By Dr. Scott Rodin and Roland C. Warren
Key Takeaways
- Christian ministries have a unique opportunity to help donors connect charitable resources with present-day Kingdom needs.
- Thoughtful DAF conversations can encourage donors to move from delayed giving to active generosity.
- DAFs can strengthen a family's legacy when generosity is practiced together, not simply inherited.
Imagine you’re sitting across the table from a long-time supporter. They’ve just shared the "good news" that they’ve moved a significant portion of their wealth into a donor-advised fund (DAF). On one hand, you’re thrilled! They’ve committed these resources to the Kingdom. But on the other hand, you know the reality: for many donors, the DAF becomes a "spiritual warehouse" where resources are blessed and multiplied, but then carefully packed away for a "more strategic" time.
The pain point for every development director is the “waiting room” effect. You see urgent needs on the front lines today: the hungry to be fed, the gospel to be shared, and lives to be saved. Meanwhile, billions of dollars sit in holding accounts, growing in value but creating zero immediate impact.
At its heart, relational fundraising is about meeting your donors where they are and helping them faithfully steward the resources God has given them. It looks more like discipleship than simply securing grants. It’s about shepherding your donor’s heart toward the "life that is truly life." When a DAF balance grows while a ministry’s needs go unmet, the donor might be missing out on the opportunity to be used by God to help bring about the miracle they were meant to steward.
A Relational Approach to Donor-Advised Fund Stewardship
How do we lean into relationships with our donors to turn those warehouses into pipelines? As the relationship allows, here are three ways to gently shepherd your DAF-holding donors toward greater joy.
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Shift the Focus From "Account Growth" To "Giving Growth"
Our donors are often conditioned to find satisfaction in a rising investment balance. In your relational check-ins, gently pivot the celebration. Instead of watching the DAF balance grow, challenge them to celebrate "giving growth." Encourage them to find more joy in the number and size of grants distributed than in the year-end account statement.
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Challenge the "Perfect Timing" Trap
Many donors hold back because they are waiting for the optimal moment or they are "keeping their powder dry." You can remind them that Kingdom impact now has eternal value that cannot be recaptured by waiting five years for a "perfect" project. In feeding the 5,000, Jesus responded to the immediate needs of the crowd on the hillside that day. We can invite our donors to do the same.
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Reframe the Default to 100%
In a relational context, you can ask the deep questions: "Why wouldn't we give 100% of these funds to God's work now?" Since the donor has already captured the tax benefit, the money is already given in the eyes of the IRS. Help them see that as long as it sits, management fees (often around 0.6% annually) are slowly chipping away at Kingdom resources that could be serving the mission. Suggest a "sunset policy" where every contribution is fully distributed within a given time frame, and the sooner the sun sets, the sooner God’s work will be accomplished.
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Invite the Next Generation Into the Miracle
DAFs are perhaps the greatest tool ever created for family generosity. Instead of leaving an inheritance for "one day," encourage your donors to use their DAF today to involve their children and grandchildren in active grant-making. This allows the family to experience the "miracle of distribution" together, cementing a legacy of generosity that is lived, not just inherited.
Explore Further
If you want to explore the biblical framework and the startling statistics behind this trend, please read and share the full article, "The Parable of the Stored Loaves and Fish."
It provides a compelling look at why the current $250 billion DAF surge is both a challenge and an unprecedented opportunity for Christian ministries and the church. More importantly, it will equip you with language and guide you toward a heart posture that helps donors complete the “circle of blessing,” moving from the tax deduction to the life-changing thanksgiving that happens when the “two loaves” are multiplied and feed the crowd.
About the Authors
This article was co-authored by Dr. Scott Rodin, Chief Strategy Officer at The FOCUS Group, and Roland C. Warren, President and CEO of Care Net.
Dr. Scott Rodin is Chief Strategy Officer & Senior Consultant at The FOCUS Group and has spent nearly four decades helping hundreds of ministries and organizations grow in leadership, fundraising, and strategic effectiveness, with reach spanning the U.S., Canada, the Middle East, and beyond. A former seminary president and author of fourteen books on stewardship and generosity, Scott brings both theological depth and hard-won practical wisdom to the work of kingdom leadership.
Roland C. Warren is President and CEO of Care Net and has spent more than three decades helping individuals, families, and organizations flourish through faith-based leadership. A graduate of Princeton University and the Wharton School of Business, Roland previously served as President of the National Fatherhood Initiative and held leadership roles with IBM, PepsiCo, and Goldman Sachs. As an author, speaker, and advocate for abundant life, he brings a unique perspective on stewardship, generosity, and the ways faithful leadership can create lasting Kingdom impact.
We’ve been privileged to help many organizations be more effective in their fundraising by learning and implementing relational fundraising principles in their work with donors. Want to talk?