DAF Fundraising Tips: Don’t be Daffy About DAFs
Donor Advised Funds (DAF) have become an increasingly popular way for large and small donors to make charitable gifts. With more than $228 billion in assets currently held in DAFs, nonprofits can’t afford to ignore this growing trend.
Our friends at the Chronicle of Philanthropy spoke with four experts, Cinira Baldi of Project Hope, Susan Murray of Year Up, Muhi Khwaja of American Muslim Community Foundation, and Stephanie Buckley of Wells Fargo, to provide ten key insights for making DAFs a robust element of your organization’s fundraising strategy.
Don’t wait until December to focus on DAF gifts.
Distributions from DAFs can take two to four weeks to arrive, so if you wait until December to start asking donors to make a DAF gift, you may miss your year-end goal if gifts arrive in January.
Remind DAF donors to initiate a distribution.
DAF account holders need to be reminded that “set it and forget it” isn’t how DAFs work. Donors need to take action to trigger a donation.
Suggest automatic distributions from DAFs.
Many DAFs offer the option to make automatic distributions, such as monthly, quarterly, or annual gifts. Asking donors to take advantage of these opportunities may make giving easier for them while securing recurring income for your nonprofit.
Make the most of your data.
Data is always at the core of successful fundraising. By analyzing trends, you can identify donors that made a high volume of DAF distributions to inform your outreach strategies.
Treat DAF supporters like potential big donors.
Assume that donors who give through a DAF probably have the potential to give more than donors who use more traditional giving channels and steward them appropriately.
Try to learn more about anonymous donors.
When receiving an anonymous DAF gift, contact the sponsoring organization to determine if additional information about the donor is available for stewardship purposes.
Build and maintain relationships with DAF administrators and advisers.
DAF administrators and advisors are keen to be helpful to their clients. Provide simple talking points about your work, which can be shared with donors who may be interested.
Tap into your networks.
Networking has always been an essential element of fundraising and is especially important for DAFs. Build bridges to DAF professionals through existing donors who can connect you to their DAF adviser.
Promote DAFs as planned gifts.
Some DAFs become “orphans” when the person who owns the fund dies with no plan for a successor adviser. Talk with donors about leaving their DAFs to the nonprofit in their will.
Just ask.
Asking for a DAF gift is essential. Be proactive in asking donors if they have a DAF and encourage them to give through it.
Use these tips to make sure your organization is maximizing DAF giving this year-end and help make DAF marketing a key element of your 2025 fundraising strategy.
If you need any further assistance, IDM is here to help your organization develop a successful DAF plan!
