Donor-advised funds (DAFs) have become one of the fastest-growing forces in philanthropy, quietly reshaping how billions of charitable dollars move each year. Yet even as DAFs become more common, the donors behind them can be easy to overlook. A DAF grant may provide limited insight into a donor’s financial picture, philanthropic priorities, or long-term intentions, making it easy to view the gift as a transaction rather than part of a broader philanthropic strategy.
Some assumptions about DAF donors can make it harder to recognize their potential as long-term philanthropic partners. These perceptions are understandable, but they may cause fundraisers to overlook donors who could be strong candidates for planned gifts or deeper engagement.
To better understand where these assumptions can limit planned giving strategy, consider four common myths about DAF donors.
Myth 1: DAF giving is only for wealthy donors.
When DAFs are viewed as a charitable tool only for affluent donors, a broader segment of philanthropic supporters may be overlooked. In fact, DAFs are not limited to the wealthy. Initial contribution requirements vary by sponsoring organization but are often modest or nonexistent, making DAFs accessible to a much broader range of donors than some planned giving professionals may assume. In practice, DAF activity may reveal more about a donor’s giving behavior than their wealth. Donors who use DAFs may give regularly, support multiple charities, or plan their giving strategically.
Rather than using wealth alone to evaluate a DAF donor’s planned giving potential, consider whether the donor:
• Gives consistently over time.
• Supports multiple charities or causes.
• Uses appreciated assets or bunches gifts as part of a broader charitable plan.
Myth 2: DAF donors are anonymous and therefore unreachable.
When a DAF grant arrives anonymously—whether by the donor’s choice or because of the sponsoring organization’s default setting—building a relationship with the actual supporter may be difficult. The result is that donors who may have significant charitable intent and long-term giving potential can remain hidden in plain sight.
However, fewer than 4% of DAF grants are completely anonymous, and partially anonymous grants may provide useful information (for example, 79% of donors who made partially anonymous grants believed they could be easily identified from the name of their DAF account).² It’s important not to assume that anonymity always means inaccessibility. At the same time, any effort to identify a donor should respect the donor’s privacy and communication preferences.
The goal is not to “unmask” a donor, but to create an appropriate opportunity for stewardship when possible:
• Review the original grant correspondence carefully, as it may include the donor’s name, the DAF account name, or another identifying detail.
• Check whether the account name or giving pattern corresponds with an existing donor record.
• Make planned giving information visible on your website, as well as in newsletters, emails, and DAF communications, so donors can recognize opportunities even when you can’t contact them directly.
Myth 3: DAF donors only give at the end of the year.
Year end is an important period for DAF activity. However, the assumption that DAF donors are primarily year-end donors overlooks the ways in which many donors actually use their funds. Some donors create automatic recurring grants or recommend grants throughout the year. For example, a Vanguard Charitable report found that automatic recurring grants account for 25% of grants in July—a typically slower time for giving.³ DAFs are also well positioned to respond quickly to an organization’s urgent appeal or a global crisis because those funds have already been set aside for charitable purposes.
Resist the temptation to focus DAF outreach exclusively on the fourth quarter. Instead:
• Base stewardship on observed giving patterns rather than calendar timing alone.
• Consider whether donors make recurring, multi-cause, or crisis-responsive grants and tailor communications accordingly.
• Integrate planned giving messages into donor communications throughout the year, treating DAF donors as strong candidates for bequests, beneficiary designations, and other legacy gifts.
Myth 4: DAF donors are not interested in other planned giving opportunities.
DAFs and planned gifts are often complementary. By establishing and funding a DAF, donors have already demonstrated an interest in thoughtful charitable planning. Those actions may indicate a deeper commitment to philanthropy, not a preference for one type of gift. Donors who use DAFs may also incorporate other forms of giving into their broader charitable plans, including bequests, beneficiary designations, gifts of appreciated assets, or qualified charitable distributions from their IRAs.
To uncover planned giving opportunities beyond the current DAF grant:
• Treat DAF donors as planned giving prospects and look for appropriate opportunities to discuss long-term charitable goals and legacy intentions.
• Pay attention to evidence of giving through multiple vehicles, such as appreciated stock gifts, qualified charitable distributions, or documented estate commitments.
• Ask how donors have arranged for their DAF to be handled after their lifetime, including successor advisors or charitable beneficiaries. That conversation can naturally lead to a broader discussion of their legacy plans.
Reframing these assumptions can help you better identify, engage, and steward DAF donors as part of a broader continuum of philanthropic support. A DAF grant should not be treated as an isolated transaction. It may be evidence of a donor’s sustained commitment, thoughtful planning, and potential interest in making a lasting legacy gift.
