During the season of giving, millions of Americans make one-time donations to causes they care about. But what if this generosity could reach far beyond a single day? Opening a donor-advised fund (DAF) can turn a single act of giving into a sustainable practice, allowing donors to support the causes they are passionate about over time. A DAF transforms one moment of generosity into a lifetime of impact, giving people the flexibility to respond at the right time and in the most effective way.
A DAF is a giving account that works like a charitable savings account. It’s opened with a sponsoring organization. Donors can contribute cash, stock or other assets and receive an immediate tax deduction. Contributions can be invested to grow over time, and donors can recommend grants to any eligible nonprofit whenever they choose. A DAF simplifies and organizes giving, allowing people to support the causes they care about on a flexible schedule, whether all at once, throughout the year or when urgent needs arise.
In 2024, charitable giving in the United States reached approximately $590 billion, according to the latest Giving USA report, reflecting a 3.3% increase after inflation. Individuals remained the driving force behind American philanthropy, contributing $392.45 billion and accounting for 66% of all giving. This momentum shows Americans are eager to give. There is real energy, commitment and generosity coming from everyday citizens.
DAFs are playing an increasingly significant role in this American generosity. The National Philanthropic Trust’s 2024 DAF Report showed that in 2023, donors contributed $59.43 billion to their funds and granted $54.77 billion to nonprofits, while total DAF assets grew nearly 10% to $251.52 billion across almost two million accounts.
One of the largest DAF sponsor organizations is Fidelity Charitable. In 2024, Fidelity donors recommended $14.9 billion in grants through nearly 2.7 million DAFs, supporting 213,000 nonprofits across local, national and international communities. Since 1991, Fidelity Charitable funds have reached nearly one-third of all U.S. charities, with education, human services, religion and disaster relief receiving significant support.
An example of a powerful community DAF sponsor is the San Angelo Area Foundation. Established in 2002, it provides major community investment through grants and scholarships in agriculture, music, education and support for students with physical disabilities. The foundation has awarded more than $175 million in community grants and held over $273 million in assets at the end of 2024. Their CEO Matt Lewis showcased the great work they do for our Free to Give campaign earlier this year.
DonorsTrust is also a strong example of a successful DAF sponsor organization. As one of the nation’s leading liberty-focused DAFs, DonorsTrust was founded to safeguard donor intent and advance the principles of limited government, personal responsibility and free enterprise, giving donors confidence their charitable contributions reflect their long term values and support a free society.
Since its founding in 1999 it has directed more than $2 billion to causes its donors value. Its grantmaking reaches economic research organizations, religious groups, foreign policy advocates, criminal justice reform efforts, hospitals, schools, camps and many other community-focused needs. Lawson Bader, the CEO of DonorsTrust, shared his reflections on the impact of DAFs as part of our Free to Give campaign earlier this year.
The season of giving is a simple yet powerful reminder that generosity is a value we must practice, not just preach. More than a century after the values that inspired it first took root, its message is still the same: each of us has the power to strengthen our communities through intentional giving.
A DAF is one of the most effective ways to honor that tradition. By opening a DAF, donors can give today and build the capacity to have an impact tomorrow, next year and long into the future. Whether your passion is hunger relief, education, the environment, community development or faith-based giving, a DAF ensures generosity isn’t limited to one season.
This Season of Giving, consider the most sustainable gift you can make: the decision to invest in lifelong generosity. Opening a DAF is a profound way to build a giving practice that endures.
