{"id":4634,"date":"2020-08-27T13:48:12","date_gmt":"2020-08-27T18:48:12","guid":{"rendered":"https:\/\/www.nptrust.org\/?p=4634"},"modified":"2022-03-28T08:05:15","modified_gmt":"2022-03-28T13:05:15","slug":"getting-to-know-your-daf-donors-three-strategies-fundraisers-can-use-to-reach-daf-donors-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.nptrust.org\/philanthropic-resources\/philanthropist\/getting-to-know-your-daf-donors-three-strategies-fundraisers-can-use-to-reach-daf-donors-during-covid-19\/","title":{"rendered":"Getting to Know Your DAF Donors: Three Strategies Fundraisers Can Use to Reach DAF Donors During COVID-19"},"content":{"rendered":"

Since the COVID-19 pandemic began, individuals and families with donor-advised funds (DAFs) have shown their commitment to philanthropy with an outpouring of support. In early spring, National Philanthropic Trust (NPT) donors recommended double the dollar amount in grants compared to the same time period last year.<\/p>\n

Here\u2019s a quick refresher on how DAFs work: Donors establish a DAF at a public charity, which serves as the DAF sponsor. After that, the donors make a contribution to their DAF, receive an immediate tax benefit and then recommend grants from the DAF to qualified charities over time. The DAF acts as a vehicle for organizing and streamlining the donors\u2019 giving, but the end goal is to distribute funds to qualifying nonprofits like yours.<\/p>\n

Today, there are more than 728,000 individual DAFs according to NPT\u2019s 2019 DAF Report<\/a>.\u00a0The growing popularity of DAFs means that your donors are more likely than ever to be using donor-advised funds to help manage their giving. To help you\u00a0understand your DAF donors,\u00a0we are highlighting the\u00a0characteristics\u00a0DAF donors\u00a0tend to share\u2014and how\u00a0you can\u00a0use this information\u00a0to shape your fundraising strategy.<\/p>\n

1. DAF holders are committed givers<\/strong>.\u00a0Establishing\u00a0a DAF is an indicator that a donor is committed to philanthropy.\u00a0Contributions, once made to a DAF, are\u00a0no longer the\u00a0donor\u2019s\u00a0to spend\u2014they can only use them to recommend grants.\u00a0This makes DAFs a great planning tool to ensure charitable funds are available even in volatile times; while other forms of giving tend to drop during economic downturns,\u00a0DAF donors continue to\u00a0recommend grants\u00a0at the same rate<\/a>. During the Great Recession of 2009, grantmaking from DAFs remained constant, according to a paper<\/a> published by the National Bureau of Economic Research. And in the economic downturn caused by the COVID-19 pandemic, donors with an NPT DAF have increased their grantmaking dramatically.
\nStrategy<\/em><\/strong>:\u00a0During these difficult times, consider targeting\u00a0your appeals to\u00a0donors who have given through DAFs. You can also ask DAF donors to\u00a0commit to recommending\u00a0recurring grants, which are available with most DAF sponsors.<\/p>\n

2. DAF donors use their DAFs for current and<\/em> future grantmaking<\/strong>. Some donors use their DAF to save for a major gift or even to pre-fund their giving in retirement. But most DAF donors make regular grants and are rarely inactive. Whereas private foundations have an average payout rate of around 5 percent, the average DAF payout rate is 20 percent. DAF donors clearly want to give\u2014but you need to show them that a gift to your organization will have a meaningful impact. Fewer than half of wealthy donors are sure that their gift is having the impact they intend, according to the 2018 US Trust Study of High Net Worth Philanthropy<\/a>.
\nStrategy<\/em><\/strong>:\u00a0Build donor confidence\u00a0by letting them\u00a0know\u00a0how their grant is making a difference.\u00a0In addition to presenting broad metrics\u2014the number of\u00a0schoolchildren provided with meals every week during the shutdown, or the number of personal protective equipment kits delivered to medical workers\u2014it often helps to provide\u00a0your donors\u00a0with\u00a0a story of one individual who benefited from their help.\u00a0This brings giving to a personal, relatable level, and it will help donors feel\u00a0confident\u00a0that their gifts\u00a0are having an\u00a0impact.<\/p>\n

3. DAF donors support multiple charities and can respond to new needs swiftly. <\/strong>The ability to organize and streamline charitable giving is a common reason for a donor to choose a DAF. With a DAF, donors make one contribution, receive one tax receipt and keep tabs on multiple grant recommendations all from one account. Since DAFs aren\u2019t tied to a grantmaking cycle they can be a responsive and nimble source of revenue for charities.
\nStrategy<\/em><\/strong>:\u00a0Keep in mind that\u00a0while the DAF sponsor owns the assets and has ultimate say over whether a grant is approved, individual donors make\u00a0the\u00a0grant recommendations. In other words, there\u2019s no difference between cultivating a DAF donor and cultivating a donor who may elect to give through a family foundation; it\u2019s the donor\u00a0you want\u00a0to reach,\u00a0not the charitable sponsor.\u00a0Also keep in mind that if a donor chooses to give with a DAF because it makes giving easy, you\u2019ll want to make granting to your organization easy, too. On your website and in other\u00a0solicitation materials,\u00a0mention that you accept grants from DAFs. Include language such as\u00a0\u201crecommend a grant\u00a0from your donor-advised fund,\u201d\u00a0just as you\u00a0would include\u00a0information about how to give with a credit card.\u00a0It\u2019s also a good idea to spotlight grants from DAFs in your newsletter.<\/p>\n

.<\/span><\/p>\n

\"\"<\/em><\/p>\n

Jenna Mulhall-Brereton is NPT\u2019s Chief Philanthropic Services Officer. She leads the team providing customized services to enable NPT\u2019s donors to develop and execute their philanthropic vision.<\/em><\/p>\n

NPT does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.<\/small><\/em><\/p>\n

To download a PDF of this <\/strong>blog post, click below:<\/strong><\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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