Donor Advised Funds (DAFs) are increasing in popularity as a tool for families to manage their tithing and kingdom giving. In 2024, over $60 billion was granted to charities and ministry organizations from DAFs, including local churches.
What is a Donor Advised Fund?
Think of a DAF as a dedicated stewardship account or giving investment account. A donor makes a contribution to the fund and receives an immediate tax deduction. The assets grow tax-free until the donor “advises” or recommends grants from the fund to various ministries over time.
Why DAFs Matter for Your Church
- Generosity – Donors who use DAFs tend to be generous, committed, and consistent givers.
- Reliability – Most DAFs allow donors to set up recurring gifts, providing a steady stream of support for churches.
- Resiliency – Because DAFs are funded in advance, resources remain available to continue giving even during economic downturns.
- Simplicity – When a church receives a DAF distribution, the donor has already received their tax deduction from the DAF sponsor. The church does not need to send a tax receipt; however, an acknowledgement or “thank you” would be appropriate.
- Variety – DAFs accept a wide variety of gifts, not just cash. Donors can give any appreciated asset (securities, real estate, business interests, etc.) and then make grants with the proceeds. This allows donors to give out of their wealth, not just their wallet, and provides a way for ministries to easily benefit from non-cash gifts.
- Intentionality – DAFs help families practice intentional stewardship and teach generosity to future generations. Donors can name successors (often children) to continue making grants after the original donors pass away.
Tips for Churches
- Update Your Website – Add a simple note on your giving page such as, “We welcome gifts via donor advised funds.”
- Generosity Conversations – Talk about donor advised funds and other creative ways to give when you have generosity and stewardship conversations.
- Education – Educate staff and donors alike on the unique advantages of donor advised funds.
How We Can Help
DAFs are available to your congregation through FM Financial’s partnership with GuideStream Donor Advised Funds (www.guidestreamdaf.org). Their online donor portal makes giving simple and efficient. We are also available to answer any questions and provide educational materials for your church.
For More Information
If you are interested in having a conversation about DAFs or other creative ways to give, please contact one of our Directors of Regional Partnerships:
EAST – Steven “Mac” Macaluso / smacaluso@fmfinancial.org / 585-290-6314
WEST – Carol Duberowski / cduberowski@fmfinanicial.org / 562-310-0148