Nonprofits across all sectors—from health and hospitals to animal welfare and food banks—are navigating the evolving landscape of donor-advised funds (DAFs). With 1,250 organizations participating, the first-ever DAF Day on Oct. 10 was a huge success. This highlights the incredible potential that DAFs hold for nonprofits.
I’ve noticed a common theme among the organizations I work with: There’s both excitement and a bit of uncertainty about how to best engage this donor segment. That’s why I wanted to take the opportunity to address the questions and interest around DAF donors, while sharing practical steps to help nonprofits like yours maximize this growing fundraising opportunity.
With 17 years in fundraising strategy, I’ve seen firsthand how DAFs can provide nonprofits with stable support and long-term funding opportunities. DAF gifts can strengthen your nonprofit’s financial health as these funds are less impacted by inflation and consumer confidence.
In my role as the strategic lead for RKD’s hospital and health organizations, I’m often asked about best practices for attracting and retaining DAF donors. To help your organization make the most of this channel, I’ve compiled five actionable steps for DAF acquisition and retention that you can implement immediately.
1. Optimize your online presence for DAF gifts
Make it easy for donors to locate DAF information on your website. Ensure your organization appears in search results when donors look up your name in their DAF portal.
A dedicated “Ways to Give” page with a clear link to DAF information can increase visibility, and a donation widget can simplify the process. Below, the Pancreatic Cancer Action Network does a great job highlighting DAFs on their website.
As I advise clients, think of your DAF information as part of your standard donor journey. The goal is to reduce friction so donors can contribute effortlessly.
2. Integrate DAF messaging into all appeals
Now that you’ve made it easy for donors to make these gifts, you need to tell them. Many donors are unaware of their ability to use DAFs to give directly to the causes they care about. Take the time to provide clear, accessible information about DAFs and integrate the messaging across all communication channels.
Repetition is key in fundraising, and DAFs should be no exception. The more informed donors are, the more likely they’ll consider using their DAFs to make impactful, consistent gifts to your organization. Include DAF information in direct mail, emails and newsletters. A small message on the back of a reply slip, a message in a P.S. or a banner at the bottom of an email can be a constant reminder.
3. Consider targeted DAF-only campaigns
If your organization has a well-developed DAF audience, consider dedicating specific campaigns to them.
For clients with a strong DAF donor base, we’ve seen success using postcards and direct mail focused solely on DAF giving. These targeted appeals serve as a gentle nudge, making DAF gifts feel easy and intentional. You can use a similar approach with segmented email audience.
4. Model your data to identify potential DAF donors
We don’t always know who on our database has a DAF. By modeling your data, you can identify likely DAF holders and target them with personalized messaging.
Data modeling can uncover high-probability DAF donors, allowing you to engage them in a more tailored and effective manner.
5. Foster a collaborative relationship with financial advisors
Lastly, establish connections with financial advisors and institutions that manage DAFs. Financial advisors can become advocates for your organization, recommending it to clients with a philanthropic inclination.
Building these relationships can position your nonprofit as a preferred choice for DAF gifts, particularly if you’re a local or specialized organization.
Stay updated on DAF opportunities
As we reflect on the impact of the first-ever DAF Day, it’s exciting to think about the possibilities that lie ahead. The future of fundraising is here, and DAFs are a crucial part of it.
To stay in the loop on all things related to donor-advised funds, we encourage you to register with DAF Day and stay informed on the latest insights and opportunities as you plan efforts to implement DAF strategies into your fundraising plans.
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