By Brad Layland CEO, The FOCUS Group | Author of Turning Donors into Partners
Key Takeaways
- Donor-advised funds can be powerful tools for charitable giving when used strategically.
- The purpose of a DAF is to facilitate generosity, not delay it indefinitely.
- Stewardship involves both wise planning and timely action.
- Resources designated for Kingdom work should ultimately move toward Kingdom impact.
- The greatest joy of giving comes not from accumulating charitable assets but from seeing lives changed.
Recently, I read an article titled The Parable of the Stored Loaves and Fish: When Donor-Advised Funds Become Spiritual Warehouses by Dr. Scott Rodin, Chief Strategy Officer for The FOCUS Group, and Roland Warren, President and CEO of Care Net. Their article challenged me, encouraged me, and frankly affirmed something I have believed for more than twenty years.
Having spent more than two decades helping donors give away hundreds of millions of dollars, I've seen firsthand how the right charitable tools can either accelerate generosity or unintentionally delay it. That's one reason donor-advised funds (DAFs) have always fascinated me. They can be incredibly effective when used as intended, but they can also become something they were never meant to be.
I am a big believer in DAFs. In fact, I opened my very first DAF at the National Christian Foundation (NCF) more than twenty years ago.
The reason was simple. I had just completed my first significant real estate transaction, and when the property sold, I wanted to tithe on the proceeds. The challenge was that I had never had that much money to give away all at once. I knew I wanted to be generous, but I wasn't sure exactly where those dollars should go right away.
A friend introduced me to NCF and explained how a DAF could work. I could make a charitable contribution, receive the associated tax benefits, and then thoughtfully distribute the funds to ministries and organizations over time. It was exactly what I needed.
From the very beginning, I viewed my DAF as a strategic tool—not a destination.
Over the years, I have contributed many different types of assets to my DAF, including cash, appreciated stock, real estate, and business interests. The flexibility has been remarkable. Rather than coordinating gifts to multiple organizations each time I experienced a liquidity event, I could make a single contribution to the DAF and then prayerfully and strategically determine where those resources should go.
The convenience has been fantastic, but there is one thing I have always done: given the money away.
My DAF has never been a long-term holding account. In fact, I don't think funds have ever remained there for more than six months. The purpose was never accumulation. The purpose was deployment. For me, the DAF has always functioned as a temporary staging area where resources come in, decisions are made, and then the money goes out into ministry.
That is why I have been surprised by some of the statistics surrounding DAFs.
Recently, I was speaking with Chris Chancey, President of NCF Jacksonville. During our conversation, he shared that the majority of DAF accounts in the NCF Jacksonville community had not made a grant during the previous 12 months. I couldn't believe it; not because I doubted the data, but because I struggled to understand it.
When I look around, I see incredible opportunities for generosity everywhere. Ministries are reaching people with the gospel. Schools are shaping young lives. Pregnancy centers are serving women and families in crisis. Churches are planting campuses and expanding their impact. Organizations are feeding the hungry, caring for widows, and serving vulnerable communities.
The opportunities to make a difference seem endless.
So when I hear about billions of dollars sitting in DAFs, I don't immediately think about tax strategy or investment returns. I think about ministry opportunities waiting to be funded. I think about missionaries who need support, students who need scholarships, churches pursuing new initiatives, and nonprofits working to solve real problems today.
To be clear, I am not criticizing DAFs themselves. I love DAFs. They have been one of the most useful charitable planning tools I have ever used.
The issue isn't the tool. The issue is how we use it.
A hammer can build a house or sit unused in a toolbox. In the same way, a DAF can accelerate generosity or delay it. The tool itself is neutral. What matters is whether it ultimately helps resources move toward the purposes for which God provided them.
Rodin and Warren make a compelling biblical argument that resources set aside for Kingdom purposes should be moving toward Kingdom impact. Their article is not an attack on DAFs. Rather, it is a challenge to Christian stewards to examine whether our giving practices reflect the urgency of God's mission.
The challenge is worth hearing.
As Christians, we often pray for God to provide resources. When He does, we rightly celebrate His provision. But we should also remember why He provided those resources in the first place.
The goal isn't simply to accumulate wealth. The goal is to deploy God's resources for God's purposes.
Personally, I have found tremendous joy in using my DAF as a conduit rather than a warehouse. Every time I have experienced a significant financial event, the DAF has helped me simplify my giving, think more strategically, and ultimately become more generous.
But the best part has never been watching the account grow.
The best part has been watching the account empty as those resources are invested in ministry and transformed into real Kingdom impact.
That's why I wholeheartedly encourage you to read Rodin and Warren’s article. Whether you currently use a DAF or have never considered one, their perspective raises important questions about stewardship, generosity, and the responsibility that comes with God's provision.
DAFs are wonderful tools. Let's make sure we use them the way they were intended: to help move resources into ministry, not simply to store them.
Because every dollar sitting on the sidelines is a dollar that could be changing lives today. And what an incredible opportunity God has given us to be generous.
About the Author
Brad Layland is CEO of The FOCUS Group, a fundraising consulting firm serving more than 150 Christian ministries worldwide. He previously served as Chief Development Officer for Young Life and is the author of Turning Donors into Partners (InterVarsity Press). Brad is an avid marathon runner and lives in St. Augustine, Florida, with his wife Wendy. They have four children.
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