Trending
At the 2025 Charles Schwab IMPACT Conference in Denver, a central theme emerged across sessions and conversations: clients no longer define wealth solely in numbers. They define it in impact. As more investors—from multigenerational families to successful entrepreneurs—seek purpose-driven strategies, donor-advised funds (DAFs) are becoming one of the most powerful tools in the advisor’s toolkit.
In a conversation with Fred Kaynor, Managing Director at DAFgiving360, and Stasia Washington, Managing Director and Senior Wealth Manager at Lido Advisors, the discussion centered on how DAFs are transforming the way advisors facilitate charitable giving and deepen client relationships.
What Exactly Is a Donor-Advised Fund?
At its core, a donor-advised fund simplifies charitable giving by combining tax efficiency, strategic philanthropy, and investment growth under one umbrella.
“A donor-advised fund, at its core, is an account for charitable giving,” explained Kaynor. “It’s essentially a threefold process—donors contribute to the account and receive a fair market value deduction at the time of the gift. We liquidate those assets, invest them for growth, and when the time is right, donors grant the proceeds to the charities of their choice.”
For advisors, DAFs like those offered through DAFgiving360 provide not only a sophisticated way to manage charitable intentions but also an accessible entry point for families and individual clients who may not have the time, capital, or infrastructure to establish their own private foundations.
Turning Checkbook Philanthropy into Intentional Giving
Washington, who has built her career guiding clients through values-based wealth management, described donor-advised funds as a gateway to transforming unstructured generosity into impactful legacy planning.
“Many of my clients were checkbook philanthropists—writing ad hoc donations without structure or purpose,” she said. “A donor-advised fund allows us to streamline that giving, make it more efficient, and set up the next generation for philanthropic success. It’s a tool to align purpose and values without the complexity tied to a private foundation.”
Washington emphasized that DAFs have allowed her to shift client conversations beyond transactions into deeper discussions about meaning and long-term impact. “It allows us to build relationships, not transactions,” she said. “It’s been an efficient way to extend legacy—and honestly, it’s been a door opener for relationships.”
The Advisor’s Expanding Role in Charitable Planning
While DAFs have existed for decades, advisors are increasingly recognizing their role as interpreters—helping clients translate financial success into social capital and lasting influence.
Kaynor noted that this integration of charitable planning into wealth management isn’t just a passing trend. “We work with over 4,700 advisors, and many—like Stasia—embrace charitable planning as an integral part of their practice,” he said. “A recent Schwab benchmarking study found that 86% of advisors now offer charitable planning as a way to differentiate and elevate their value proposition.”
That same report underscores what many high-performing advisors already know: offering DAFs through partners like DAFgiving360 helps retain clients during critical transitions (such as business sales, inheritance events, or retirement) and attracts the next generation of philanthropically minded investors.
Charitable Planning Goes Beyond Tax Efficiency
Too often, the conversation around donor-advised funds begins and ends with taxes. But as Washington highlighted, the real power of a DAF lies in its ability to connect money with meaning—particularly in volatile or uncertain times.
“Clients today are different from their parents,” she observed. “Once they know how much is enough, they start asking what ‘enough’ really means. They want to use their wealth in transformative ways. We’ve seen clients use charitable planning not only to reduce taxes but to make a real difference during moments of crisis or opportunity.”
This redefinition of wealth aligns with a growing movement toward what many advisors call “holistic planning”—where values, legacy, and personal mission take center stage. For Washington’s clients, a DAF often becomes the centerpiece of their family’s impact strategy.
The Misconception of “Stagnant” Giving
Some industry observers assume the charitable giving landscape has plateaued. Kaynor counters that assumption with data—and enthusiasm.
“We just saw our donors give $8.9 billion to charity—an increase of 34% year over year,” he said. “Our donor base is anything but stagnant. They’re highly engaged, more philanthropic than ever, and stepping up to meet elevated needs.”
The growth isn’t driven by older generations alone. Washington sees the next generation pushing for even greater social engagement. “If you’re not leading with philanthropy as part of the conversation, you’re being reactive,” she said. “Our job as advisors is to help clients align values to purpose. When you do that, money takes on a different meaning.”
Philanthropy as the Connector Across Generations
For both Kaynor and Washington, DAFs offer more than just tax and investment advantages—they’re a bridge across generations.
“Many family offices tell us they worry about losing relationships once their primary contact passes away,” Kaynor explained. “Philanthropy, and specifically DAFs, give them a reason to engage the next generation. It keeps the conversation going, anchoring family relationships in something much bigger than wealth.”
That multigenerational dynamic, Washington added, reinvigorates families. “You can open a donor-advised fund at any size—it doesn’t require a massive contribution to start. Once that account is open, we can build a roadmap around giving, aligning passions with impact and growing those dollars over time.”
For advisors, this accessibility transforms philanthropy from an abstract concept into a living, participatory process the whole family can shape.
How Advisors Can Leverage DAFs Strategically
Kaynor outlined two pivotal opportunities for advisors to integrate DAFs into their practices:
-
Tax-efficient planning during liquidity events:
“When clients experience an inheritance, sell a business, or face a large capital gain, a DAF is an incredibly efficient way to reduce exposure while maximizing impact,” he said. “They can contribute appreciated assets, receive a full market value deduction, and avoid the capital gains hit.” -
Investment growth for future giving:
“Because DAF contributions are invested, the capital can grow tax-free until it’s granted,” Kaynor continued. “That means more available for the causes clients care about most—in both the near term and across generations.”
Washington summarized this advantage with characteristic clarity: “Two words—flexibility and focus. DAFs help clients narrow their giving, stay intentional, and create a legacy that extends beyond wealth into genuine impact.”
A Win-Win Approach for Advisors and Clients
The dialogue between Washington and Kaynor reflects a broader pivot in the advisor community toward values-based financial planning. DAFs like those offered through DAFgiving360 simplify philanthropy while amplifying advisors’ value propositions—deepening trust, fostering multigenerational continuity, and expanding the scope of meaningful planning conversations.
In an age where investors crave both return and relevance, integrating charitable planning is not just about generosity—it’s about differentiation.
As Kaynor put it, “Philanthropy is no longer a side note in financial planning. It’s fast becoming a central pillar of how advisors sustain relationships and drive purpose for their clients.”
Learn More
Financial advisors and investors interested in integrating donor-advised funds into their planning strategies can explore the resources and partnership opportunities available through DAFgiving360.org.
Related: Beyond ETFs: Why Advisors Are Turning to Schwab’s New Direct Indexing Model