The pool of donor-advised fund (DAF) assets is projected to exceed $2 trillion by 2026. It often flows through channels that can conceal the actual donors behind the gifts. While this can be a challenge, it also represents an enormous opportunity for leaders who know how to make the invisible visible.
The Hidden Landscape
Donor-advised funds have fundamentally changed the giving landscape. Unlike traditional major gifts, DAF grants often arrive with minimal donor information, processed through sponsoring organizations like Fidelity Charitable or local community foundations.
The numbers tell the story: with 1.78 million DAF accounts nationwide distributing over $54 billion annually, a significant portion of your donor base may have DAF capacity you've never identified. Even more striking, 30% of DAF donors have household incomes under $200,000—meaning DAF potential exists far beyond your identified major gift prospects.
The answer to uncovering this potential lies in your donor data.
Building Systems That Reveal Patterns
Leaders can uncover DAF capacity by approaching it like detective work, but with systems and processes rather than hunches. Patterns emerge when you know what to look for.
- Start with your anonymous gifts. Every anonymous donation above $1,000 deserves scrutiny. Track timing, amounts, and any identifying information. DAF gifts often cluster around fiscal year-ends for the sponsoring organization, not the donor's personal timeline. They may also come with specific reference numbers or processing codes that indicate their source.
- Cross-reference foundation databases. Many DAF sponsors file as foundations or appear in foundation directories. A donor who gives $2,000 annually through "The Smith Family Charitable Fund" may actually be John and Mary Smith, longtime supporters you never knew had additional capacity.
- Monitor gift patterns that don't match typical individual giving. DAF gifts often arrive as round numbers ($5,000 rather than $5,127.50) and may lack the personal touches of individual gifts—no handwritten notes, consistent processing timing, or use of past gift vehicles like appreciated stock.
The most effective leaders systematize this detective work rather than leaving it to chance observations.
Asking the Right Discovery Questions
Once you've identified potential DAF donors, your next challenge is to get confirmation without seeming invasive. This requires finesse and strategic questioning during donor interactions.
Rather than directly asking "Do you have a DAF?" skilled development staff weave discovery into natural conversations:
- "How do you typically prefer to structure your larger gifts?"
- "Do you ever find it helpful to bunch your charitable giving in particular years?"
- "Have you worked with any financial advisors on your philanthropic planning?"
These questions often reveal DAF usage organically. A donor mentioning they "bunch" their giving or work with a financial advisor on charitable planning may be signaling DAF involvement.
During donor meetings, watch for language cues. Donors who talk about "recommending grants" rather than "making gifts” are often describing the DAF process. Those who mention timing flexibility or tax strategy beyond basic deductions may have more sophisticated giving vehicles at their disposal.
Creating Processes That Scale
Individual discovery is valuable, but strategic leaders build organizational processes that systematically reveal hidden capacity across their entire donor base.
- Staff training. Every team member who touches donor data should understand DAF indicators and know how to flag potential matches. Development staff need protocols for investigating anonymous gifts, and need to understand the documentation patterns that suggest DAF sources.
- Technology plays a key role. Wealth screening services increasingly identify DAF holdings, but you need systems to act on that information. Create database codes that track DAF suspects, confirmed DAF donors, and the various ways they might give (directly, through their DAF, or both).
- Establish partnerships that provide visibility into DAF giving. Community foundations often share general information about their DAF grant patterns. Financial advisors and estate planning attorneys can be valuable referral sources when approached professionally and ethically.
The Stewardship Challenge
The most interesting challenge comes after identification: how do you steward donors whose gifts you can track but whose identities may be partially hidden?
- Strong leaders develop dual-track stewardship approaches. They maintain excellent relationships with DAF sponsors, ensuring smooth processing and staying visible for future recommendations. Simultaneously, they work to surface and engage the actual donors behind the funds.
- Be patient and strategic. A donor who gives anonymously through their DAF may still be willing to meet for coffee to discuss your organization's work. The key is respecting their privacy preferences while creating opportunities for deeper engagement on their terms.
The Multiplication Effect
Mastering DAF identification don't just increase individual gift revenue. DAF donors often move in philanthropic circles where others have similar giving vehicles. One identified DAF donor can unlock networks that can lead to introductions with several others.
DAF donors frequently serve on nonprofit boards, attend philanthropic events, and participate in giving circles. Their affiliation to you can be translated into increased visibility for your organization.
Moving Forward
Making the invisible visible requires combining systematic thinking with relationship-building skills. It means investing in data analysis while maintaining focus on personal connections. Most importantly, it requires looking atapparent obstacles—like anonymous giving—as puzzles to be solved rather than barriers to accept.
The organizations that will thrive in this DAF era won't be those with the most sophisticated technology or the largest development staffs. They'll be led by people who understand that behind every data point is a human story, and that uncovering those stories—respectfully and strategically—is what transforms sporadic gifts into lasting partnerships.
The question isn't whether that capacity exists in your donor base. The question is whether you’ve created the systems and culture needed to find it.
If you’d like help in analyzing your donor database or creating strategies to engage your DAF donors, please contact us.
We've compiled a comprehensive guide to DAFs, including trends in giving, how to get started with a DAF program, practical strategies to use today, how to measure your success and more. Download here.
