Nonprofit Lowdown #354- Demystifying DAFs with Mitch Stein
Sep 8, 2025
Mitch Stein, Head of Strategy at Chariot and expert in donor-advised funds (DAFs), breaks down DAFs, revealing they're not just for the wealthy. He shares insights on why a staggering $250 billion sits in these funds and how nonprofits can access it. Mitch emphasizes the importance of building relationships over just courting fund managers to unlock DAF dollars. He also highlights common pitfalls like missed acknowledgments and poor data practices, providing practical tips for better stewardship and fundraising success.
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Make DAFs Highly Visible
- Don't expect a public directory of DAF holders; instead make it obvious you accept DAFs across donor touchpoints.
- Embed DAF options in communications, stewardship, and giving flows to increase discovery and use.
Don’t Chase Providers; Cultivate People
- Focus on individual donor relationships over courting large DAF providers; fundraising is still person-to-person.
- Prioritize building networks with financial advisors and estate attorneys who guide donors' giving decisions.
Expect Variable Disbursement Rules
- There is no single IRS payout rule for DAFs; providers set their own inactivity policies.
- Expect variability: some providers start dispersing after two years or apply inactivity rules differently.
