Donor-advised funds are rapidly increasing in both assets and total grant dollars given; and the number of new donor-advised funds being opened continues to climb. The National Philanthropic Trust released its 2019 Donor-Advised Fund Report, packed full of great information and statistics.
Below are three ideas you can implement today to capitalize on securing funding from Donor-advised funds (DAF):
- Include DAFs as a way to give & make it easy: When your nonprofit list the ways to give on its website, or in your next e-newsletter, add DAFs to the list. All the donor will need to give a gift from their DAF is the nonprofit’s tax ID, legal name and address to process the grant. Development Directors should also keep track of those donors giving from DAFs to continue cultivation strategies for future gifts.
- Acknowledge the DAF holders: You should acknowledge the donor rather than the sponsoring organization and share how their grant directly impacted your nonprofit. If the sponsoring organization is a community foundation, it is a great idea to let them know you appreciate the gift too, and provide them an update about your nonprofit. Staying in touch with a DAF’s sponsoring organizations and providing updates is a great idea as they might have another DAF that aligns to your mission.
- Plant the idea of legacy giving to DAF holders: Donors that begin DAFs are thoughtful and strategic about their giving and are likely to be considering how they might leave a legacy or planned gift. As you cultivate and steward DAF holders, include planned giving as part of your long-term conversations.
These practices are easy to incorporate into your daily fundraising plan. To read the full report, visit National Philanthropic Trust.
