DAFday is Here: How to Align Your Team for a Donor Advised Fund Surge
by Melanie Degnan, Marketing Director
Last week, I had the pleasure of attending the Donor Advised Funds (DAFs) Strategies event hosted by the Direct Marketing Fundraisers Association (DMFA). The session featured speakers from the Michael J. Fox Foundation for Parkinson’s Research and Chariot while the room was filled with nonprofit pros, all eager to learn how to unlock the potential of DAFs. From the latest trends to tactical strategies, one message was crystal clear: DAFs are no longer a niche giving vehicle—they’re becoming a crucial part of the philanthropic landscape.
With the rise in DAF giving, nonprofits need to get creative in how to communicate with these donors. The DMFA event sparked a lot of conversation about the importance of tailoring outreach and strengthening donor relationships. If your organization isn’t yet focusing on DAF donors, the time is now.
Why DAFday Is a Game Changer
October 10th, 2024 marks the first-ever DAFday—an exciting new initiative designed to educate, promote, and celebrate Donor Advised Funds. Over 1,200 organizations are participating in DAFday including nonprofits, Donor Advised Funds, and fundraising platforms to highlight the benefits of DAFs for donors and nonprofits alike.
With over $230 billion sitting in DAFs and more than three million people using them, it’s clear that this is a fundraising channel we can’t afford to ignore. DAF donors give twenty-four times as much and six times as often as the average donor – talk about a high-value audience!
DAFday is more than just an awareness day—it’s a movement to drive long-term philanthropic growth. With DAF contributions soaring, this day offers a chance to spotlight your nonprofit’s work to DAF holders who may not yet have you on their radar. Participating in DAFday activities can position your organization for future growth, helping you cultivate relationships with these generous and often repeat donors.
Best Practices for a Great Donor Experience
When it comes to DAFs, there’s one critical thing we can’t overlook: the need for internal alignment on donor communication strategies. As DAF giving increases, you’ll want to ensure that everyone—your marketing team, fundraising staff, and operations—is on the same page. A unified strategy means your messaging is consistent and on-point, no matter how your donors engage.
Having a seamless donor experience is especially vital with DAF donors, who may already have a vested interest in your cause but are often harder to engage through traditional direct-response channels. Use this as an opportunity to refine how you recognize, thank, and steward them. The organizations that prioritize a cohesive, audience-first approach will stand out as DAF giving continues to grow.
At Moore, we are seeing consistent DAF growth through our Donor AdvancementSM Practice, with managed donors outperforming those who are not actively engaged. These Ambassadors play a crucial role in deepening a donor’s connection to an organization. Exclusively dedicated to a nonprofit, they function as a seamless extension of the team. Their primary focus lies in nurturing relationships and enhancing the donor experience by capturing in-depth insights into giving interests, motivations, preferences, and personal details.
The beauty of having dedicated Donor Ambassadors is that it allows us to engage with donors on a personal level about DAF giving. Whether a donor is already giving through a DAF or needs to be educated on its benefits, our Donor Ambassadors have the unique opportunity to guide them through the process.
I reached out to our Donor Advancement team for their best practices around DAFs, and here’s what they shared:
Tried & True DAF Strategies from our Donor Advancement Team
1. Internal Alignment on DAFs
Ensure all fundraisers and relationship managers understand the mechanics of Donor Advised Funds (DAFs), so they can effectively engage donors and track gifts. We’ve seen firsthand how internal alignment can significantly improve donor experiences and, consequently, fundraising outcomes. As DAFday brings more attention to this giving method, now is the perfect time to review and refine your organization’s approach to DAF donors.
2. Thank DAF Donors Appropriately
Even though donors receive tax receipts from their DAF provider, it’s crucial for your organization to personally thank them for their grant. Use meaningful, impactful messaging that strengthens the connection.
3. Custom Stewardship Messaging
Tailor your messaging for DAF donors. Phrases like “Your Donor Advised Fund gifts have made an incredible impact” personalize the experience and foster deeper donor relationships.
This is also a great opportunity to invite conversation with phrases like, “I’d really love to hear what inspires you to give through your Donor Advised Fund. What programs are you most passionate about?”
4. Encourage Recurring Grants
Invite DAF donors to consider setting up recurring grants from their fund. It’s a convenient way to provide consistent, ongoing support without repeated transactions.
5. Long-Term Stewardship Beyond DAFday
Avoid focusing solely on DAFday or short-term campaigns. Maintain ongoing communication and foster long-term relationships with DAF donors well beyond special events.
6. Build The Right Audience
Modeling and big data can both help identify people who are most likely to have a DAF and give DAF gifts even if they aren’t identified as DAF givers on your file. This means you can customize your DAF asks to those most likely to respond and help you build your file of DAF donors.
7. Educate, Educate, Educate
According to a recent poll, only 17% of Americans are familiar with Donor Advised Funds, highlighting the need for greater education. For those unfamiliar with DAFs, providing clear, educational content about their benefits is crucial.
- Just Ask: Last year, a client survey revealed that mid-level donors, despite not having previously given through a DAF, expressed a strong desire to learn more about it. In fact, their interest in DAFs surpassed other topics, underscoring the significant growth potential in this area.
- Subtle Reminders: Reach out to donors whose DAF status is unknown, incorporating subtle reminders in email P.S. sections to direct them to the client’s DAF webpage for more information.
- Offer Dedicated Support: It’s important to foster personal connections with donors around DAF giving. However, effective relationship management demands time and resources. Guiding donors through the process, answering questions, expressing gratitude, and demonstrating the impact of their support requires dedication—but the long-term rewards can be substantial.
Remember, every interaction with a donor is an opportunity to strengthen your relationship with them. By ensuring your team is aligned and well-informed about DAFs, you’re setting the stage for more effective fundraising and stronger donor relationships in the long run.
Mid-level Impact
The growing focus on DAFs is sure to increase overall giving, but it could also create significant movement within your mid-level giving program. In addition to building relationships with these donors, it’s important to also have business rules in place to deal with the impact.
Our Donor Advancement team at Moore is well-versed in creating business rules and dynamic moves management systems to maximize the value of donor portfolios. Should you need a little extra help, you know where to find us.
Are you ready for DAFday and the future of DAF giving? Let’s make sure your organization is prepared to make the most of this exciting opportunity!
Want to learn more about DAF donor strategies? Check out the recording of our recent webinar Effectively Promoting Donor-Advised Fund Giving for Maximum Year-End Impact.
