Chariot makes it easy for nonprofits to accept Donor Advised Funds as gifts to their organization.
What Does Chariot Do?
Thanks to our partnership with Chariot, Donor Wrangler’s customers are able to accept Donor Advised Fund donations online.
Here is why this is so valuable to you:
What is a Donor Advised Fund?
A donor advised fund (DAF) is a specialized financial account used for charitable giving. It allows individuals to make a charitable contribution, receive an immediate tax deduction and then make grants to 501(c)(3) organizations over time. The money in a DAF can also grow tax free and be donated at any time in the future – there are no time limits or distribution requirements for DAFs today. Once money is in a DAF account, it has already been set aside for charity and cannot be withdrawn for other purposes.
How much money is really available through DAFs?
According to a 2022 report, there is an estimated $234 Billion in charitable assets available in DAFs just waiting to be donated. This number is only going to grow. The same report shows that the number of DAF accounts has tripled over the last four years. DAFs now make up nearly 10% of annual giving in the United States. All of this means that DAFs are the fastest growing vehicle in philanthropy today.
Are your donors already using DAFs?
As the number of DAF accounts grow, it is likely that your current and future donors are already using DAFs. DAFs are not just for the old and rich. The fastest growing age group using DAFs is younger than 40. Additionally, a 2023 reportfound that 56% of DAF account balances are under $25k.These donors are not just sitting on these assets. They want to donate to charities. People with DAFs contribute more than 11 grants per year, with an average grant size of nearly $5k. It’s safe to say that many of your contributors are already using DAFs and would love to contribute to your organization using their accounts.
That’s where Donor Wrangler’s integration with Chariot can help!
When you enable Chariot’s Donor Advised Fund payments, you will have a new payment button available for your donation forms.
This button allows donors to issue a grant directly from their DAF account to your organization with just 3 clicks. It only takes 15 seconds!