The Overlooked Recurring Giving Opportunity in Donor-Advised Funds
In January, one of the “Waves to Ride” I identified for 2026 was the rise of Donor-Advised Funds, or DAFs, as they are more commonly referred to:
Donor-Advised Funds have been growing at an accelerating pace for more than a decade. In 2024, contributions to DAFs exceeded $89 billion, total assets surpassed $326 billion, and grants from DAFs to charities reached an all-time high of $65 billion—more than double what donors were granting just six years earlier (per the DAF Research Collaborative). – Waves to Ride in 2026
The beauty of a Donor-Advised Fund is that the dollars are pre-committed by donors and cannot be used for any other purpose than distributions to charities.
There are nearly 3.6 million donor-directed DAFs out there, representing $326 billion ready to be given, with $65+ billion given annually.
I went deep into this topic recently with Mitch Stein on the Sustainable Giving Podcast. Mitch serves as the Head of Strategy at Chariot, the organization that powers DAFpay, a tool that turns a painful donation granting process into three-clicks, enabling donors to give from their DAF to the charity of their choice.
You can listen to that episode here:
🎙️ Listen to Season 2, Episode 9: The $326 Billion Question
Chariot’s DAFpay was such a significant innovation in the sector that Time Magazine honored it as one of the Best Inventions of 2025.
DAFs are an increasingly big deal. But did you know that a substantial percentage of DAF giving is recurring giving?
DAF Giving is Recurring Giving
Vanguard Charitable, one of the largest DAF providers, recently highlighted a report showing that 69% of its grants are recurring. And further, those recurring grants, on average, increased in size by 40% over five years.
Called Why Giving Matters, the Vanguard Charitable report's subtitle says it all:
“Recurring giving with donor-advised funds results in more reliable funding for nonprofits.” - Why Giving Matters, Vanguard Charitable
The report goes on to share several insights underscoring how much DAF giving is recurring giving, and how much more valuable DAF recurring gifts are:
69% of DAF grants were recurring, given to the same organizations with regular frequency over the past 10 years.
24% of DAF grants were automatic, scheduled by a donor and automatically distributed over the past 10 years.
Recurring donors granted 3.5 times more dollars than nonrecurring donors in 2024.
Recurring donors increased their grant amounts by 8% on average each year.
We know that nonprofit leaders value steady, recurring revenue, but the report cites several survey statistics that underscore the importance of sustainable giving.
Among nonprofit leaders:
76% prefer recurring donors to one-time donors.
72% prefer to receive gifts between January and September.
82% find that recurring donors are more engaged overall.
“We value recurring donors’ ongoing commitments because they not only support operational needs but also foster a deeper connection between our organization and those who believe in our mission.”
LeTeisha Gordon, Founder & Program Director
A Better Day Than Yesterday Initiative Program
The report underscores the importance of steady giving during the typically difficult summer months, showing that automatic recurring grants make up more than 20% of summer giving from distributions.
Above: Recurring DAF donors still give even when other giving slows. In the critical summer months, Vanguard Charitable found that automatic recurring grants make up more than 20% of summer giving.
We know that DAFs are growing, amounting to $326 billion in 2024.
And we now know that DAF donors are giving on a recurring basis.
So, what can you do to grow recurring DAF giving to your charity?
Growing Recurring DAF Giving for Your Charity
If DAF giving is growing – and much of it is already recurring – then the question becomes simple:
How do you position your organization to receive more of it?
Here are three practical ways nonprofit leaders can begin leaning into this wave.
1. Make DAF Giving Easy
The first barrier to DAF giving is often surprisingly simple – friction.
For many donors, the traditional process of recommending a grant from their DAF can be clunky. They need to log in to their provider, search for your organization, confirm details such as your legal name and EIN, and then manually submit the grant.
That friction adds up.
At a minimum, make sure your website clearly lists the information donors need to recommend a grant from their DAF:
Your legal nonprofit name
Your EIN
A simple explanation that DAF grants are welcome
Even better, explore tools like DAFpay from Chariot, which allows donors to recommend a DAF grant in just a few clicks directly from your donation page.
As Mitch Stein explained on the podcast, innovations like this dramatically simplify the process for donors—and when you remove friction, giving tends to increase.
2. Treat Recurring DAF Donors Like Sustainers
If a donor gives to your organization from their DAF every year, they are functionally a recurring donor, even if the gift isn’t made by credit card or ACH.
But many organizations unintentionally treat these donors like one-time givers because the payment method is different.
Instead, recognize the reality: Recurring DAF donors are sustainers.
That means:
Acknowledge them as part of your recurring or sustainer community.
Thank them for their ongoing commitment.
Report back regularly on the impact of their consistent support.
Some organizations are even beginning to invite donors to “fund” their recurring giving from a DAF – encouraging them to schedule a monthly, quarterly, or even annual recurring grant that matches their monthly giving equivalent.
Because the dollars are already set aside for charitable purposes, this can be a natural and powerful way for donors to sustain their giving.
3. Invite DAF Gifts More Often
Finally, one of the simplest ways to increase DAF giving is to talk about it.
Many donors with DAFs won’t think about giving from their DAF unless you connect the dots and ask them to consider it.
Consider incorporating DAF invitations across multiple channels:
Direct mail reply devices
Newsletter sidebars
Email appeals
Year-end communications
Event presentations
Website donation pages
A simple line like this can make a difference:
“You can support this work through your Donor-Advised Fund. Simply recommend a grant to [Organization Name].”
When donors already have funds set aside for charity, the invitation can be the nudge they need to direct those dollars toward your mission.
Donor-Advised Funds are no longer a niche giving vehicle.
DAFs represent hundreds of billions of dollars already committed to generosity.
And as the data shows, a significant portion of those dollars is already being given on a recurring basis.
Which means this wave isn’t just about DAF growth.
It’s about recognizing that DAF giving is increasingly sustainable giving.
💡 Takeaway: Donor-Advised Funds aren’t just a growing source of philanthropy—they’re increasingly a source of sustainable giving. The nonprofits that make DAF giving easy, recognize recurring DAF donors as sustainers, and consistently invite these gifts will be best positioned to ride the wave.
Until next week… Surf’s Up! 🌊
- Dave