DAFpay for Nonprofits: How to Accept Donor-Advised Fund Gifts Online
If you’re new to the concept of DAFpay and are curious about how to accept donor-advised fund (DAF) donations, you’ve found the right place.
There’s a lot of buzz around DAFpay in the nonprofit world right now and it’s one of those giving trends you need to explore—and for good reason.
The average DAF gift in 2023 was over $4,600, making it 24x larger than the average credit card gift.
And as more donors explore tax-efficient giving vehicles like donor-advised funds, the ability to accept these gifts easily and securely online is becoming essential.
In the past, accepting DAFpay donations has been a challenge for many small and midsize nonprofit organizations.
That’s why we’re excited to share that we built a feature in partnership with Chariot for our clients who want to unlock high-value, low-friction gifts from DAF donors—the kind of supporters who are increasingly giving charitable funds via DAFpay to power their impact year-round.
In this article, we’ll walk you through everything you need to know:
Whether you’re brand new to donor-advised funds or just looking for a better way to handle them, you’ll leave this guide with a clear understanding—and the confidence to get started.
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What is DAFpay?
To understand DAFpay, it helps to start with the basics.
A donor-advised fund (DAF) is a type of charitable investment account that allows donors to contribute cash or non-cash assets (like mutual funds, cryptocurrency, or publicly traded securities) and receive an immediate tax deduction.
Those funds can then be granted to IRS-qualified nonprofits over time—whenever the donor is ready.
But here’s the catch: Until recently, giving from a DAF meant logging into a separate portal, searching for your nonprofit’s tax ID, and sending a check that might take weeks to arrive.
DAFpay changes all of that and makes it really easy.
It’s as easy and seamless as using a credit card. Your donors don’t even have to leave your donation page.
I’m going to walk you through all the basics of what DAFpay is and why it’s such a hot topic in nonprofit circles below in this guide—but first, I want to give you the good news:
According to our partners at Chariot, there’s $250B sitting in donor-advised funds and your organization deserves a piece of the pie.
And 4aGoodCause has made it incredibly easy to accept DAF donations online, even for your recurring monthly givers.
With DAFpay already built into your donation forms, donors can now contribute from their DAF account in just a few clicks—right alongside options like credit cards or bank transfers.
How to Unlock $250 Billion in Donor Advised Fund (DAF) Giving for Your Nonprofit
There’s no complicated manual setup on your end. Funds will arrive the same way they always have for your nonprofit. No guessing who gave what.
And better yet?
You’ll get the donor’s contact information, payout confirmation, and full gift details right away so you can thank them and begin stewardship immediately.
It’s smooth, secure, and works with over a thousand DAF sponsoring organizations, including Fidelity Charitable, Schwab, and Vanguard.
Here’s what your donor sees:
DAF donation checkout
From the donor’s perspective, it’s simple.
From your team’s perspective, it’s even simpler—because you get all the right info for record keeping, tax receipts, and donor stewardship without lifting a finger.
Fundraising software that feels like part of your team.
If you’re wondering how to actually find donors who use donor-advised funds, you’re not alone.
Many nonprofits assume DAFs are only for ultra-wealthy philanthropists or large institutions—and while that’s the majority of DAF donors, that’s not entirely the case anymore.
In fact, more and more everyday donors are opening DAF accounts through providers like Fidelity Charitable, Vanguard Charitable, and Schwab, especially as part of their estate planning or after receiving non-cash assets like real estate, private equity, or inherited stocks.
Here are five smart ways to start identifying and soliciting DAF donors:
This sounds simple, but visibility matters. Add a DAF option to your donation form (4aGoodCause’s DAFpay feature takes care of this automatically), and include a mention of DAFs in your:
Website footer
Giving pages
Year-end appeals
Social media posts
Email newsletters
Even a small “Did you know you can give through your DAF?” prompt can spark action.
4. Partner with financial advisors or community foundations
Financial professionals or community foundations help clients manage their charitable contributions and can become powerful referral sources.
Share your mission, provide marketing materials, and build relationships with those who advise on giving vehicles in your local community. That way, their clients can be informed how to directly support organizations in their area via donor advised funds.
Our DAFpay partner, Chariot, has a handy one-pager here that you can offer to donors about the benefits of giving with donor advised funds.
“
Working with 4aGC has been great! I would highly recommend. Our online monthly donations have gone up 300% since we started working with them.
Dave Andrews
KJOL
What DAFs can be used for
Donor-advised funds are designed to support qualified charitable organizations, but there are specific rules around how those funds can be used.
In general, a DAF grant can be used to support most types of charitable gifts to your nonprofit—including:
Unrestricted donations
Program-specific support
Annual fund gifts
Capital campaign contributions
Matching gift programs
Scholarships (as long as donors don’t select specific recipients)
But DAFs can’t be used for anything that provides a personal benefit to the donor.
That includes things like:
Event tickets or auction items
Memberships with perks
Raffle entries
Goods or services of any kind
So, for example, a donor can use their DAF to support your summer program for teens. But they can’t use their DAF to buy a ticket to your gala or pay for a sponsorship package that includes a table or ad.
To keep things simple and compliant, DAFpay includes built-in language that requires donors to affirm their gift follows IRS guidelines under the Internal Revenue Code. That means less back-and-forth for your team and a smoother giving process overall.
Have questions to make sure you get this right? It’s always a good idea to consult your finance team or a professional for tax advice. (We’re nonprofit fundraising experts at 4aGoodCause, not legal or tax pros!)
🤯Did you know?You don’t need to work harder to raise more. The average monthly donor gives $756 per year with the 4aGoodCause platform. Learn how the 4aGC Monthly Giving Toolkit helps you build a loyal base of recurring donors who are passionate about your cause.
Who uses DAFs?
Many DAF accounts are opened by high-net-worth individuals and families as part of their estate planning or long-term charitable giving strategies. But it’s incorrect to assume that high-net-worth donors are the only people who use DAFs.
But increasingly, DAFs are being used by:
Everyday donors with growing wealth or non-cash assets (like inherited stock, cryptocurrency, or real estate)
Financially savvy donors who want to plan their giving across multiple years
People who experience a high-income year and want to secure an immediate tax deduction, even if they’re not ready to select a nonprofit just yet
These donors contribute to their DAF account, receive a tax benefit right away, and then recommend DAF grants to their favorite charities over time.
“
Great company that helps get real results! 4aGoodCause is an excellent resource for non-profits who wish to maximize their fundraising campaign efforts and minimize the technical work of website landing pages, online payment systems, and donor record keeping.
Jonathan Klein
Director of Music, St Gregory the Great Episcopal Church
Here’s an example scenario:
Let’s say you’re the Director of Development at the Bruce Wayne Bat Sanctuary, a philanthropic organization that was (fictionally) developed to help study and protect bats in Gotham City.
Bruce Wayne Bat Sanctuary, meet prospective donor Lisa.
Lisa recently received a large bonus at work and sold some mutual funds she’d been holding for years. (Congrats, Lisa!) And guess what? She loves bats. (Congrats, Bat Sanctuary!)
Rather than scramble to decide where to give before year-end, she opened a DAF through Fidelity Charitable, contributed a portion of her bonus and converted mutual funds, and secured a tax deduction for this year.
Now, with her charitable funds sitting in an investment account (and growing in an investment fund), Lisa can take her time exploring causes she believes in.
When she finds the Bruce Wayne Bat Sanctuary, she can recommend a payout directly from her DAF.
Since Lisa’s a savvy donor (and she knows if she leaves a large amount of funds within her DAF account it will continue to accrue interest over time), she decides to sign up for the bat sanctuary’s monthly giving program at $450 a month, and is able to offer her recurring gift directly through her DAF account.
She also selects two more nonprofit organizations to support via their monthly giving programs.
And thanks to DAFpay, Lisa can now do this online in just a few clicks—without having to search for your organization’s tax ID, mail a check, or wait weeks to see her gift processed.
While DAFs are becoming more accessible to everyday donors, they’re especially popular with a few key groups:
Major donors who want to streamline their charitable giving and manage large gifts over time
Financially savvy philanthropists who are looking for flexible, strategic ways to support causes they love
Anyone who wants a simple, tax-efficient alternative to a private foundation without the administrative burden (like Lisa in the example above)
In short, a donor-advised fund makes it easier to plan giving in a way that matches the donor’s goals—whether that’s supporting multiple organizations, making a large charitable gift at year-end, or giving consistently over time.
There are several reasons donors choose to give through a DAF instead of writing a check or entering a credit card number. Here’s what makes DAFs such a powerful giving vehicle:
Immediate tax deduction: Donors can contribute to their DAF now—especially in a high-income year—and receive an instant tax benefit, even if they wait to support nonprofits later.
Simplicity: Managing a DAF is far easier than setting up a private foundation. There’s no paperwork, legal setup, or board meetings—just a simple account managed by a sponsoring organization.
Flexibility: Donors can support any number of tax-exempt organizations whenever they’re ready. They’re not locked into one charity or timeline.
Privacy: DAF holders can choose to give anonymously if they wish—something not always possible with other forms of giving.
Growth potential: The funds in a DAF can be invested in mutual funds, private equity, or other investment options, allowing their impact to grow over time before being distributed as DAF grants.
For many donors, a DAF becomes their central hub for charitable contributions, making giving more strategic over time.
Ready to accept DAF gifts the easy way?
DAFpay via 4aGoodCause makes it simple for your donors to give—and even simpler for your team to receive, track, and acknowledge donor-advised fund gifts online.
No extra tools. No extra logins. Just more high-value gifts from donors who care about your cause.
What makes DAFpay different from traditional DAF grant processes—and why does that matter for small nonprofits?
DAFpay eliminates the long, manual steps usually required to accept a donor-advised fund gift.
Instead of searching for your tax ID and mailing a check, donors can give directly through your donation page in just a few clicks. You get their name, email, and gift amount immediately—no guesswork or delays. For small teams, this means faster payouts and easier stewardship.
“
We are a small nonprofit with minimal staff so a platform like 4aGoodCause has provided us with a professional, streamlined system for online donations. Our rep is amazing and always responsive when we have questions or need assistance. I would highly recommend this platform!
Melanie R Carroll
Executive Director at Angel Flight SC
Is DAFpay just for one-time gifts, or can it support recurring giving too?
DAFpay can also support recurring giving, like your monthly giving program, in addition to one-time gifts. In fact, monthly giving from DAF donors allows for their remaining tax-free funds to accrue interest, effectively multiplying their ability to give over time.
If our monthly giving program includes incentives, can a donor still give monthly via DAFpay?
Yes, you can still accept DAFpay gifts from monthly donors if your program includes perks.
Most monthly giving programs are not traditional “membership” programs where your donors will receive products or services of substantial value or benefit, like access to a museum membership.
For most nonprofits running a monthly giving program, this won’t be an issue. But if you do offer tangible perks and they have a fair market value, you can opt DAF donors out of those benefits or apply the DAF donations to only the tax-deductible portion of the gift. The donor could still make a separate gift via another method to receive the perks.
How do I explain DAFpay to my board or leadership team as a strategic fundraising tool?
DAFpay unlocks access to a growing pool of charitable assets—over $250 billion held in donor-advised funds.
It simplifies the giving process, makes DAF gifts more visible, and allows you to capture high-value donations online. Best of all, it works seamlessly with your existing fundraising tools, so there’s no extra lift.
Is DAFpay safe for nonprofits?
Yes. 4aGoodCause’s DAFpay is powered by Chariot and integrates securely with major DAF sponsors like Fidelity, Schwab, and Vanguard. All transactions are encrypted, and donors confirm that their gift meets IRS rules. You’ll receive funds quickly and with fewer administrative headaches.
Can I accept DAFs online?
Absolutely. With DAFpay built into your 4aGoodCause donation form, donors can give from their DAF account just like they would with a credit card or bank transfer. It’s fast, easy, and requires no extra setup on your end.
Does DAFpay charge a separate fee?
There’s no fee for your nonprofit. Instead, a percentage fee is taken out of the transaction itself. There are no subscription fees or setup costs for your nonprofit to use DAFpay. Your donors can use DAFpay as a part of your 4aGoodCause platform without any additional upfront charges.
When a donation is made through DAFpay, a processing fee of 2.9% is applied to the transaction.
What steps should my organization take to accept donor-advised fund donations?
If you’re already using 4aGoodCause, you’re ready to go—DAFpay is built right in and every 4aGoodCause client gets access.
We recommend updating your website, emails, and giving materials to let donors know you accept DAF gifts. A simple mention can go a long way in surfacing hidden opportunities.
Can you track donor data with DAFpay?
Yes! Unlike traditional DAF checks, which may arrive anonymously, DAFpay provides you with the donor’s name, email, and gift amount right away.
This makes it easy to thank them, log the gift, and continue building the relationship.
How do I acknowledge a gift from a donor-advised fund?
You can send a regular thank-you email or letter, just like any other donation.
Be sure to include language that complies with IRS guidelines, such as noting that no goods or services were received in exchange for the gift.
What donor information does my organization receive when someone gives through DAFpay?
You’ll receive the donor’s name, email, donation amount, and the name of the sponsoring DAF organization. You’ll also be notified when the gift has been processed and paid out. This helps streamline record keeping and acknowledgment.
Ronald Pruitt
Ronald is the President and Founder of 4aGoodCause, the fundraising CRM that makes recurring, monthly giving a breeze for small nonprofits.
For over 25 years, Ronald has had the joy of doing what he loves, building online solutions that make a difference in the world. He’s helped raise millions of dollars online for small nonprofits across the country. Connect with Ronald on LinkedIn.
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