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!
Who are these mysterious donors, and what makes them tick?
First, a quick recap. A DAF works like a charitable savings account:
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:
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?
Traditional fundraising still matters, but if you want to attract DAF gifts, there are a few smart extra steps you can take.
DAF donors want to make informed decisions. Help them by offering clear, factual information about your impact:
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.
Donors can’t recommend a grant if they don’t know you’re an option. Reach out to your donors!
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.
Want a shortcut to DAF donors? Get to know the people advising them.
Start close to home:
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.
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!
Once you know who your DAF donors are, plan personal, strategic outreach asking them to recommend a grant for your nonprofit.
Many DAF donors are motivated by the idea of lasting impact, so make it easy for them to create a meaningful legacy.
The goal isn’t so much prestige as it is purpose. Offering timeless impact will appeal to their deepest motivations.
Keeping DAF donors engaged looks a lot like major gift stewardship, but with a few important tweaks.
And when these relationships are established, consider asking them for a more regular gift from their DAF, and even consider talking about planned giving.
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.