Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications Ep. 235: Donor-Advised Funds Demystified
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Aug 30, 2025 Mitch Stein, Head of Strategy at Chariot and a thought leader in donor-advised fund payments, joins Glennda Testone to clarify the complexities surrounding Donor-Advised Funds (DAFs). He shares his inspiring journey from investment banking to nonprofit fundraising, revealing the connection between finance and philanthropy. They discuss common myths about DAFs, emphasizing their accessibility to diverse donors and the potential for growth through legislative changes. Insights on personalizing donor experiences and strategies for nonprofits to maximize DAF contributions are also highlighted.
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Cycling Led Mitch Into Philanthropy
- Mitch joined nonprofit Cycle for the Cause and raised tens of thousands, which pulled him from finance into philanthropy.
- That personal ride experience led him to work at the intersection of finance, fundraising, technology, and philanthropy.
DAFs Are Tax-Advantaged Giving Accounts
- A Donor Advised Fund (DAF) is like a 401(k) or HSA but for philanthropy where donors get an immediate tax deduction and the assets grow tax-free.
- Gifts placed into a DAF are irrevocable and must be granted to qualifying charities, changing donors' giving psychology.
Donate Appreciated Assets Through A DAF
- Avoid selling appreciated assets directly for donations; contribute the asset to a DAF to avoid capital gains tax and deduct the full value.
- That tax efficiency lets the full proceeds grow tax-free in the DAF for future grants.