Bridging the Awareness Gap: Why DAF Donors Are Ready to Support CDFIs
Brendon Miller, OFN Executive Vice President, Chief of Staff and Head of Communications
Better information about CDFIs could unlock significant giving potential
Read time: 3 minutes
In communities that have long faced barriers to affordable capital, even modest investment can power real economic momentum. Donor-advised funds (DAFs), which now hold more than $250 billion in charitable assets and distributed nearly $55 billion in grants in 2023, represent one of the most promising pathways to support community development. Yet a new survey reveals an encouraging finding: the primary barrier isn’t donor interest, but awareness.
To better understand this opportunity, OFN partnered with DAFgiving360TM, an independent 501(c)(3) public charity and one of the largest DAF sponsors, to survey DAF donors and advisors in their online community. The resulting brief — Unlocking Potential: Donor-Advised Funds and Community Development Financial Institutions (CDFIs) as Partners in Community Impact— uncovers what donors need to confidently direct philanthropic dollars toward CDFIs.
The findings reveal strong interest in CDFIs among donors and advisors, with many expressing enthusiasm for supporting community development finance. However, most have limited familiarity with nonprofit CDFIs (which represent the majority of OFN members) as eligible giving vehicles.
Donors want clarity about how CDFIs operate, how they measure impact, and how grants would be used. Rather than a lack of intent, this awareness gap signals that donors need more accessible information to match their values with the right charitable giving tool. Donors expressed an interest in supporting CDFIs through multiple offerings — grants, recoverable grants, and impact-first loans — which may further multiply the impact of DAF assets.
The survey also identifies messages that resonate most effectively. Donors respond to the multiplier effect created when CDFIs recycle and leverage capital to serve more people over time. They are drawn to mission-centered explanations, clear examples of local impact, and evidence of financial and operational credibility. When donors see how CDFIs strengthen community health, alongside economic development, workforce development, and job creation, the alignment becomes clear.
As philanthropy turns extra attention to community needs this season — including the Giving Tuesday movement, which in 2024 produced a record-breaking $3.6 billion in donations — these insights offer a timely perspective. As DAF resources continue to grow, even a modest shift in charitable allocations toward CDFIs could expand access to capital in communities that need it most. Strengthening donor understanding is a practical and achievable way to unlock that potential.
Read the full brief to explore the findings and learn how CDFIs and DAF partners can work together to expand opportunity in underserved communities. To find a CDFI, use OFN’s CDFI Locator.
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