Good News! Neon Fundraise Now Integrates with DAFpay

Donor-advised funds (DAFs) are on the rise! In 2023 alone, people donated $52 billion to their favorite causes and organizations using DAFs. When we asked some Neon One users how they approach donor-advised funds, 62% said DAFs are already a part of their fundraising efforts. But lots of them also said that actually processing donations from those funds can be a challenge.

That’s why we’re so excited to announce that Neon Fundraise—our peer-to-peer fundraising platform—now integrates with DAFpay powered by Neon Pay and Chariot. Here’s what that means and why it’s a game-changer.

What Is a Donor-Advised Fund?

A donor-advised fund is an investment account that people create to support charitable organizations. When someone opens a DAF, they contribute money or assets to a dedicated fund, which is managed by a 501(c)(3). They receive tax benefits for their contributions, and the money in their fund may only be used to support nonprofits.

This is becoming an increasingly popular way for people to support their favorite causes! Making grants through DAFs is on the rise, and more and more nonprofits are looking for ways to make it easy for people to donate the funds in those accounts.

How Does the Integration Work?

Donor-advised funds may be getting more popular, but it can actually be difficult for people to move money from their DAFs to the organizations they want to support. And, since people are less likely to complete a donation if they encounter difficulties during the giving process, this can be a big challenge for nonprofits.

It can be a costly challenge, too. According to Fidelity, the average grant from a DAF was $4,625 in 2023—that’s a significant contribution!

Chariot’s DAFpay integration simplifies the process. They make it easy for donors to support their favorite organizations using their donor-advised funds. And, now that DAFpay integrates with Neon Fundraise, it’s easier than ever for donors to give to their loved ones’ peer-to-peer fundraisers from their DAFs.

Here’s how it works if you want to use this integration:

When you set up the merchant account for your Neon Fundraise system, you’ll enroll in Chariot’s DAFpay and set up your DAFpay account
You’ll enable DAFpay as a payment method
When someone decides to give to your peer-to-peer fundraiser using their fund, they’ll choose the DAFpay option
They’ll enter their fund’s details and confirm their grant amount
After they double-check their contact information, they submit the grant

All done! This is a simple, straightforward way to make a grant to a peer-to-peer event—and it’s much simpler than the roundabout granting process associated with most DAFs.