Chariot: Revolutionizing Philanthropy with Donor Advised Funds (DAFs)

I met Briel when I worked for the Harold Grinspoon Foundation, and she was at Free Will. With our shared passion for helping nonprofits, we’ve stayed in touch. When Briel started working at Chariot, I was super excited! I’ve always been a huge fan of donor-advised funds (DAFs), and I love how Chariot champions DAFs while making giving through them easier.

Chariot’s mission is simple: to help people become more philanthropic and enable nonprofits to receive larger and more consistent donations. As someone who has spent years in the nonprofit world, I can’t emphasize enough how transformative DAFs have been for both donors and nonprofits. And that’s where Chariot comes in—providing an easy, efficient platform for nonprofits to tap into this exponentially growing revenue stream.

Why DAFs Are a Game Changer for Nonprofits

For years, there has been a misconception that DAFs reduce donations to nonprofits, with funds sitting idle in accounts rather than being put to good use. But the reality is that DAFs are the fastest-growing vehicle in philanthropy. DAF revenue is growing *214 times faster than non-DAF revenue. When a donor begins using a DAF, their annual giving increases by an impressive 96%! It’s clear that DAFs are a powerful tool for both retaining and acquiring donors.

The number of DAF donors continues to rise, while traditional donor participation has been declining for the past two decades. This demonstrates that DAFs are not just a passing trend—they are a key driver of donor engagement and growth for nonprofits. The increased giving capacity of DAF users is especially evident in the size of the donations. DAF gifts are 10 times larger than those made by non-DAF donors, creating a significant opportunity for organizations to raise more.

Chariot’s Role in Unlocking DAF Potential

Chariot is more than just a tool for processing DAF donations—it’s a comprehensive solution that enhances fundraising efforts. DAFpay, Chariot’s donor-advised fund payment option, is seamlessly integrated into donation forms, making it easier for donors to give directly from their DAFs. This is a win for both donors, who can give with ease, and nonprofits, who receive the funds quickly with crucial donor information.

One of the most impressive outcomes of Chariot’s integration of DAFpay is its impact on donor acquisition. For example, the Andrew McDonough B+ Foundation saw 76% of DAFpay donors as first-time donors—people who had never given to the organization before. This shows that DAFpay is not just a payment option; it’s a powerful donor acquisition tool that helps nonprofits bring in new supporters with higher giving capacity.

The average DAFpay gift was $529, seven times larger than the average non-DAFpay gift. Additionally, when B+ Foundation donors switched from other payment methods to DAFpay, their gift size tripled on average. This is just one example of how DAFpay is driving significant increases in both the frequency and size of donations, helping nonprofits expand their donor base and funding.

The Bigger Picture: How DAFs Are Transforming Giving

The numbers speak for themselves. DAFs are the fastest-growing source of revenue in the philanthropic sector, with over $52 billion donated annually by more than 3 million DAF users. This growth shows no signs of slowing down, with DAF donations increasing by 20% per year on average since 2017.

Chariot is tapping into this powerful trend. By simplifying the DAF donation process, Chariot is helping nonprofits raise more money, discover new major donors, and improve their stewardship. Through DAFpay, nonprofits can easily capture important donor information, like names and emails, which are often missing from traditional DAF gifts. This allows nonprofits to build relationships with donors right away, improving retention and engagement.

DAFpay isn’t just a tool for large nonprofits; it’s a game-changer for organizations of all sizes. With the average DAFpay gift size of over $1,300, and the median gift size of $250, DAFpay ensures that donors at every level can make a meaningful contribution.

Why I’m Excited About DAFpay

As a long-time advocate for DAFs, I’m thrilled to see the difference Chariot is making in the world of philanthropy. By integrating DAFpay into donation forms, Chariot has unlocked a new avenue for nonprofits to increase revenue, reach new donors, and grow their impact. The ease of use, combined with the larger gift sizes and faster stewardship, makes DAFpay a powerful tool for any nonprofit looking to maximize their fundraising potential.

Bright Future for Nonprofits

As DAFs continue to grow in popularity, Chariot is positioned to be a vital partner for nonprofits seeking to unlock new opportunities and build stronger, more sustainable funding streams. If you are looking for more information on Chariot or DAFs in general, checkout their website: https://www.givechariot.com/

*Statistical/numerical data provided by Chariot.