Decentralized Autonomous Organizations (DAOs) could transform nonprofit operations by enhancing transparency, efficiency, and community engagement. DAOs operate on blockchain, enabling trustless, automated governance through smart contracts. Nonprofits can leverage DAOs to decentralize decision-making, allowing stakeholders—donors, volunteers, and beneficiaries—to vote on fund allocation or projects, fostering inclusivity. This reduces administrative overhead, as funds are managed transparently on-chain, minimizing mismanagement risks. Additionally, DAOs enable global participation, broadening donor bases and volunteer networks. However, challenges like regulatory uncertainty, technical barriers, and ensuring equitable access to voting may hinder adoption. While DAOs won't replace traditional nonprofits, they offer a compelling model for those seeking greater accountability and community-driven impact. Nonprofits adopting DAOs could redefine trust and collaboration in the sector.