9 Steps to Invest in your DAF Fundraising & Marketing Strategy

By Salo Serfati, CEO of Chariot Giving
Chariot improves giving from every DAF provider and is directly integrated with fundraising platforms.

Donor Advised Funds are the fastest growing vehicle in Philanthropy, with over $234 Billion ready to be donated to nonprofits. However, the vast majority of organizations are not making the most of this massive opportunity, and are too often missing out on deeper relationships with the most valuable donors out there.

Historically, organizations have only played a passive role in DAF fundraising. Here’s 9 tips for your organization to help market and fundraise using DAFs.

1. DAF familiarity is low & it’s time to get smart

Many nonprofits would state their comfort & familiarity with Donor Advised Funds as fairly unfamiliar with DAFs, even though they now make up 15% of total giving each year. The most important thing every fundraiser can do is learn more about Donor Advised Funds. That doesn’t stop with frontline fundraisers, it’s also important that broader teams, executives & boards understand the strategic importance and buy into the prioritization.

2. Discussing DAFs leads to deeper, more open conversations with donors and builds stronger relationships

Asking donors whether they utilize a DAF, can lead to a much deeper discussion about their philanthropic planning and giving decisions. Your comfort with the topic builds trust and leads to a more open and vulnerable dialogue. As a fundraiser and an organization, being able to discuss DAFs is a real competitive advantage with your highest-value donors.

3. Make sure the ease of giving with DAFs is all over your communications

The easiest step you can take to level up your DAF fundraising is to make sure you’re asking for DAF gifts! You get 2x as many DAF gifts when you ask for it and DAF gifts are 24x as large as credit card gifts - including language in your communications about Donor Advised Funds is relatively low effort for huge potential payoff.

4. There is brand new tech solutions that greatly improve the DAF giving experience

Most people are not aware that DAF giving can be incorporated into your donation forms and fundraising platforms, just like a credit card. That’s what Chariot built that is so innovative - allowing for 3-click & 15-second DAF donations right at the moment of inspiration in your fundraising process. You can check out a demo of Chariot here and the list of all the fundraising platforms Chariot is already integrated with here.

5. DAF donors are your highest potential donors, so track & steward them accordingly

A donor having a DAF is your best indicator that they’ll be a high value donor. People with DAFs are savvy and intentional donors that make much larger gifts, support more charities per year with more gifts per charity and are twice as likely to give again next year. It’s critical to have a tracking system set up in your CRM to tag donors you know have a DAF, but the real difference will come in bringing it up in more conversations and letting DAF donors identify themselves by incorporating a DAF payment option in your donation forms.

Chariot’s solution also ensures when a DAF gift is made, you know immediately and have the person’s name and email to thank right away instead of waiting weeks for a check or wire to show up with just a mailing address.

6. The number of DAF donors already supporting your org is likely growing 30% per year!

The most common question that comes up with nonprofits in general is “How do I find more DAF donors?” Finding DAF donors is, first and foremost, about knowing the people already supporting your organization better. The number of DAF accounts is growing 30% per year - that means 300,000 new accounts in 2022. Every year there are donors supporting your organization that have a DAF and you’ll only find that out by following takeaways 3-5 above!

7. Don’t bring scarcity mindset into your DAF strategy

Some people shy away from encouraging donors to start or use a DAF, because they are typically used to support multiple organizations and not fully dedicated to your organization. The reality is that when people start DAFs, it massively increases the amount that they are giving to charity. Being part of that conversation means you’re more likely to get a larger slice of that greatly increased pie.

8. Q4 is critical - over half of DAF contributions happen in October through December

Most folks are making decisions around their DAF contributions around year end because they are doing so in coordination with their annual tax planning. In fact, 55% of DAF contributions happen in Q4 - so DAFs are top of mind for donors and a great opportunity to mention them in materials and conversations.

9. Know the limits

While Donor-Advised Funds are a tremendous opportunity, they do come with important limits and restrictions that every fundraiser should be familiar with. Two of the most important things to keep in mind are:

• DAFs can not be used for any purchases from a nonprofit organization. Gala tickets, auction items, etc. are off limits because DAF grants can not be deemed as creating any benefit for the donor.
• Fundraisers should not be playing the role of financial advisor or legal counsel when it comes to philanthropic planning. It’s important to be familiar with key topics that donors are thinking through, but when it comes to giving financial or legal advice - leave that to the licensed professionals and keep yourself out of trouble!