Podcast Summary

What the Fundraising, Episode 278: How Donor-Advised Funds Can Supercharge Your Fundraising

Host: Mallory Erickson
Guest: Mitch Stein (Head of Strategy, Chariot)
Released: January 13, 2026

Episode Overview

In this episode, Mallory Erickson sits down with Mitch Stein, Head of Strategy at Chariot and expert on donor-advised funds (DAFs), to demystify DAFs and outline their potential to transform nonprofit fundraising. Their discussion blends practical advice, data-driven insights, and psychological perspectives to help leaders and fundraisers harness DAFs as a strategic advantage. Together, they bust persistent myths, provide actionable stewardship recommendations, and explore how fundraisers can better connect with DAF donors on both relational and operational levels.

Key Discussion Points & Insights

1. DAFs: A Bright Spot Amid Nonprofit Challenges (03:10)

• Mitch describes Chariot’s focus on making DAF giving easier for nonprofits and donors by developing tools like DAF Pay.
• He identifies DAF growth as both an opportunity and a challenge:

  “One of the biggest bright spots in terms of revenue is the growth in donor-advised fund giving. But that has also come with a lot of frustrations and challenges for nonprofit fundraisers.” (Mitch, 03:40)

2. The Myth of Widespread Donor Anonymity (05:49)

• Mallory and Mitch address the common misconception that most DAF gifts are anonymous.
• Data shows only about 3–4% of DAF gifts are truly anonymous; many more provide limited, but ambiguous, information.

  “Overwhelming anonymity is a myth. But I think that’s just the language a lot of fundraisers use to describe the not super useful data they get around these gifts.” (Mitch, 07:46)

3. Why Donors Choose DAFs & What It Means for Nonprofits (08:48)

• Mitch dispels the myth that DAFs are only for the ultra-wealthy.

  “69% of [DAF gifts] were below $1,000. So it’s a broad spectrum of people that are using DAFs.” (Mitch, summarizing Chariot’s research, 08:48)

• Donor motivations for opening DAFs include:
  • Streamlined giving: One account, consolidated receipts, easier planning
  • Accountability: Pre-funding increases likelihood of reaching personal donation goals
  • Tax strategy: Especially at higher giving levels, DAFs facilitate strategic donations using appreciated assets
• Donor complaints often stem from poor stewardship:

  “I never even heard from the organization again after I made my gift. ... It doesn’t make them stop giving with their DAF. It just makes them give somewhere else.” (Mitch, 12:05)

4. The Psychology Behind DAF Giving (13:35)

• Mallory probes into how DAFs affect donor psychology and behavior.
• Mitch likens having a DAF to having a “gift card” for charity, dramatically lowering emotional friction for making gifts:

  “You’re looking for opportunities to spend it. ... I am so much faster to action on those emails from friends. A crisis is happening, I quickly go to my DAF and do something about it.” (Mitch, 15:43)

• Actionable Advice:

  “My number one piece of advice for nonprofit fundraisers is to get your own DAF account, because then you’ll get to feel this firsthand.” (Mitch, 13:35)

5. Navigating “Analysis Paralysis” in Large DAFs (18:16)

• Mitch recommends lowering stakes for donors paralyzed by big decisions:
  • Suggest making smaller exploratory grants to get comfortable
  • Facilitate engagement without pressure of single, large decisions
• Memorable analogy:

  “It took the scariness out of it to just take the leap. ... I think that applies to so many parts of our lives. But if you can be a bit of a guide to a donor to lower the stakes ... I think is a huge win for both of you.” (Mitch, 20:16)

6. Stewarding DAF Donors Strategically (21:44)

• When DAF gift information allows, adapt stewardship strategy:

  • Thank promptly and personally (“as soon as you can”—it’s rare and memorable!)
  • Acknowledge their giving method and DAF provider—shows you’re paying attention and invested
  • Recognize capacity: Even small DAF gifts indicate high potential; these donors should be cultivated as prospective major donors

    “Even if you get a $100 gift, my personal opinion, if you have the bandwidth, is to put them in a similar cycle as you would a major donor.” (Mitch, 23:36)

• Practical Tip: Audit your data and systematize DAF tracking to properly identify and steward DAF donors.

Notable Quotes & Memorable Moments

• On DAF popularity and demystification

  “If this is an intimidating topic for you, the number one way to make it not intimidating is to do it yourself.”
  (Mitch, 00:00 & repeated 13:35)

• On fundraiser perspectives about anonymity

  “A lot of fundraisers would be very shocked by that because that doesn’t feel true to their experience.”
  (Mitch, 06:05)

• On donor frustration from poor stewardship

  “There are nonprofits who think that they are not supposed to reach out to donors that give from a DAF. ... It doesn’t make them stop giving with their DAF. It just makes them give somewhere else.”
  (Mitch, 12:05)

• On donor experience with DAFs

  “It genuinely feels like your charitable fun money. Like the stakes are so low, it’s already set aside for this specific purpose. … Spend it.”
  (Mitch, 15:11)

• On capacity of DAF donors

  “The average DAF account is $147,000 in assets and the median ... is 25k. ... My personal opinion ... is to put them in a similar cycle as you would a major donor.”
  (Mitch, 23:00)

Timestamps for Key Segments

• 03:10 — Mitch’s background and Chariot’s mission
• 05:49 — Exploring the myth of DAF anonymity
• 08:48 — DAF donor motivations and Chariot research findings
• 13:35 — The psychology of giving through DAFs; “get your own DAF!” advice
• 18:16 — Addressing donor anxiety and “analysis paralysis” with large DAF balances
• 21:44 — Stewardship recommendations for DAF donors
• 23:36 — Argument for treating DAF donors as major donor prospects
• 24:54 — Where to find Mitch and Chariot resources

Actionable Takeaways

• Experience DAFs Firsthand: Open an account yourself to inform donor conversations.
• Audit Data Systems for DAF Tracking: Systematically identify DAF gifts to enable effective stewardship.
• Prompt, Personal Stewardship: Immediately thank DAF donors and acknowledge their giving method/provider.
• Treat DAF Donors as High-Capacity Prospects: Even small gifts can indicate large philanthropic potential.
• Educate and Guide Donors Facing Decision Fatigue: Lower the stakes, suggest smaller grants, and facilitate exploration.

Connect with Mitch Stein & Chariot

• Mitch Stein: LinkedIn
• Learn about Chariot: givechariot.com
• Request DAF Pay on your online platform or reach out to Chariot for resources.

For more detailed notes, resources, and tools from this episode, visit: MalloryErickson.com/Podcast