Smart giving is on the rise, and it’s changing the way people give, why they give, and how much they’re willing to contribute. More and more supporters are discovering that giving can be both generous and strategic. Donors are moving beyond traditional cash gifts and looking for ways to give that align with their financial goals, tax strategies, and long-term planning.
They’re giving through Donor-Advised Funds. They’re donating stock. They’re using retirement assets. And they’re doing it not just because it’s efficient, but because it feels intentional.
This shift isn’t just happening among major donors. Everyday givers are exploring options that once felt niche or complicated. With the right tools and messaging, these forms of giving are becoming more accessible – and more powerful – than ever before.
For fundraisers, this is a huge opportunity. Smart giving can unlock larger gifts, introduce new touchpoints for stewardship, and support sustained growth. But it requires a shift in how we talk about giving and how we invite donors into the process.
Smart giving isn’t a trend. It’s the future. And it’s time to make it part of your everyday fundraising strategy.
What Exactly Is Smart Giving?
Smart giving is any form of non-cash charitable contribution that goes beyond a one-time gift by check or credit card. These gifts often involve appreciated assets, tax savings, or long-term planning. Common examples include gifts made through Donor Advised Funds, Qualified Charitable Distributions from IRAs, stock donations, real estate, or even cryptocurrency.
The appeal is simple. Smart giving allows donors to do more with what they already have. A gift of stock can be more cost effective than a cash gift. A distribution from a retirement account can lower taxable income. And giving from a DAF allows donors to plan their philanthropy over time.
What once seemed complicated is now much more accessible. Today’s donors have access to online tools that make these options easier than ever. That means organizations of all sizes can benefit from building smart giving into their strategy.
Why Smart Giving Matters in 2025
Several trends are making smart giving more important than ever:
- Donors are more financially aware. People are thinking about giving the same way they think about investing – with strategy, goals, and long-term impact in mind.
- Giving tools are easier to use. Online platforms now allow donors to contribute stock, send grants from DAFs, and make estate gifts with just a few clicks.
- Donor Advised Funds are booming. With more than $250 billion currently sitting in DAFs, they are now a major channel for giving, not a niche.
- Wealth is changing hands. With trillions of dollars moving from baby boomers to younger generations, donors are seeking ways to make giving part of their legacy.
- Giving is more value driven. Donors want their giving to reflect not only generosity but also financial responsibility and long-term vision.
Fundraisers who meet donors in this space are more likely to attract thoughtful, high impact gifts – and build lasting trust.
Types of Smart Giving
Here are some of the most common types of smart giving fundraisers should be prepared to support:
Donor Advised Funds
DAFs allow donors to contribute to a charitable account, take an immediate tax deduction, and recommend grants over time. Many donors use DAFs to pre-fund their giving or manage it across multiple organizations.
What to do: Make DAF giving easy on your website. Offer instructions, share your nonprofit’s EIN, and track these gifts in your donor database.
Qualified Charitable Distributions
Donors over age 70 and a half can give directly from their IRA up to $100,000 annually without it counting as taxable income.
What to do: Mention QCDs in year end appeals and include a section on your giving page explaining how they work. This option is especially appealing for donors who take required minimum distributions.
Stock and Appreciated Assets
Gifts of stock often provide significant tax advantages. Donors avoid capital gains tax and may be able to give a larger gift than they would with cash.
What to do: Partner with a platform that facilitates stock giving and include that option in your email and direct mail appeals.
Legacy and Estate Gifts
Planned giving includes bequests, charitable trusts, and beneficiary designations. These gifts can be transformational and reflect deep donor commitment.
What to do: Offer free will creation tools, feature planned giving in newsletters, and recognize legacy donors publicly.
Bringing Smart Giving Into Your Program
You don’t need a planned giving team or legal expertise to begin offering smart giving options. Here are five practical ways to get the ball rolling!
1. Make It Visible
Add a section on your website that clearly outlines non-cash giving options. Use plain language and visual icons to easily guide donors.
2. Educate and Inspire
Include short features in your email newsletters or blog explaining different giving tools. Use donor stories when possible to show real life examples.
3. Train Your Team
Gift officers and donor engagement staff should understand the basics of smart giving. They don’t need to be experts – just comfortable starting the conversation and directing donors to resources.
4. Steward Thoughtfully
These donors are often giving with intention. Follow up promptly, share the impact of their gift, and invite them into deeper engagement.
5. Segment and Target
Use donor data to identify who may be a good fit for smart giving. For example, target older donors with QCD messaging or recognize repeat DAF givers with tailored appeals.
The Future of Fundraising is Smarter
Smart giving is not just about tax savings or larger gifts. It is about building a fundraising strategy that fits the way donors think, plan, and want to engage.
In a landscape where unrestricted revenue is critical and donor loyalty is harder to earn, offering options beyond the donate button is a must. These giving methods offer flexibility, meaning, and efficiency – all things today’s donors value.
As 2025 continues to unfold, organizations that integrate smart giving into their donor experience will be better equipped to weather uncertainty, deepen relationships, and grow sustainably.