5 Strategies to Engage DAF Donors

Have you been hearing more about Donor-Advised Funds (DAFs) lately?  You’re not alone—they’ve become a major force in charitable giving. In 2023, DAF assets topped $250 billion. That’s nearly double their total a decade ago, and it’s a fortune ready to be distributed to nonprofits!

While most nonprofits understand the basics of DAFs, there’s been a bit of murkiness around who these donors are and how to reach them.

The truth? Learning to engage DAF donors is crucial for building sustainable funding channels.

In this article, we’ll dive into who DAF donors are, how to capture their attention, and how to retain them for the long haul. When we’re done, you’ll know exactly how to connect with this powerful group of donors!

Understanding DAF Donors

Who are these mysterious donors, and what makes them tick?

First, a quick recap. A DAF works like a charitable savings account:

• Charitable organizations (like community organizations) establish funds for donor contributions.
• Donors give cash, stocks, real estate, or other assets.
• They receive an immediate tax deduction but can recommend grants to nonprofits over time.
• The sponsoring organization manages the assets and accepts requests for disbursement.

This allows donors to park assets now, then thoughtfully choose where they’ll have the greatest impact later.

Unlike quick, emotional donations triggered by a social media post, DAF gifts are typically strategic and carefully considered.

DAF donors are often high-net-worth individuals who:

• Prefer planned giving
• Value research and long-term impact
• In some cases, appreciate anonymity

Because the average DAF account is larger than $140,000, these donors have significant giving capacity, and many are deeply motivated to leave a lasting legacy.

So, how do you stand out with a group that’s thoughtful, strategic, and deliberate with their giving?

5 Strategies to Engage DAF Donors

Traditional fundraising still matters, but if you want to attract DAF gifts, there are a few smart extra steps you can take.

1. Teach DAF Donors What Sets You Apart

DAF donors want to make informed decisions. Help them by offering clear, factual information about your impact:

• Your website should highlight your mission, your outcomes, and your Employer Identification Number (EIN). Stick that in your footer or on your “contact us” page.
• Update your GuideStar and Charity Navigator profiles regularly, as they are important research stops for donors.
• Social media can be effective at sharing success stories and real impact numbers.

Even if you can’t quantify everything, share what you can. If you filled 1,000 backpacks for children in need, that’s an impact statistic.

Make it easy for donors to see your effectiveness immediately.

2. Make It Obvious You Accept DAF Gifts

Donors can’t recommend a grant if they don’t know you’re an option. Reach out to your donors!

• Send an email to supporters, explaining that you’re excited to accept DAF donations.
• Use social media announcements leading up to major campaigns, such as year-end giving, to remind donors about DAF options.
• Update your donation forms to include a DAF payment option (like DAFPay at CharityEngine.)

Tip: Use your nonprofit CRM to celebrate big birthdays (40, 50, 60) with a personal phone call. That’s a great time to mention DAFs as a tax-savvy giving strategy!

The easier you make it for donors to give through a DAF, the more likely they are to act.

3. Build Relationships with Financial Advisors

Want a shortcut to DAF donors? Get to know the people advising them.

Start close to home:

• Ask board members if they know bankers, attorneys, or financial advisors.
• Attend finance and estate planning events in your area.
• Host lunch-and-learns for local advisors to showcase your nonprofit.

And when you build those relationships, offer value first. Share impact reports, invite advisors to site visits and events, and provide one-pagers or other compelling material they can share with clients.

When advisors trust your mission, they’ll recommend you. This can turn one relationship into many donor connections.

4. Spot DAF Donors, Then Make it Personal

DAF donors might be hiding in plain sight!

Did you know that more than 26 million Americans have access to workplace-giving programs, such as matching gifts, that use DAFs? They’re already in your database!

• Check email addresses. If you have many gifts from employees at the same company, this can signal DAF-based giving.
• Prospect research and wealth screening tools, sometimes built into your CRM, can help identify donors with DAF access.
• Send an email educating supporters about DAFS and let interested donors self-identify.

Once you know who your DAF donors are, plan personal, strategic outreach asking them to recommend a grant for your nonprofit.

5. Offer Donors a Legacy That Will Make Them Proud

Many DAF donors are motivated by the idea of lasting impact, so make it easy for them to create a meaningful legacy.

• They can fund a tangible product, like a community garden or a scholarship fund.
• Invite several mid-level donors to leave a legacy together. They can even name it!
• Consider ideas that reflect innovation, mentorship, or social change to appeal to DAF donors.

The goal isn’t so much prestige as it is purpose. Offering timeless impact will appeal to their deepest motivations.

How to Retain DAF Donors

Keeping DAF donors engaged looks a lot like major gift stewardship, but with a few important tweaks.

• Thank the right person! Even if the check comes from Fidelity or Schwab, thank the donor who recommended the gift.
• Personalize consistently, using your CRM to customize outreach based on the donor’s giving history.
• Invite ongoing engagement through events and volunteer opportunities. You want them to continue to see the value of their gift.

And when these relationships are established, consider asking them for a more regular gift from their DAF, and even consider talking about planned giving.

DAF Donors are Within Reach and Looking for You!

Donor-Advised Funds are more than a buzzword. They’re the future of strategic philanthropy!

And they’re not distant or anonymous, murky figures. They’re thoughtful, impact-driven neighbors and existing donors who want to make a difference with nonprofits they trust.

When you offer education, build connections, create a personalized experience, and show them how to leave a lasting legacy, you’ll unlock support that can sustain your organization for years to come.

The donors are out there, ready to be inspired! Now it’s your turn to reach them.