Donor-Advised Fund (DAF) Giving Day on October 9 is quickly becoming a key date on the fundraising calendar. In only its second year, DAF Day highlights one of the fastest-growing trends in philanthropy. With DAF adoption soaring and new tax incentives in play, nonprofits that understand this donor segment will be better positioned to capture year-end generosity.
At Windfall, we work with thousands of nonprofits that are adapting their fundraising strategies for this new era of strategic giving. Our household-level intelligence helps organizations pinpoint which constituents are likely to hold DAFs, prioritize outreach, and engage these donors in ways that match their motivations.
The DAF Boom: Growth & Accessibility
2025 has been a landmark year for Donor-Advised Funds. National providers such as DAFgiving360 report nearly $8.9 billion in grants, a 34% increase year over year. More than 1.4 million grants have already been distributed, with donors giving at a pace exceeding $24 million per day.
Retention rates are climbing, too, according to Chariot’s DAF Fundraising Report (2024). Once a donor gives through a DAF, their likelihood of giving again the following year jumps from 46% to 59%. This consistent behavior makes DAF donors an invaluable long-term segment for nonprofits to cultivate.
DAFs are also becoming far more accessible. Research from Philanthropy Roundtable and Chariot shows that accessibility is driving broader participation.
- Sixteen percent of national DAF accounts now accept minimum contributions as low as $5,000, and several platforms have removed minimums altogether.
What was once a tool of ultra-high-net-worth families is now a mainstream vehicle for affluent and even mid-market donors who want the flexibility of giving strategically over time.
2025: A Unique Tax Window for Strategic Donors
This year presents a rare opportunity for donors to maximize tax benefits before several key provisions are set to change in 2026. These shifts come from the scheduled sunset of the 2017 Tax Cuts and Jobs Act (TCJA), which will reset deduction limits and income thresholds.
- The higher standard deduction stays in place through 2025. Married couples can deduct up to $31,500, and individuals up to $15,750 this year.
- The standard deduction will decrease slightly in 2026, which may allow more households to itemize their deductions. However, new limits such as the adjusted gross income (AGI) floor and the cap on state and local tax deductions will continue to reduce the overall value of charitable deductions for many taxpayers.
- A new 0.5 percent AGI floor for charitable giving begins in 2026. Smaller gifts that fall below that percentage of income will not qualify for a deduction.
- The top federal tax rate remains 37 percent. Beginning in 2026, the value of itemized deductions for top earners will be capped at 35 percent, which slightly reduces the benefit of charitable deductions for high-income donors.
- The State and Local Tax (SALT) deduction cap remains temporarily expanded to $40,000 through 2029. SALT refers to the deduction for state and local taxes. Donors in high-tax states such as California, New York, and New Jersey often combine these deductions with charitable contributions to reach the itemization threshold and optimize their tax benefit.
- The federal estate and gift tax exemption is $13.99 million per person in 2025 and will increase to $15 million in 2026, indexed for inflation. While this no longer represents the sharp drop that was once expected, it still creates a planning window for households making large charitable or legacy gifts.
Together, these adjustments make 2025 an important year for donors to review their giving strategies and maximize impact before new deduction limits take effect. Nonprofits that understand these changes can use data to help supporters act early and plan their giving with confidence.
Why Nonprofits Struggle to Capture DAF Giving
Affluent households are increasingly turning to structured giving vehicles to manage their philanthropy. According to the 2025 Bank of America Study of Philanthropy, about 24 percent of affluent individuals either currently have or plan to establish a giving vehicle such as a donor-advised fund, private foundation, charitable LLC, or giving circle. Among those who already have one, 91 percent made donations through it in 2024, showing how central these vehicles have become to high-value philanthropy.
For nonprofits, this shift introduces real complexity. A single household might give directly, through a DAF, and through a family foundation in the same year. These parallel channels make it difficult to connect gifts to the right donor relationships, track cumulative giving, and steward major contributors effectively.
Windfall helps organizations close this visibility gap with household-level wealth screening and career intelligence. Our insights enable nonprofits to:
- Identify households using structured giving vehicles. Windfall surfaces prospects who have DAFs and family foundations, or may in the near future (e.g., UHNW households with a trust association)
- Understand the context behind complex giving. Wealth screening can provide you with insights beyond a household’s net worth, such as recent life and liquidity events, asset ownership, and career context.
- Engage with precision. Outreach can be tailored for strategic philanthropists who prioritize impact, legacy, and thoughtful planning.
With these insights, nonprofits can move from reactive fundraising to intentional relationship building that reflects how affluent donors actually give across multiple vehicles and entities.
Understanding the Donor Profile of DAF Account Holders
DAF donors don’t just differ in how they give. They also differ in how they participate across financial, civic, and philanthropic networks.
Windfall’s data shows that households with a Donor-Advised Fund are more likely to hold assets in a trust, serve on nonprofit boards, and have a family foundation compared with the broader U.S. population. These markers signal a level of sophistication and structure that extends beyond one-time donations.
This profile underscores why DAF donors respond best to personalized communication. They’re strategic philanthropists who already manage assets, understand the tax implications of giving, and are accustomed to evaluating impact. Development teams that can identify and speak to these motivations are far more likely to secure meaningful, long-term commitments.
Best Practices for Engaging DAF Donors in 2025
- Promote DAF giving everywhere.
Include “Give from my Donor-Advised Fund” options across all donation pages, campaign emails, and pledge forms. Many DAF donors simply need to be reminded that your organization can receive a grant directly. - Start conversations with major donors.
Many long-time supporters have shifted part of their giving into DAFs for convenience and tax strategy. A quick check-in can uncover grant opportunities that don’t appear in your standard CRM data. - Use wealth data to build segmented DAF lists.
Target prospects who combine high capacity, philanthropic engagement, and a known DAF vehicle or high likelihood. These lists outperform generic appeals and improve donor retention. - Steward DAF donors with precision.
Acknowledge grants quickly, share clear impact updates, and invite continued participation. Once a donor gives through a DAF, proactive recognition often turns one-time grants into recurring annual commitments.
The Bottom Line
DAFs have become a cornerstone of modern philanthropy. As grant activity and accessibility continue to grow, nonprofits that understand who their DAF donors are will be best positioned to capture new giving this fall.
Windfall equips organizations with the data to make that possible. Our household-level wealth insights, philanthropic indicators, and predictive models help teams identify, engage, and steward DAF donors with accuracy and precision.
DAF Giving Day 2025 is more than a fundraising moment. It reflects where philanthropy is heading and how data will shape the next generation of donor relationships. Organizations that invest in these insights today will be the ones leading tomorrow.
Join Us Tomorrow
Want to see how Windfall’s new DAF flag helps you identify, segment, and engage donor-advised fund households with precision? Join our live webinar tomorrow to learn how leading nonprofits are using household-level data to uncover hidden DAF donors and activate strategic giving opportunities.
Sources:
- DAFgiving360. National DAF Grant Trends Report (2025)
- Bank of America. 2025 Study of Philanthropy: Charitable Giving by Affluent Households
- Chariot. DAF Fundraising Report (2024)
- Philanthropy Roundtable. Trends in Donor-Advised Fund Accessibility (2024)
- Internal Revenue Service. 2025 Federal Deduction Guidelines and Tax Cuts and Jobs Act (TCJA) Sunset Provisions
- Windfall. Proprietary Data and Predictive Modeling Insights
