Goodworld now supports DAFpay as a payment method option for all donations. This addition makes it simple for donors to contribute directly from their Donor-Advised Fund (DAF), providing an easy, secure, and tax-efficient way to give.
DAF Pay will be enabled by default for all organizations, ensuring your donors have immediate access to this modern giving option.
What is a DAF (Donor Advised Fund)?
A DAF (Donor Advised Fund) is a charitable giving account administered by a sponsoring organization, such as Fidelity Charitable or Schwab Charitable. Donors contribute funds to their DAF and receive an immediate tax benefit. They can then recommend grants from those funds to support eligible nonprofit organizations at any time.
DAFs are currently the fastest-growing vehicle in all of philanthropy:
$52 billion in donations were distributed through DAFs in 2023
$228+ billion currently held in DAF charitable assets in the United States (National Philanthropic Trust)
What is DAFpay?
DAFpay is a digital payment option that allows donors to recommend grants from their Donor-Advised Fund directly during the checkout process.
Instead of submitting a separate grant request through their DAF provider’s website, donors can complete their contribution within the same donation flow.
This reduces friction and makes it easier for DAF donors to support your organization.
How DAFpay works
Donor selects DAFpay at checkout
During the donation process, donors choose DAFpay as their payment method.
Donor logs into their DAF provider
Donors securely authenticate with their DAF sponsoring organization.
Grant recommendation is submitted
The donor recommends a grant to your nonprofit directly from their DAF account.
Funds are distributed
The sponsoring organization processes and sends the grant to your nonprofit.
DAFpay supports enhanced Donor Advised Fund giving from all 1,151 DAFs and is fully compatible with over 70% of the DAF market by volume, including Fidelity, Vanguard, Schwab, National Philanthropic Trust and many others.
Enabling or Disabling DAFpay
DAFpay provides flexible controls at both the organization and campaign levels.
Platform-Level Controls
Administrators can:
Turn DAFpay ON or OFF across the entire platform
Manage availability from the Features settings area
Campaign-Level Controls
Administrators can:
Disable DAFpay for specific campaigns
Customize payment options based on campaign needs
Default Settings
DAFpay is enabled by default for eligible nonprofits
Included for free-tier clients
United Way organizations are excluded from default enablement
Receiving DAFpay Grants
If your organization has claimed its account with Chariot
Organizations that have registered and claimed their account with Chariot will receive DAFpay grants directly from the donor’s DAF sponsoring organization.
Grants are typically distributed as checks for the full (gross) amount unless ACH has been arranged directly with specific DAF providers.
Each grant includes a unique Tracking ID to help your organization reconcile the payment internally.
Chariot deducts a 2.9% processing fee, which is charged at the end of each month to the payment method on file for the registered account.
If your organization has not claimed its account with Chariot
Organizations that have not completed registration with Chariot will receive grants through the DAFpay Network.
In these cases, the DAFpay Network mails a check for the grant amount minus applicable processing fees to the nonprofit’s official mailing address on file with the IRS.
Key Features
DAFpay Payment Option
Donors can select DAFpay at checkout to give directly from their Donor-Advised Fund account.
Default Enablement
DAFpay is automatically enabled for all nonprofits (except United Way) and included for free-tier clients.
Flexible Controls
Nonprofits can:
Turn DAFpay on or off at the platform level.
Disable DAFpay on a campaign-by-campaign basis if desired.
No Extra Setup
There are no additional gateways or integrations required—DAFpay is included as part of Goodworld’s giving platform.
Benefits of DAF Pay
Convenience for Donors
DAFpay makes it easier for donors who already manage their charitable giving through Donor-Advised Funds to give directly.
Tax Efficiency
Because contributions are distributed from a DAF, donors may receive immediate tax benefits while simplifying their annual giving strategy.
Access to Major Donor Pool
Donor-Advised Funds hold over $228 billion in charitable assets in the U.S. (2023, National Philanthropic Trust). Enabling DAFpay connects nonprofits to this growing segment of philanthropic capital.
Trust & Transparency
Offering DAFpay signals that your organization is aligned with the way high-capacity donors are choosing to give.
Use Cases
University or School Foundation Campaigns
Alumni and parents with DAF accounts can support scholarships and capital campaigns quickly through DAFpay, reducing barriers to giving.
Health & Human Services Nonprofits
Healthcare and human service organizations can receive significant contributions from donors who prefer to use DAFs for major gifts.
Year-End Appeals
During seasonal giving campaigns, donors can make larger contributions via DAFpay, tapping into pre-allocated funds already reserved for charitable giving.
By enabling DAFpay, Goodworld nonprofits can expand donor options, tap into a growing pool of DAF assets, and make giving easier for high-capacity supporters. With flexible on/off controls at both the platform and campaign levels, DAFpay is designed to be simple, secure, and impactful.
If you have questions about DAFpay, schedule a support call with our success team.