Top 3 Takeaways from This Year’s DAF Report

The 2025 Annual DAF Report, produced by the Donor Advised Fund Research Collaborative (DAFRC), was released today! This intensive report shows a sector accelerating in size and complexity.

Here are the top takeaways to know:

1. DAF Giving Is Up Across Every Major Indicator

2024 delivered record-breaking numbers across the board:

• Contributions jumped 37.3% to $89.64B

• Grants rose 19%, reaching $64.89B

• Assets grew 27.5% to $326.45B

• The payout rate increased to 25.3%

The message is unmistakable: donors are relying on DAFs more intensely than ever, and giving from donor-advised fund is a core element of contributed income for the nonprofit sector.

2. More DAF Accounts and the Mix is Shifting

The number of DAF accounts climbed 18.4% to 3.56M. This is fueled largely by accounts at what the report calls “donation processors,” a term that encompasses organizations like DAF sponsors that facilitate workplace giving. Outside of donation processors, growth continued at 6.9%.

This means:

• Legacy national sponsors still move the largest volume of dollars.

• Donation processors have significantly more total DAF accounts.

• Community foundations and single-issue sponsors continue steady, mission-driven growth.

The ecosystem is expanding and diversifying. At Daffodil, we believe this is timely and urgent, especially as philanthropy and the financial sector prepare for $18 trillion to transfer to charities during the Great Wealth Transfer.

3. DAFs Now Represent a Major Share of Individual Giving

DAF contributions accounted for 15.1% of total charitable giving and nearly 23% of individual giving in 2024. That’s a dramatic rise from 2020, when DAFs represented only 10% of total giving.

DAFs are definitely not a fringe vehicle for major donors.

Looking Ahead - Daffodil’s Perspective

The 2025 DAF Report gives us the clearest view yet of the sector’s growth: more assets, more accounts, and deeper donor reliance on DAFs. But it also shows that today’s reporting still rests on structures built for an earlier era.

Growth alone doesn’t answer the real question: what does a better DAF look like in 2025 and beyond?

A better DAF delivers real-time visibility, secure and fast payments, clear insight into where dollars move, and a donor experience that reflects how people expect to engage with their giving. It creates value for nonprofits, helping them discover new supporters, understand donor patterns, and amplify their impact.

That’s where Daffodil comes in. We bring real-time movement, visibility, and insight directly into the giving experience. Curious? Reach out anytime.