Nonprofit Lowdown #354- Demystifying DAFs with Mitch Stein
Sep 8, 2025
Mitch Stein, Head of Strategy at Chariot and expert in donor-advised funds (DAFs), breaks down DAFs, revealing they're not just for the wealthy. He shares insights on why a staggering $250 billion sits in these funds and how nonprofits can access it. Mitch emphasizes the importance of building relationships over just courting fund managers to unlock DAF dollars. He also highlights common pitfalls like missed acknowledgments and poor data practices, providing practical tips for better stewardship and fundraising success.
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DAFs Are A Charitable 401(k)
- A donor-advised fund (DAF) is like a 401(k) for charitable giving: you get a tax deduction when you fund it and invest assets for later grants.
- DAFs let donors store ready-to-grant funds and have grown massively to over $250 billion in assets.
DAFs Exploded, Not Invented Yesterday
- DAFs are not new but their use exploded recently, with assets growing about 5x in ten years and $55B granted in 2023.
- The vehicle's rapid adoption makes DAFs a major and growing philanthropic force to understand.
Make DAFs Highly Visible
- Don't expect a public directory of DAF holders; instead make it obvious you accept DAFs across donor touchpoints.
- Embed DAF options in communications, stewardship, and giving flows to increase discovery and use.
