Making the Most of Donor Advised Funds: Tips for Nonprofits
As Donor Advised Funds (DAFs) continue to grow in popularity, nonprofits have an excellent opportunity to tap into this expanding pool of philanthropic dollars. But to do so effectively, organizations must go beyond awareness—they must actively educate donors and integrate DAFs into their fundraising strategies.
1. Make DAF Giving Easy and Visible
Tip: Add a “Give via DAF” button to your donation page.
Example: Organizations like Feeding America and the American Red Cross have dedicated DAF giving pages that allow donors to initiate a grant directly from their DAF provider. This reduces friction and encourages giving.
Bonus: Use tools like DAF Direct, FreeWill, DAFwidget, Givebutter, or Chariot to embed giving functionality for Fidelity Charitable, Schwab Charitable, and others.
2. Educate Donors Through Targeted Communications
Tip: Include DAF education in newsletters, donor guides, and annual reports.
Example: A mid-sized arts nonprofit added a section in their year-end appeal explaining how DAFs work and how donors could use them to support the organization. They saw a 30% increase in DAF grants the following quarter.
Bonus: Host webinars or lunch-and-learns with financial advisors to demystify DAFs for your donor base.
3. Steward DAF Donors Like Major Donors
Tip: Treat DAF donors with the same care and attention as direct contributors.
Example: Since 95% of DAF grants include donor names and addresses, one nonprofit created a “DAF Donor Circle” to recognize and engage these supporters with exclusive updates and events.
Bonus: Send personalized thank-you notes and impact reports to reinforce the value of their giving.
4. Train Your Development Team
Tip: Ensure your staff understands how DAFs work and how to talk about them confidently.
Example: A regional health nonprofit trained its gift officers to ask donors, “Do you have a Donor Advised Fund?” during donor meetings. This simple question led to several six-figure grants that might have otherwise gone unclaimed.
Bonus: Create internal cheat sheets or FAQs for staff to reference during donor conversations.
5. Encourage Recurring DAF Grants
Tip: Ask donors to set up recurring grants from their DAFs.
Example: A nonprofit focused on education encouraged donors to schedule quarterly grants from their DAFs. This created a predictable revenue stream and strengthened donor retention.
Bonus: Offer a sustainer-style or giving model tailored to DAF donors.
Final Thoughts
Donor Advised Funds are no longer a niche tool—they’re a mainstream giving vehicle used by a wide range of donors. By making DAF giving easy, educating donors, and stewarding these relationships thoughtfully, nonprofits can unlock a powerful source of sustainable funding.
Don’t wait for donors to bring up DAFs—start the conversation, simplify the process, and watch your fundraising grow.
Do you have specific questions about DAFs or need help incorporating DAF giving in your fundraising program? Connect with one of our experts.
