised funds?”

• In a study from Giving Compass and the Indiana University Lilly School of Philanthropy, “37% of respondents said they did not use their DAF for their most recent donation, citing the extra steps involved.” Read Candid’s “How DAF donors research nonprofits and how organizations can boost their visibility” to understand how your organization can encourage DAF donors to give.

• Donor-advised funds can be used to support matches and challenges, leveraging the donor's contribution to increase donations and community engagement. Learn more about implementing this strategy through NP Source’s “How to Leverage Donor-Advised Funds for Your Challenge Grant.”

What You Want to Learn Matters

Email Director of Learning and Development Tess Mittelstadt at tmittelstadt@wynonprofit.org with your feedback on the What We Are Learning email and suggestions on future topics.

Wyoming Nonprofit Network
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307-772-9050
wynonprofit.org