Article on DAFs’ Problems Was Spot On. My Experience Is Proof

To the Editor:

Drew Lindsay’s article “DAFs, Wall Street, and the Changing Culture of Giving” (December 9, 2024) resonated with my experience and frustrations with DAFs as a 25-year nonprofit fundraising veteran.

For years, my fundraising colleagues and I have tried to build relationships with philanthropic advisors at donor-advised fund sponsors. Early on, I assumed that if I proactively shared information about my nonprofit’s work, they might pass it on to clients whose charitable interests aligned with our mission to help end extreme poverty.

I quickly learned this is not how the DAF system typically works. I’ve had several advisors at DAF sponsoring organizations tell me they don’t advise clients on philanthropic strategies. Instead, they primarily help clients maximize the tax and other financial benefits available when they contribute to a DAF account.

But given that DAFs are meant to enable philanthropy, advisors should offer guidance that isn’t solely transactional. They should help DAF holders effectively deploy their charitable dollars.

I also applaud the Institute for Policy Studies for calling attention — and proposing fixes — to DAF issues, as noted in Lindsay’s piece. To liberate the billions of dollars in these accounts, new legislation should require DAF holders to distribute funds in the same year they open an account.

These modifications would force DAF holders to learn where their donations could do the most good, and help nonprofits accomplish even more life-changing work. Until that happens, this enormous pool of funds will be left undistributed instead of benefiting those who need it most.

Rhonda Zapatka
Vice President of Development
Trickle Up