Why Is Everyone Talking About Donor-Advised Funds?
Today is the third annual Donor Advised Fund (DAF) Day, but what exactly is a DAF? Why is every nonprofit talking about them? And… should you get one?
What is a DAF?
An easy way to think about a DAF is as a philanthropic investment account with tax benefits:
Open a DAF account through your local community foundation, or national financial institution like Vanguard, Schwab, Fidelity, and others.
Contribute cash, stock, or other eligible assets to your DAF and receive an immediate tax deduction of up to 60% of your adjusted gross income.
Your contribution is invested, and any investment growth is tax-free.
Recommend grants from your DAF to your favorite charities over time.
DAFs can be an excellent way to simplify your charitable giving, grow your available philanthropic capital, and achieve your giving goals.
Why are nonprofits talking about DAFs?
DAFs have become a major part of the philanthropic landscape. In 2025, more than 200 supporters like you gave to Trees, Water & People through donor-advised funds.
Based on trends and available data:
There are nearly 4 million DAF accounts in the United States.
There are over 1,500 DAF Administrators in the U.S.
Over $60 billion in grants are made from DAFs every year
Total DAF assets today are estimated at over $500 billion.
Is a DAF right for you?
DAFs have quickly become one of the most popular charitable giving vehicles. Donors choose them for a variety of reasons, including:
Flexibility: Build your philanthropic strategy and recommend grants to the causes you care about when you're ready.
Tax-efficiency: Maximize the tax benefits of your charitable contributions.
Growth potential: Invest your charitable dollars and potentially grow the amount available for future giving.
Simplicity: Streamline the organization and administration of your charitable giving.
Legacy: Name a charitable beneficiary of your DAF who will receive the balance upon your passing.
Ready to learn more? Visit our website to explore how you can give to Trees, Water & People through a DAF: treeswaterpeople.org/dafs
If you already have a DAF… Happy DAF Day! Today is a great day to recommend a grant to Trees, Water & People.
Thank you for building your charitable legacy with TWP!
