How to Start DAF Fundraising

Last week I shared my thoughts about DAFs, and I’ve been overwhelmed by the response. Fundraisers told me they realized they need to prioritize DAFs - despite their complaints - and the Canadian Donors Guide picked it up for their next publication!

I also received questions about how to fundraise from DAFs.  So let’s dive in!

The good news is getting started is easier than you might think. Simply follow these 5 steps:

1 - Understand what a DAF is.

DAF stands for Donor Advised Fund. It’s basically a charitable bank account. A donor can set one up with their financial institution, at a community foundation, or through a digital DAF service such as GiveWise in Canada. They get a tax receipt for their contribution right away, but can wait to grant it out (while the fund accumulates interest). In fact, there’s no minimum amount they need to give away.

Donors then “advise” the financial institution where to grant out the funds. Technically, the institution has final say on if a grant will be given, but it’s very rare for them to go against the donor’s wishes.

2- Have GREAT communications and fundraising in place.

Hate to break it to you - but DAFs won’t magically cure your fundraising woes. In fact, your ability to fundraise from DAFs is largely determined by how effective your current fundraising and comms are.

The majority of your DAF prospects are already in your database. Ultimately, a DAF is simply a giving tool, like any gift of asset. You can find them using major gifts best practices, enhanced with the DAF fundraising tips below. (Want to improve your major gifts fundraising? I recommend this video by Emma Lewzey, CFRE on how to uncover hidden major donors.)

You may get a surprise DAF gift on occasion, but it will come from effective communications and fundraising. For example, a community foundation officer may recommend a local charity to a DAF holder because they were on the news addressing an issue the donor cares about. That charity’s PR strategy will be paying off tenfold!

3 - Mention donor advised funds everywhere you can.

Add it to your email appeals, as a check box on your direct mail forms, at your gala tables, on your “donate” page, etc. Make it a top-of-mind way to give, no matter where your donors find themselves.

4 - Put your legal name and registration number visibly on your homepage.

Don’t bury it in the footer! This is the essential information a donor needs to give you their DAF gift – make it easy to find. (And this is important for legacy gifts, life insurance, and more).

5 - Mention DAFs in every giving conversation.

Once you’re ready to ask a donor, be sure to mention DAFs. You can add a line such as “you can make your contribution through a donor advised fund, stocks, or any other asset”. Or just ask your donor “do you have a donor advised fund”? And remember to stay curious – learn about why they set up the fund and what their vision for it is.

That’s it! It can be that simple to start your first DAF fundraising program – now get out there and tap into the billions held in these funds!

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