Developing the Next Generation of DAF Donors through Giving Funds

Donor-advised funds (DAFs) have quietly become one of the most powerful and fastest-growing vehicles in philanthropy. In 2023 alone, DAFs held over $250 billion in charitable assets, a nearly 10% increase from the previous year, according to the National Philanthropic Trust.

While the scale is impressive, DAFs remain trapped in a model designed decades ago that constrains access and limits their impact. Today, DAFs are still largely reserved for high-net-worth individuals working through financial advisors. Only about one percent of Americans have a DAF. They’re also a paradox for nonprofits: essential sources of funding but frustratingly difficult to access.

At GoFundMe, we believe there’s a better way—one that broadens DAF access to everyone and reflects how people want to give today.

That’s why we launched Giving Funds, a modern, donor-advised fund designed for a rising generation of givers. It’s a new giving experience built to empower individuals and connect their generosity to nonprofits doing urgent, life-changing work.

DAFs Are Booming—But Funds Aren’t Getting to Nonprofits Fast Enough

The potential of DAFs is undeniable. From 2019 to 2023, contributions to DAFs grew 214 times faster than non-DAF giving. That momentum accelerated in 2024, with median DAF revenue rising by 30% and the average DAF donation totaling 26 times more than non DAF gifts. Even more compelling, donor retention was higher among DAF donors, a sign of deeper engagement.

Yet, the model remains flawed. Financial institutions are not incentivized to move funds quickly to nonprofits. With payout rates stuck at just 20% annually, billions of charitable dollars sit idle, even as nonprofits face rising demand and shrinking margins.

Many DAF users also struggle to find where to give. Legacy platforms are designed for investors and often have clunky processes and rigid contribution flows, without offering intuitive or inspiring discovery experiences to guide donors toward meaningful giving. Instead of encouraging action, the experience creates friction and delay.

This status quo doesn’t serve communities in need or the donors who want to help them. One thing we hear repeatedly from donors is that they know which causes they want to support, but they aren’t sure which nonprofits are aligned with those missions. They are eager for a better way to discover organizations doing critical work to advance issues they care about.

Giving Funds: A DAF Built for Action

Giving Funds are a new, easy-to-use giving experience and GoFundMe’s answer to the long-standing challenges of traditional donor-advised funds. They allow anyone to set aside funds for giving, invest tax-free so they have more to give, and support 1.4 million nonprofits directly on our platform.

Giving Funds aren’t just accounts—they’re action engines. They eliminate the friction of traditional DAFs with tools that match donors to nonprofits, make giving intuitive, and mobilize generosity in moments that matter – like crises. Whether it’s through personalized discovery tools that let users find nonprofits related to causes they care about or that are local to their community, our goal is to get the money out the door. And when a crisis unfolds, Giving Funds provide donors with a simple and fast way to support trusted nonprofits helping the communities impacted. Our deep experience in crisis response and our ability to connect those who want to help with the people and organizations who need it is one of the most transformative aspects of Giving Funds.

Imagine donors with a Giving Fund already set up when a wildfire spreads, a flood strikes, or a humanitarian need arises. Rather than starting from scratch or having to navigate complex giving portals, they can immediately support a verified relief organization through GoFundMe. No guesswork. No delays. Just impact. We’ve already seen how quickly digital giving can mobilize support. Most recently, over $265 million was raised on GoFundMe in response to the wildfires in Los Angeles. Giving Funds will take crisis relief support to a new level, making it easier than ever to give both intentionally and quickly in these vital moments.

And it’s not just donors who benefit. Nonprofits with active GoFundMe Nonprofit Pages will be discoverable by Giving Funds donors and can log in to access donor data. This gives nonprofits a direct connection to engaged donors who are not only passionate about causes, but also committed to long-term impact.

The New Generation of DAF Donors

The average DAF donor is 67 years old, 61% are retired, and 94% are white. However, we also know that younger generations – particularly millennials and GenZ – are more likely to account for charitable donations in their financial planning. This signals a powerful opportunity to broaden DAF access, but the current giving ecosystem isn’t designed to engage or serve this next generation of donors. Today’s experience is primarily a wealth management solution and is not built for all donors’ needs or expectations.

Giving Funds make donor-advised technology accessible to everyone by being easy to use, inspiring, personal, and free of fees or minimum balances. You don’t even need to know the words “donor-advised fund” to start a Giving Fund. It’s a giving product that expands the DAF donor base to include young professionals forming their giving habits, community members supporting local causes year-round, and people in GoFundMe’s community of 200 million who are eager to make a greater impact. It’s this dynamic community that makes Giving Funds different from the passive financial vehicles currently in the market.

As Gen Z and Millennials begin to inherit wealth through the Great Wealth Transfer, this approach ensures a new generation of donors can participate in strategic giving.

Making Generosity Simple and Scalable

Philanthropy doesn’t need more complexity. It needs more clarity, ease, purpose-driven action and direct impact.

We believe the next generation of DAF donors is already here. They’re younger, more digitally savvy, and very intentional about how and where they give. With Giving Funds, we’re removing the barriers, modernizing the experience, and making it easier for anyone to turn intent into impact. There are millions of people eager for a simpler way to manage their giving and make a difference in the world; we’re giving them the tools to lead the way.