Donor-advised funds (DAFs) are no longer a niche tool for ultra-wealthy donors—they’re a fast-growing, fragmented ecosystem holding more than $326 billion in charitable assets and expanding at ~25–30% annually. In this episode of the Whole Whale Podcast, Mitch Stein, Head of Strategy at Chariot, breaks down what’s really happening inside the DAF economy: over 1,400 DAF programs, millions of households using them, payout rates that consistently exceed private foundations, and a surge in contributions driven by appreciated stock and late-year tax planning. The takeaway for nonprofits is clear: DAFs are becoming a mainstream giving vehicle, not an edge case, and ignoring them means ignoring where a growing share of charitable dollars now live.

We also dig into the friction problem—and why it matters. DAFs reduce the mental friction of giving by separating “how much to give” from “where to give,” but outdated workflows still create drop-off at the moment of donation. Chariot’s role is to remove that last mile of friction through shared infrastructure like DAF Pay, making it as easy to give from a DAF as using Apple Pay. The result: higher conversion, larger gift sizes, and more money actually moving to nonprofits. For fundraisers, the message is practical and urgent—get DAF-ready, normalize DAF giving, and stop treating it like a rare edge case. The money is there. The question is whether your organization is easy to give to.

Sector Data & Reports

• Annual DAF Report 2025 — Donor Advised Fund Research Collaborative (latest US DAF stats including assets, contributions, payouts, and account counts) https://www.dafresearchcollaborative.org/annual-daf-report/2025

• DAF & Payout Rate Insights — Chariot Resource on 2025 DAF Report for Fundraisers (breakdown of payout rates vs private foundations, DAF trends) https://www.givechariot.com/resources/insights/7-top-takeaways-from-the-new-2025-daf-report-for-nonprofit-fundraisers

• Annual Donor Advised Fund Report Overview (NPT/DAF Research Collaborative) https://www.nptrust.org/reports/daf-report/

📈 Supplemental News & Context

• Inside Philanthropy – DAF Growth Story & Trends (context on how assets and grants are growing) https://www.insidephilanthropy.com/home/inside-the-explosive-growth-of-donor-advised-funds

• AP News – Fidelity Charitable Grants Data (Nonprofit relevance) https://apnews.com/article/7a483a4f69115f467ecfb1c4348bbdc3

🧠 Practical & Community Resources

• Give Chariot – DAF Checkout + Resources for Nonprofits — Chariot’s official site with platform info.

• DAFgiving360 Organization — large independent DAF sponsor with giving impact stats: https://www.dafgiving360.org/

📌 Other Helpful References

• DonorsTrust (Wikipedia) — example of a standalone donor-advised fund organization: https://en.wikipedia.org/wiki/DonorsTrust

AI's Impact on Nonprofit Visibility and the Changing Landscape of Foundation Support

This week's episode of the Nonprofit Newsfeed, the hosts delve into the evolving dynamics of AI's influence on nonprofit visibility and the current state of foundation support.

Main Topics:

• AI's Knowledge Windows and Nonprofit Visibility: George and Nick discuss a new beta feature from OpenAI's ChatGPT called "knowledge windows." This feature presents information about organizations directly within the AI interface, potentially reducing website traffic as users get essential details without needing to visit the source. This development could significantly alter how nonprofits engage with potential donors and supporters, as AI becomes the gatekeeper of information.

• Foundation Support and Nonprofit Perception Gap: A report from the Center for Effective Philanthropy highlights a significant perception gap between foundations and nonprofits. While 93% of foundation leaders believe they understand grantee challenges, only 54% of nonprofits agree. The report also notes that foundation responses have weakened post-COVID, despite increased demand for nonprofit services.

AI Ads: A New Frontier for Nonprofits

This week on the Nonprofit Newsfeed the hosts dive into a game-changing announcement from OpenAI that could revolutionize nonprofit marketing strategies. OpenAI has revealed plans to pilot advertising on ChatGPT, marking a significant shift in how nonprofits might engage with audiences.

Key Highlights:

• OpenAI's Announcement: OpenAI is testing ads in select markets for ChatGPT's free and low-cost tiers, aiming to provide more users with access to its AI tools without usage limits.
• Implications for Nonprofits: With approximately 800 million weekly active users, ChatGPT offers nonprofits a vast audience for targeted advertising. This presents an unprecedented opportunity to engage users during meaningful conversations across diverse contexts, from education to health advice.
• Concerns and Opportunities: While the prospect of ads in AI raises concerns about data privacy and the influence on AI-generated content, it also opens doors for nonprofits to reach audiences in innovative ways. The challenge will be crafting ad content that complements AI interactions without disrupting user trust.
• Transparency and Analytics: The move towards advertising may also introduce valuable analytics tools, enabling nonprofits to gain insights into user behavior and optimize their engagement strategies.

Nonprofit Wellness Index Update: The podcast also highlights Whole Whale's Nonprofit Wellness Index, which tracks sector health through job postings, layoffs, and ad spending. December's index hit a record high, indicating a positive rebound from previous lows, suggesting a revitalized nonprofit sector.

Feel-Good Story: In a lighter segment, the hosts share a unique fundraising initiative from an Alaskan bird conservation group. For Valentine's Day, donors can name a rat after an ex, which will then be fed to a bird of prey, offering both cathartic satisfaction and support for wildlife conservation.