By Sofia Michelakis

Because tomorrow is DAF Day, a national day of giving for donor-advised funds, we thought it would be interesting to share examples from our clients on how DAFs can be enormously helpful for their flexibility and versatility as giving vehicles. 

At Phīla, we really get to know our clients and understand their philanthropic goals and motivations – as well as their fears and concerns – before crafting a plan to meet their specific needs. We often work with clients to activate their DAFs by creating opportunities that can adapt to different giving timelines, areas of interest, and privacy concerns. 

Last month, I had the great pleasure to represent Phīla at the DAF Giving Summit in Austin, Texas, where our firm received the 2026 Advisor Innovation and Impact Award for our creative use of DAFs to help our clients respond quickly and decisively to pressing needs from their nonprofit grantees. We were beyond humbled to receive the recognition, but the real credit goes to the donors whose generosity led to such a transformative gift. 

Here is the case study that led to our award, which was a true team effort by everyone at Phīla. 

Responding Quickly to Government Cuts

In early February 2025, the Phīla team organized a site visit for Phīla CEO Stephanie Ellis-Smith and a client who was looking for new grantees to support with a focus on agriculture.

Our destination was Viva Farms, a non-profit that provides aspiring farmers the resources and support necessary to build viable, independent farm businesses.

When the leaders of Viva Farms greeted us, they were visibly shaken. They had just learned that the federal Department of Agriculture (USDA) had frozen their funding and there was no word or promise that it would be restored. At the time, USDA funding constituted roughly 70% of Viva Farms’ budget. Because much of the funding consisted of multi-year grants, Viva Farms lost access to nearly $5 million. Making matters even worse, federal grants are reimbursable grants, which means to get your funding, you have to incur the expense first and be paid back. So Viva had a quarter’s worth of bills to pay and no way to cover those expenses.

When we arrived, the Viva team was coming to grips with the fact that they would have to lay off staff, eliminate programs to support women and Latino farmers, and suspend a capital campaign to build a new barn. 

The site visit quickly pivoted from their planned pitch to us asking them, “What do you need to stay open for 90 days?”

We moved quickly to help our clients make three gifts in quick succession, including two through their new Hummingbird Fund, a donor-advised fund that we had recently formed to facilitate their increased giving. In just a few weeks, we helped our clients move $1,350,000 to Viva Farms. Throughout the process, we served as advisors not only to our clients in how to deploy their funds in an emergency, but also to the beleaguered nonprofit staff, offering support to help the board and senior staff lead through difficult times. 

Our clients’ funding enabled them to keep their operations running and survive the funding freeze. Eventually some grants were restored, but two major grants were officially terminated, including the Increasing Land, Capital, and Market Access program that had pledged $2.5 million to Viva Farms, nearly all of it for direct distribution to beginning farmers. Viva Farms joined a lawsuit contesting the cancellation of the program, and this summer they were one of 24 grantees that won a preliminary injunction to have the funding restored – but it remains to be seen when the money will become available.  

Applying These Lessons to Your DAF Giving

Donor-advised funds can do so much more than create convenient tax deductions! Their flexibility can create opportunities to give differently: to respond faster, take thoughtful risks, and build deeper relationships with the organizations you support. Here are a few ways to put that flexibility to work:

1. Give While You Learn. You don’t need a fully formed philanthropic strategy before you begin making grants. Use your DAF to support organizations as you explore an issue, learn from nonprofit leaders, and discover where your interests and resources can have the greatest impact. Start with thoughtful gifts, pay attention to what you learn, and let those experiences shape what comes next.
   
2. Put Your DAF to Work When the Unexpected Happens. When you learn that an organization you care about is facing an unexpected crisis, think immediately about the charitable dollars already in your DAF. Those funds give you the ability to respond quickly and, when the need warrants it, to stretch beyond your usual giving. Don’t wait for your next planned grantmaking cycle. Sometimes the moment to give is right now.
   
3. Think Creatively About How You Give. A DAF gives you options beyond simply recommending a grant. Sometimes anonymity gives you or a nonprofit needed privacy; other times putting your name behind a gift can help attract additional support. You might make a multi-year commitment to give an organization greater stability or structure a gift around a particular opportunity. Consider not only how much you want to give, but how your gift can best accomplish what you hope it will.
   
4. Use Your DAF to Catalyze Other Giving. Your charitable dollars can sometimes accomplish more when they encourage others to give, too. Consider using your DAF for a matching campaign, challenge grant, or early commitment that gives others confidence to participate. 
   
5. Share the Power. A DAF doesn’t have to keep all decision-making in the donor’s hands. We’ve helped clients create DAFs and invite local community leaders to serve as the advisors, giving people closest to the issues and communities real authority over where charitable dollars go. Consider who has the knowledge, relationships, and lived experience to make good decisions and whether your DAF can be structured to put power directly in their hands.