Report Illustrates Best Practices for Fundraising With Donors Who Use Donor-Advised Funds
A new report, Reinventing the Cycle: Adapting Relationship Fundraising for Donors Who Use DAFs, by the DAF Research Collaborative uncovers best practices for donor advised fund (DAF) fundraising as DAFs are growing in popularity among donors. DAFs are charitable giving accounts that donors set up at sponsoring organizations, which then make grants to other charities at the donors’ request.
Based on interviews with professional fundraisers, the report offers strategies for identifying, cultivating, soliciting, and stewarding DAF donors. The report also includes a DAF-specific fundraising cycle outlining how the funds change nonprofit organizations’ fundraising management, while also highlighting the challenges and opportunities for nonprofits.
“Interviews with the fundraisers made it clear that DAFs affect every stage of the fundraising cycle,” said Genevieve Shaker, PhD, professor of Philanthropic Studies and Donald A. Campbell Chair in Fundraising Leadership at the Indiana University Lilly Family School of Philanthropy. “This illustrates that a tailored approach to the cycle is necessary.” Shaker authored the report along with Brigham Young University researchers Rachel M. Sumsion, MPA, and H. Daniel Heist, PhD, under the auspices of the DAF Research Collaborative. Heist earned his master’s degree in Philanthropic Studies from the IU Lilly Family School of Philanthropy.
This report provides a unique perspective on how fundraising processes and cycles are implemented. Every stage of the new cycle includes insights to build better relationships with donors who use DAFs. By addressing these elements, fundraisers can strengthen their donor relationships and craft customized solicitations.
“Because DAF dollars are already earmarked for charitable purposes, fundraisers reported greater confidence and less anxiety when soliciting DAF donors,” said Shaker. “They used relationship-driven strategies and refining their administrative processes. By doing this nonprofits can not only navigate the complexities of DAF fundraising but also unlock new avenues for donor engagement and long-term impact."
The report explores the roles that fundraisers play working with DAF donors and provides actionable insights and recommendations on how professional fundraisers can work more effectively with DAF donors. It was funded with grant support from the AFP Foundation for Philanthropy William C. “Bill” Levis Fundraising Research Fund.
As the number of DAFs grows, fundraisers must stay informed about the evolving landscape around this giving vehicle while adapting their strategies to maximize donor engagement. Fundraisers’ unique role in DAF giving positions them to shape organizational practices that facilitate these contributions and help donors use their funds in impactful ways. Ultimately, more informed fundraisers have the opportunity to raise more DAF dollars for their organizations and the nonprofit sector.
Source: Lilly Family School of Philanthropy
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
