Why DAFs Matter More Than You Think

roland00047
Jul 21
3 min read

Community Foundations as Philanthropic Partners

**From the Desk of Rolando D. Rodriguez, M.S., CFRE**

Most of us have heard about donor-advised funds (DAFs), but too often we treat them like some niche financial tool used only by ultra-wealthy philanthropists.

The truth? DAFs are now one of the fastest-growing vehicles for charitable giving in the U.S., with over $250 billion in assets and growing every year.

And yet, many nonprofits still overlook them—and many donors don’t even realize they’re an option.

That’s a missed opportunity on both sides.

What’s a DAF—and Why Should You Care?

Think of a DAF as a charitable giving account that a donor can control. You contribute assets (cash, stock, even crypto), get an immediate tax deduction, and then recommend grants over time to the nonprofits you care about.

You can give anonymously or with recognition. You can give on your schedule—immediately or over the years. And contributions grow tax-free while you decide where to give; there are no annual minimum payout requirements!

For donors, donor-advised funds are a flexible, simple, and low-maintenance way to manage philanthropy while creating a family legacy of giving.

And yet - what is one of the most critical decisions a donor can make?

Where they should open their DAF!

The Power of Community Foundations

While national DAF sponsors, such as Fidelity, Schwab, and Vanguard, play a crucial role in the philanthropic landscape, their systems can often feel impersonal. I can’t count how many times my nonprofit clients have received a check from a national DAF sponsor with no donor name at all—just a generic transmittal note and a mailing address for the financial firm. It makes meaningful stewardship nearly impossible.

That's Where Community Foundations Really Shine!

Over the past few years, I’ve had the privilege of working closely with the Coral Gables Community Foundation, and I’ve seen firsthand how they’re helping donors make more intelligent and impactful choices. They’re not just administrators—they’re partners in giving.

Community foundations don’t just process donations. They:

Offer personalized philanthropic guidance
Understand the most urgent local needs
Build bridges between donors and nonprofits
Help donors connect their values with real, meaningful impact

Sometimes community foundations even offer opportunities for organizations to share their impact directly with their boards, made up of engaged community leaders and generous fundholders!

In South Florida, we’re fortunate to have several supportive community foundations, including:

Coral Gables Community Foundation
Miami Foundation
Key Biscayne Community Foundation
Ocean Reef Community Foundation
National Christian Foundation
Community Foundation of Broward

Most communities have one or more community foundations that promote philanthropy and community benefit. Each brings deep roots in their community and a real commitment to making generosity work better for everyone.

When a Donor Advised Fund is managed through a community foundation, you gain more than just financial stewardship—you benefit from human connection, local expertise, and thoughtful guidance. Donors and the organizations they support may also receive invitations to events and giving circles, as well as access to a trusted partner who can introduce you to meaningful causes you may never have discovered on your own.

✅ Final Thought

Donor Advised Funds aren’t just a financial tool. They’re a doorway to more profound generosity—if we take the time to understand them and, more importantly, to connect with the people behind them.

If you’re a nonprofit leader, build a relationship with your local community foundation. They can help you reach the donors who are already inclined to care—and sometimes even invite you to present directly to those already giving.

And if you’re a donor, or thinking about becoming one—consider the power of a DAF, especially with a partner who knows your community, understands your goals, and wants to help you make your giving matter.