5 takeaways from the 2024 DAF Fundraising Report 

Donor-advised funds (DAFs) are the fastest-growing giving vehicle today, and DAF donors are bucking the downward trend in donor participation, according to the 2024 DAF Fundraising Report. Based on 2019-23 data from 20 national nonprofits, the study from K2D Strategies and Chariot examines growth in DAF revenue, the number and size of gifts, and the number and retention of donors, among other things. Here are five significant findings: 

1. DAF revenue grew significantly faster than non-DAF revenue from 2019 to 2023

Total revenue from DAF contributions for the organizations in the study increased steadily—from $116 million in 2019 to more than $192 million in 2023. More than half the nonprofits saw increases of more than 200% in DAF revenue, while more than a quarter saw non-DAF revenue decline over the same period. The median share of DAF revenue as a percentage of total revenue nearly doubled, from 6.7% in 2019 to 12% in 2023. Of the 20 organizations, six reported that DAF contributions accounted for at least 20% of total revenue last year. 

2. The number of DAF gifts nearly doubled from 2019 to 2023

The total number of DAF gifts to the nonprofits in the study grew from about 30,000 in 2019 to nearly 53,000 in 2023—an increase of 83%. On a year-over-year basis, the number dipped 7% in 2023, but this was primarily due to spikes in giving to some of the organizations the previous year. For more than half of the organizations, the number of non-DAF gifts fell while the number of DAF gifts rose. 

3. The number of DAF donors grew as non-DAF donors fell 

As of 2023, non-DAF donors to the organizations in the study still far outnumbered DAF donors, who accounted for 34,498 out of 15.3 million total donors. But whereas the number of non-DAF donors has been declining for years, the total number of DAF donors has nearly doubled since 2019. Nearly all organizations saw increases in DAF donors through 2022, although 25% saw slightly fewer DAF donors in 2023 than in 2022. By contrast, more than half of the 20 nonprofits saw declines in non-DAF donors in 2020, 2022, and 2023, when 75% saw declines.  

4. The average DAF gift is significantly larger than the average non-DAF gift and growing faster 

From 2019 to 2023, the mean average DAF gift size was consistently between 18 and 20 times larger than the average non-DAF gift, even when gifts over $25,000 were excluded to remove outliers. The size of DAF gifts also grew at a faster rate, rising from $1,158 in 2019 to $1,294 in 2023 (11.7%), compared with non-DAF gifts, which grew from $63 to $68 (7.9%). Similarly, the median DAF gift size (excluding gifts over $25,000) grew from $250 in 2019 to $300 in 2023 (20%), while the median non-DAF gift grew from $58 to $64 (10.3%).  

5. DAF donors have higher retention rates than non-DAF donors

Not only are DAF donors growing in number and giving larger gifts than non-DAF donors; they also are more likely to give year after year. Donor retention rates for DAF donors fell from 62% in 2021 to 50% in 2023 but remain above those of non-DAF donors, which fell from 44% to 42%. The study also found that when non-DAF donors became DAF donors to the same nonprofit, their annual giving to that organization increased an average of 96%. More than 25% of these converted donors increased their annual support by more than 200%. 

In addition to these data findings, the report also outlines proactive fundraising strategies such as encouraging DAF giving with a multi-channel communications strategy, implementing technology to make DAF giving easy for donors and facilitate DAF gift tracking and data management for the organization, and incorporating a DAF giving strategy across the entire organization, not just a specific team. Recommendations for DAF data management include a checklist of setting up a database and best practices such as listing the DAF provider as the “hard credit” and the DAF donor as the “soft credit” for legal and accounting purposes. 

This piece is part of a regular feature where Candid insights shares key takeaways from a new research report to encourage a more data-driven approach to the sector’s work. Leave a comment to recommend a report for an upcoming feature. 

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