Harnessing the Power of Donor-Advised Funds for Your Year-End Fundraising

The hype around Donor-Advised Funds (DAFs) is real, and it’s reshaping how people give. DAFs are on the rise with donors who appreciate their flexibility, tax benefits, and potential for greater impact with giving. For nonprofits, they present a valuable opportunity to maximize year-end contributions.

Is your organization ready to take full advantage of this powerful giving tool?

In this post I’ll explain why DAFs are popular, how to set up your website to receive these types of donations, and share tips for encouraging your donors to use DAFs for their year-end giving.

Why DAFs Matter Right Now

DAFs are more than a passing trend; they’re shaping the future of philanthropy Here’s how they work: donors contribute assets like cash, stocks, or even cryptocurrency to an investment fund at a major financial institution, like Charles Schwab or Vanguard. Donors receive an immediate tax deduction but can decide over time which organizations they want to support through their generosity. Donors have embraced DAFs because of their flexibility and control, especially for year-end giving.

For nonprofits, DAFs can mean access to a larger pool of donations and supporters. To benefit from DAFs, your website and fundraising platforms must be set up to receive these contributions. You will also need to share with your donors that giving through a DAF is not just a choice but THE choice for maximizing their impact.

Getting Your Organization DAF-Ready

With the year-end fundraising push on the horizon, ensuring that your donation forms and fundraising platforms are ready to accept DAF gifts is crucial. Here’s your set-up checklist:

• Update Your Donation Forms: Make sure every donation form you use indicates DAFs as a giving option. This could mean adding a specific field where donors can specify that their contribution is through a DAF and setting up a link to a resource that guides them through the DAF donation process.

• Have DAF Options Across All Your Fundraising Pages: Don’t stop with just your main donation form. Ensure that all your fundraising pages—whether for specific campaigns, events, or general donations—mention DAFs as a viable option. Consistent messaging across your website will make it more likely that your donors know that your organization welcomes DAF contributions.

• Consider a DAF Payment Gateway or Widget: Always make the giving process as easy as possible. If you can, integrate a DAF-specific payment option into your donation form so donors can make these types of contributions right on your fundraising page. Many platforms now offer DAF-specific payment gateways such as Chariot’s DAFpay, and widgets like DAF Direct and DAFwidget can be embedded into forms.

How to Get Donors Excited About Using DAFs

Getting your donation forms DAF-ready is just the beginning. Next you’ll need to let your donors know that your organization accepts DAF contributions, and actively encourage them to use this tool for their year-end giving. Here’s your go-to game plan:

• Educate Your Donors: Many donors don’t fully understand how DAFs work, or know that they can use them to support your organization. Use email campaigns, social media, and your website to explain what DAFs are, how they benefit donors, and why year-end giving is the perfect time to use them.

• Highlight the Benefits: Don’t just tell donors about DAFs—show them why it’s a smart choice. Emphasize the advantages, like maximizing tax benefits and making a greater impact with their giving. Make clear that donating through a DAF isn’t just another option; it’s a more powerful way to support your organization.

• Personalize Your Outreach: Not every donor is the same so your messaging shouldn’t be either. Personalized outreach will significantly increase the chances that your supporters will give through their DAF. Use your marketing automation tools to segment your donor list and tailor your communications to those most likely to have a DAF.

• Make Giving Simple: We cannot emphasize enough that the giving process should be as easy as possible. Provide clear, straightforward instructions for giving through a DAF on your website. Make sure your team is ready to quickly assist donors with any questions they might have.

 A Case Study in Proactive DAF Strategy

Huntsman Cancer Foundation collaborated with Firefly Partners to add a DAF payment gateway to their forms. By taking this proactive step they’ll be able to seamlessly receive DAF contributions during end-of-year giving, ensuring that they’re prepared for this peak fundraising season.

By integrating Chariot’s DAFpay into their Engaging Networks donation form, donors can contribute directly from their DAFs to the organization. By ensuring the DAF giving experience is quick and simple, Huntsman Cancer Foundation is on track to have a successful year-end campaign that engages more donors and raises critical funds for their cancer research and care programs.

Your Action Plan

Make sure your organization is ready to maximize the potential of DAFs for year-end fundraising. Here are your next steps:

• Review Your Donation Forms: Audit all your donation forms and fundraising pages to ensure DAF options are clearly presented. Add fields or buttons if needed.

• Educate and Engage: Use every communication channel at your disposal to educate your donors about DAFs and encourage them to use this option. Highlight the benefits and make it clear how they will make the greatest impact for your organization by giving through their DAF.

• Consider a DAF Widget: If it’s feasible, integrate a DAF widget into your website. This can make the donation process smoother for donors.

• Train Your Team: Ensure your team is up to speed on DAFs and ready to help donors who have questions or need assistance. A knowledgeable team can make all the difference in converting DAF prospects into actual contributions.

• Monitor and Adjust: As your year-end campaign progresses, keep an eye on how your DAF integration is performing. Be ready to tweak your strategy if needed.

Conclusion: Don’t Miss Out on DAFs in 2024

DAFs are not a fleeting fad—they can elevate your organization’s long-term fundraising potential. By optimizing your donation forms, educating your donors, and simplifying the giving process, you can tap into this growing source of funds.

Now is the time to get DAF-ready. Reconfigure your online tools to receive DAF contributions and get the word out to your donors about the benefits of giving through a DAF. With preparation and the right strategy, DAF contributions will play a significant role in your year-end success.