Want to Boost DAF Revenue? It All Comes Down to Strategy
A new report reveals that intentional, long-term planning and clean data can double DAF revenue and boost donor retention rates.
By Rasheeda Childress
Senior Editor, Fundraising
May 20, 2026 | Read Time: 4 minutes
Donors who give from donor-advised funds have average retention rates that are 13 percent higher than non-DAF donors, and the median DAF gift is 12 times as large as the median non-DAF gift, according to the just-released 2026 DAF Fundraising Report.
The report, now in its third year, is prepared by Chariot, a DAF payment processing company, and K2D Strategies, a fundraising agency. Researchers examined contributions to 54 organizations during the past year, which included more than 147 million transactions. The report acknowledges that taking simple steps to notify donors that you accept DAF gifts can bring in more money, but the organizations that attracted the most DAF gifts incorporated DAFs into their fundraising strategy.
More organizations are making it easier for folks to give through DAFs, says Mitch Stein, a researcher and head of strategy at Chariot.
Organizations of All Sizes Saw Growth in DAF Gifts
Organizations that are most successful at attracting gifts from DAFs (those in the 90th percentile) receive 24 percent of their fundraising revenue from DAFs, while those in the 10th percentile receive just 3 percent of their fundraising revenue from DAFs.
While some think of DAFs exclusively as a source of major gifts, the report found that two-thirds of DAF gifts were less than $1,000. Nearly a quarter (23 percent) were $1,001 to $4,999, and only 2 percent exceeded $25,000.
Small organizations (those with annual budgets under $10 million) saw the biggest increase, with a 24.1 percent year-over-year jump in DAF revenue. But organizations of all sizes saw growth, ranging from a 10.3 percent increase for midsize groups (budgets of $10 million to 20 million), 12.8 percent for large organizations (budgets of $25 million to $150 million), and 15.7 percent growth for extra large nonprofits (budgets of more than $150 million).
How to Win More DAF Gifts
No Kid Hungry saw its DAF revenue double year-over-year after promoting DAF giving in all its communication channels. “We really went complete surround sound and were able to see a peak in revenue at the end of last year,” says Karen Barr, managing director of individual giving. The organization consistently beats the drum about giving through DAFs in all its outreach, Barr says.
Nonprofits that are most successful at attracting DAF gifts create a holistic approach to reaching DAF donors, says Stein. That includes mentioning DAFs to donors at all levels — from annual giving to major gifts. It is vital to track gifts, keep accurate records, and thank donors as well, Stein says. “It’s an accumulation of these smaller steps that make a difference.”
The International Rescue Committee generated $11 million more in DAF gifts last year, according to the report. The IRC’s retention rate for DAF donors is also 23 percent higher than for non-DAF donors.
Kate Rhodes, IRC’s senior officer for strategic philanthropy, notes that the group prides itself on thanking donors well and continuing to steward them. It also tailors messages to those who have given from DAFs before, asking them to do so again. “Clean data is key to having these programs run smoothly,” and the IRC is still refining how it manages DAF donor data, Rhodes says.
Engaging DAF Donors Takes Time
While some organizations in the report had spectacular results, not all did. The bottom 10th percentile saw an 8 percent decline in DAF revenue compared with the highest performers, which enjoyed a 382 percent increase.
Barr, with No Kid Hungry, notes that implementing a successful DAF strategy is “a learning curve,” and it may take a bit of time to process the data to see how your strategy is working.
“It’s not a quick fix,” she says. People sometimes think they can just throw a DAF button on their website and the money will roll in, she adds, but that is not how it works.
“You’ve got to fix the infrastructure, the back end. What are you going to do when the money comes in? How are you going to thank the donor? How are you going to steward the donor? How are you going to cultivate the donor?” All of these questions must be addressed to make the biggest strides.
No Kid Hungry is in its third year of working to upgrade its fundraising strategy for DAF donors. The first year was spent getting the back end together to collect the right data, Barr says. In the second year, the organization joined this research project, tried some tactics, and realized it had many untapped DAF donors. “It wasn’t until this year that we were able to double our revenue and growth,” Barr says. “We’re seeing the success, but it took three years to get here.”
The IRC is a bigger fundraising operation and the gift officers on its mass markets team are called “donor ambassadors.” The ambassadors digitally cultivate midlevel donors who have DAFs, says Ishmam Raidah Rahman, IRC’s director of audience and donor strategy.
“Patience is key, especially for DAF giving,” Rahman says. “The money is there. We just need to get them to give it. Remember, the DAF is just a vehicle. We should be stewarding and cultivating and soliciting these donors very strongly [and] making that specific ask about the DAF.”
