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Home Services for charities Resources for charities Donor Advised Funds: Who uses them and what do fundraisers need to know?
05 November 2025

Donor Advised Funds: Who uses them and what do fundraisers need to know?

Adriana Lowe Adriana Lowe Senior Private Client Manager

If your charity relies on major donors, it is very likely you have been hearing more and more about Donor Advised Funds (DAFs) in recent years and may have possibly received donations from DAF providers, including CAF.

For those unfamiliar with this giving method, we have this handy introduction on DAFs, which may be useful. It is worth exploring more broadly how they work, so that you are prepared to handle any donations which come via this route.

We believe that DAFs are a fantastic way for donors to give and can also add value to the charities to whom they distribute funds. That said, if your organisation is used to engaging donors directly, donations from DAFs may seem very different.

Below we address common questions we hear from charities. These views reflect how we work with donors at CAF and may not apply equally to all providers. 

Should I target DAF providers as a fundraiser?

As the name suggests, donors — not providers — decide where grants go, rather than the DAF provider. It is tempting to see DAFs as a little black book of potential donors, but realistically most providers are very unlikely to fundraise among their clients on a charity’s behalf. I know lots of incredible charities I admire. Nonetheless, my clients’ priorities and values are the deciding factor in what charities they choose to fund, rather than mine.

Our view: keep your fundraising strategy donor-focused, relationship-led and impact-led. The mechanism a donor uses (direct gift vs DAF) matters less than alignment to their values and the quality of stewardship you provide.

Who uses DAFs?

Very likely, some of your donors. They are a growing part of sector income (for example, 360 Giving’s UK Grantmaking platform reports a 20% increase in grantmaking via DAFs).

There is no single profile: individuals, families and companies all use DAFs, for everything from casual to highly structured giving. DAF users may not necessarily be big givers. Many providers, including CAF, offer DAFs at all levels (I have one!), but here we are talking specifically about high value giving.

The upside of this is that you are not dealing with a new “type” of donor, and your existing fundraising strategy, if successful, will attract DAF users and direct donors alike. A practical step is to ask major donors in advance of receiving funds if they are using a DAF. This may be helpful for you in understanding logistics and ensuring things go smoothly.

We received a DAF grant but I don’t know the donor. How do we build a relationship?

When appropriate, you can just ask the DAF provider. High-value donors often have a relationship manager who knows the donor’s preferences and can advise on suitable stewardship (thank-you language, impact updates, fundraising invitations). If consent allows, they may even be able to give you direct contact details.

Donors are often busy and hard to pin down. Having a contact who knows them well and is readily available can be a big boost to your understanding of a donor. Try to use this to your advantage and treat the provider as a partner, not a barrier. 

“We are increasingly aware of the role of DAFs in modern philanthropy, but we still have a lot to learn. DAFs can feel like a 'black hole' from a charity perspective. We have seen funding arrive via a provider, but with limited visibility into who the donor is or how we can build a meaningful relationship with them. 

We would like to know how donors using DAFs are making decisions. What are their motivations? How are they choosing the causes they give to? What, if any, role can charities play in that?”

Euan MacNeish, Philanthropy Manager at Worldwide Cancer Research

How do I engage an anonymous DAF donor?

Anonymous donations can mean different things. Without context, it can feel hard to know what, if any, follow up is appropriate and how to replicate that success.

Firstly, it is important to establish what anonymous means for each individual donor. The answer will vary case by case, but it is worth checking with the DAF provider where possible what anonymous means for your specific donor.

For example at CAF, some of our donors prefer that we do not pass any information between them and the charities they support. However we also work with clients who prefer CAF to handle communication at first, so they can maintain privacy, but may evolve to a more direct relationship over time. This might look like passing on thank you messages, impact updates, and on occasion helping charities understand which fundraising asks could be appropriate.

It is also important to know that the DAF provider will complete due diligence on the donor. At CAF, we run Know Your Customer (KYC) checks on DAF donors.  This should give your charity confidence in accepting gifts, even without direct contact. And remember: an anonymous donation may be one you would not otherwise have received.

How does Gift Aid work on donations from DAFs?

Gift Aid is claimed on the donation given by the donor to the provider (a registered charity) and added to the DAF balance. That means your charity cannot claim additional Gift Aid on the grant you receive from the DAF.

Many donors already factor this in when they make donations via their DAF and increase the value accordingly but do have the confidence to ask your donors about this and whether they would like to give you a donation, plus the Gift Aid equivalent. 

To wrap up, DAFs are simply another way for donors to support charities. Whether a gift comes directly or via a provider, the same good fundraising practices apply: focus on the donor and the impact. In our next article, we explore practical ways to attract and engage major donors. 

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