The Advisor’s Guide to Building Trust with DAF Donors

Many high-net-worth individuals (HNWI) value giving back, and philanthropy is increasingly a factor in selecting their advisors. Research has even shown that one in three HNWIs is more likely to choose an advisor knowledgeable about charitable giving.

This matters because donor-advised funds (DAFs) are now the fastest-growing charitable giving vehicle in the U.S., representing a substantial share of annual contributions. The average DAF donor household reports income of more than $1.3 million, positioning these donors as a key client demographic for financial and wealth advisors and community foundations.

To meet this moment, more financial and wealth advisors and foundation program officers are expanding their philanthropic expertise. By understanding donor preferences and motivations, advisors can build trust, strengthen client relationships, and add real value.

Giving Compass published a report in collaboration with Dr. Sara Konrath of the Lilly Family School of Philanthropy about DAF donor motivations and preferences in charitable giving. The report was based on surveys of DAF donors who used their DAF to donate within the past year. The report, “Donor Satisfaction and Unlocking Public Sector Funding from DAFs” along with other research initiatives, offers key insights for advisors into donor motivations, decision-making, and opportunities for guidance.

Key Findings for Advisors

Power of Proximity

One of the clearest themes from our research is that proximity plays an outsized role in donor decision-making. Donors are more inclined to give locally, with 69% reporting they would rather support organizations in their own communities than national nonprofits. For advisors, this presents a powerful opportunity. By identifying and recommending impactful local organizations, you can help clients act on their preference for nearby giving while deepening your role as a trusted guide. 

Proximity also shows up in the social sphere. Eight in ten donors said they are more likely to contribute when a family member or friend recommends a nonprofit. This means advisors can leverage client networks — asking who in their circle is engaged with causes — to help uncover new opportunities for giving that resonate personally.

How Data Shapes Decisions

Our findings also confirm donors make different choices when given more and better information. When donors can access robust data, they can align their giving more closely with their values, such as giving to locally-led, grassroots organizations. Yet, visibility remains a barrier to funding for many, and approximately 88% of U.S. nonprofits operate on budgets under $500,000. 

Advisors who can point clients toward curated data sources that highlight these smaller organizations help level the playing field. In one recent evaluation, donors using Guide to Good — Giving Compass’ natural language, AI-powered search tool for giving — gave to nonprofits nearly four times smaller than those identified through general internet searches, and more than a third increased their overall giving. 

Incorporating different data formats, such as video, can also make causes more tangible. In our study, when donors saw a nonprofit video as short as 40 seconds, it increased their willingness to give by 15%, underscoring how richer formats can humanize impact and nudge action even among experienced philanthropists.

DAF Donors are Impact-Driven

Finally, our study revealed that impact is the central lens through which DAF donors make decisions. Eighty-one percent of donors reported concerns about nonprofit transparency and the ability to understand the outcomes of their giving. Advisors who can articulate impact are far more likely to build trust. 

Tailoring philanthropic conversations requires understanding how clients personally define impact. In our survey, some of the measures donors value are lives improved (27%), missions advanced (22%), and long-term systemic change (19%). 

However, those impact metrics may not fully encapsulate how donors want to make a difference. Some donors may value policy change, others grassroots organizing, and still others direct services. Asking questions can help identify these preferences. Tools such as the Giving Styles Quiz provide a framework for these conversations by offering clients a clearer sense of how their values align with different ways of giving. By helping clients reflect on and articulate what “impact” means to them, advisors strengthen the relationship and ensure that charitable investments feel both strategic and personally fulfilling.

What This Means for Advisors

As a trusted advisor, your role extends beyond wealth management. You are a partner in your clients’ vision for change. By integrating philanthropic insights, surfacing overlooked opportunities, and providing tools that match giving with values, you can help clients make charitable contributions that are both personally fulfilling and socially impactful.

©2025 Daylight Advisors, Inc.