Nonprofit Nation with Julia Campbell

Episode: Why Nonprofits Need To Embrace DAFs with Mitch Stein

Date: December 10, 2025
Guest: Mitch Stein, Head of Strategy at Chariot

Episode Overview

In this episode, Julia Campbell interviews Mitch Stein, Head of Strategy at Chariot, about the rising importance and potential of Donor Advised Funds (DAFs) for nonprofits. The discussion demystifies DAFs, dispels prevalent misconceptions, and provides actionable strategies for fundraising professionals to better leverage these giving vehicles. Mitch draws on his personal journey and Chariot’s latest data to underline why DAFs are no longer just for the ultra-wealthy, but are an essential component of today’s nonprofit fundraising mix.

Key Discussion Points & Insights

1. Mitch Stein’s Background & Introduction to DAFs

• Personal journey: Mitch recounts how his investment banking background unexpectedly led him into nonprofit fundraising via a peer-to-peer bike ride for AIDS research.
• First encounter with DAFs:

  "One of the partners I worked with donated $10,000 from the staff. My first reaction was to reach out and ask if he made a mistake... And that is when he explained to me, 'Oh no, I have this donor advised fund.'" — Mitch Stein (03:23)

• He highlights the friction and complexity of soliciting a DAF gift and how this problem inspired his work with Chariot.

2. What Exactly is a Donor Advised Fund (DAF)?

• Definition:

  • "A donor advice fund is a charitable giving account. It is very similar to what a 401k does for someone's retirement... It's a tax advantage way to segregate funds and keep them invested in the market for a specific restricted use." — Mitch Stein (06:50)

• How DAFs work:

  • Donors contribute cash or assets, receive tax benefits up front, and then make grants to nonprofits over time.
  • Once funds enter a DAF, they’re irrevocably committed to charity.

• DAFs for all:

  • "There are some that are zero minimum to get started. You can open it and put $20 in... The largest daft providers...have made them way more accessible." — Mitch Stein (09:00)
  • While some DAFs have high minimums (e.g., Vanguard at $25,000), most do not.

3. Common Myths and Misconceptions about DAFs

• “DAFs are only for the wealthy”—FALSE:

  • "You've hit on the single biggest one already..." — Mitch Stein (10:17)
  • Even everyday donors can have DAFs, especially as minimums have plummeted.

• A tool for greater intentionality:

  • DAFs help donors keep track of their giving and become more strategic.
  • "It really streamlined my giving because we all have that memory of rifling through our inbox to try to find receipts..." — Mitch Stein (11:48)

• Employee benefit:

  • Mitch highlights DAFs as a better model than traditional donation matching at workplaces.

    "We get up to $200 a month matched into our DAF account...every month I am investing $400...for my giving." (12:43)

4. Research Findings: DAF Donors Are Highly Valuable

• Greater loyalty & generosity:

  • "DAF donors showed 13 percentage points higher retention than non-DAF donors." — Julia Campbell referencing Chariot’s report (13:48)
  • Donors with DAFs are more intentional, engaged, and likely to give larger or more frequent gifts.

• Stewardship tips:

  • Key: Focus on the relationship with the individual donor, not the DAF sponsor or foundation.
  • Always thank and engage the recommender even if the gift comes to you through a third party.

5. Digital Fundraising Strategies

• DAFs are a digital donor strategy:

  • DAFs are no longer relegated to planned giving; over two-thirds of gifts via DAFs are under $1,000.

    "69% of the gifts were $1,000 or less. So that is such a prime candidate for your digital fundraising efforts." — Mitch Stein (17:56)

• Reduce friction:

  • Make it explicit on your website, forms, and digital materials: "You can use your donor advised fund here."
  • Include DAF payment options, FAQs, and dedicated landing pages.
  • Mitch: "Everyone should be on the lookout. Everyone should be DAF hunting." (20:43)

• Multi-channel promotion:

  • Text messages, emails, direct mail linked to digital experience, and social prompts all help.
  • "Text messages were really effective in alerting someone...their conversion rate of doing so digitally was very high." — Mitch Stein (21:11)

6. DAFs Are Not Just for One Demographic

• Generational spread:
  • DAF adopters are getting younger, especially with tech-forward providers like Daffy — median age 40s.
  • Community foundation DAFs skew older, higher-minimums. Commercial ones (Fidelity, Schwab) median age low 50s.

    "It's definitely trending downward and I think more young people [are] getting involved." — Mitch Stein (24:53)

7. Essential Data Practices

• Importance of tracking DAF gifts:
  • "How quickly this has become a major segment of fundraising revenue...now it’s really critical because you can’t test the impact or change strategies if you don’t have a good handle on the data." — Mitch Stein (25:38)
  • Ensure gifts are coded and tracked properly in your CRM for accurate analysis and stewardship.

8. How Chariot Helps Nonprofits

• Integrated DAF payment solution:
  • Chariot partners with fundraising platforms to offer “Pay with your DAF” checkout options and automates grant payments with full donor information.
  • "We provide a payment option for how people can pay with their DAF directly on your donation form..." — Mitch Stein (27:29)

9. Future Trends in DAFs

• Mass adoption approaching: GoFundMe now launches a DAF, heading towards millions more DAF owners.
• Potential:

  "There are around 2 million DAF accounts...in the next five years that could be 5 million...Especially when you made that comparison to 401ks." — Mitch Stein (29:15)

10. Actionable Advice for Nonprofits

• Immediate steps:

  • Put your EIN somewhere easily findable on your website (footer, about page, donate page).

    "If it takes you more than 10 seconds, you've just lost a DAF donor." — Mitch Stein (30:55)

  • Mention DAF giving in year-end emails and on web pages.
  • If your platform offers DAF Pay, enable it.
  • Claim your Chariot account for faster processing/stewardship.

• Tell donor stories:

  • Feature a DAF donor’s story to make this giving channel approachable and visible.
  • "Have you even shared a story about a recurring giving donor? ...Have you even told people it’s possible?" — Julia Campbell (32:29)

• Staff comfort:

  • Encourage staff to open their own DAF account for firsthand experience, making donor conversations easier and more authentic.

Notable Quotes & Memorable Moments

• On misconceptions:

  “Oh, this is just a tool for super wealthy people.” — Mitch Stein (10:17)

• On DAF stewardship:

  "Focus on the individual that recommended that grant...you want to thank them directly." — Mitch Stein (16:57)

• On digital readiness:

  "These donors are all digital by nature. That’s how they have to complete this gift." — Mitch Stein (22:36)

• On taking action:

  "Go to your website right now and try to find your own EIN. If it takes you more than 10 seconds, you’ve just lost a DAF donor." — Mitch Stein (30:55) "One of the easiest ways to get more comfortable is open your own DAF account...that will just be really powerful in donor conversations." — Mitch Stein (34:40)

Timestamps for Key Segments

• [03:23] Mitch’s first-hand introduction to DAFs as a fundraiser
• [06:50] Clear explanation: What is a DAF?
• [10:17] Common myths about DAFs
• [13:48] Research: DAF donors are more loyal
• [16:57] Best practices in DAF stewardship
• [17:56] DAFs and digital fundraising synergy
• [21:11] Multi-channel promotion strategies (text, email, web)
• [24:53] Generational range and trends in DAF adopters
• [25:38] Data hygiene and DAF tracking
• [27:29] How Chariot supports nonprofits
• [29:15] Future: DAF mass adoption and scale
• [30:55] Simple actions nonprofits can take today
• [34:40] Encourage staff to try DAFs first-hand

Conclusion

This timely and practical discussion equips nonprofit professionals with the clarity and urgency needed to embrace DAFs not as a future trend, but as a mainstream and essential fundraising channel. Mitch and Julia highlight both simple tactical steps and deeper shifts in stewardship and strategy, ensuring any nonprofit can immediately capitalize on the growth of DAF giving.