Unlocking DAF Grants: The Fast-Growing Pipeline to Add to Your Grant StrategyIt's almost impossible to open your inbox without seeing another headline about Donor-Advised Funds (DAFs). They remain one of the fastest-growing streams in philanthropy. Chariot’s latest report found that DAF revenue grew 153% last year. You could deem DAFs an individual giving opportunity. Individuals fund them and dictate how the funds are distributed. And for the billions in DAF grants issued by commercial funds? There is rarely a proposal process or program officer to contact. But one vehicle lets you bring DAF funding into your grant strategy: community foundations. Why you should include community foundation DAFs in your grant pipelineThe DAF Research Collaborative’s Annual DAF Report shows that over half of sponsoring organizations are community foundations. Since they focus on a local area, they’re a more accessible entry point for many nonprofits. More fundholders and community foundations are opening their DAF funds to proposals. In my area, the Triangle Community Foundation (TCF) lists open grant opportunities. The North Carolina Community Foundation (NCCF) also offers nonprofits options to apply for funding through its grant portal or by working with a program officer. Keeping your organization's information updated in directories like GuideStar or your community foundation’s catalog provides visibility. When program officers and fundholders search for organizations, you’ll be top of mind. How to align your grant strategy with DAF fundingDAF fundraising success comes down to the same thing as any fundraising effort: relationships.
Natalia Siegel, Director of Donor Engagement at TCF, shares: “DAF fundholders should receive the same stewardship plan as any other donor—send them a thank you and follow up with information on how their gift will be impactful. If you don’t have their contact information, call the sponsoring org and see if they can send your thank you on your behalf. A DAF is just the vehicle; the donor is the relationship.” Kristen Mihaljevic, NCCF’s Director of Development, agrees that stewardship and gift acknowledgment are crucial, but warns that anonymous DAF gifts are common. She cautions: “For commercial DAF providers, the default is often anonymous. Donors may not realize that their information isn’t automatically shared. If you know a donor plans to recommend a grant, ask where the grant will be coming from—whether it’s a community foundation or another provider. Understanding the source can help you ensure the donor receives the thoughtful acknowledgment and stewardship they deserve.” Build DAFs into your grant strategyIf you’re looking to weave DAF funding into your grant strategy, community foundations are an excellent place to start. Use the same tools you rely on for other pipeline funders: find alignment, meet proposal requirements and build relationships. For an entry point into DAF fundraising, take advantage of national DAF Day on Thursday, October 8. Check out the DAF Day website to register and access resources. Upcoming funding opportunitiesThe Merancas Foundation CareSource Foundation
Thrive Tip: Treat DAF advisors like program officers. Send brief project updates and impact stories even when a grant cycle isn't open, so your organization stays top of mind when fundholders ask for recommendations.
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At Thrive Grant Services, we partner with growth-oriented nonprofits to expand their grant funding pipeline with strategy, structure, and clarity. We specialize in helping organizations with established programs, typically with budgets of $500K or more, strengthen their grant readiness, identify aligned funding opportunities, and submit high-quality proposals that reflect their true impact.
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