Most nonprofit organizations haven't tapped into DAFs for their fundraising strategy yet. Unlike your seasonal campaigns, DAFs need some education for your donors, staff, and board, and that's expected. But the extra effort you'll spend is minimal compared to the dazzling results.
According to the DAF Fundraising Report, a donor’s annual giving increases by 96 percent when they begin using a DAF. And while that’s a jaw-dropping number, it gets even better—the top 25 percent of DAF donors in the study gives 200 percent more.
If you’re ready to begin or reinvest in DAF fundraising, we’ve rounded up secrets to success from sought-after nonprofit leaders:
Amanda Brown Lierman, Executive Director at GoFundMe.org
Emily Rasmussen, Founder & CEO at Grapevine
Nohe Ka, Fred Hutch Cancer Center Executive Director, Gift Services and Data Management
Mitch Stein, Head of Strategy, Chariot
Before we reveal the secrets, let’s start with the basics, along with an exciting opportunity to reintroduce DAF giving to your entire donor community.
The seismic shift to DAF giving, explained
Across the nonprofit sector, DAF usage is growing 85 percent each year on average. These wow-worthy changes in donor behavior aren’t happening in a vacuum—your organization can inspire DAF giving, too.
If your donors aren’t giving by DAF, it’s an easy fix. Chances are, they probably don’t know DAFs exist. Only 17 percent of US adults know what a DAF is, and 42 percent of nonprofits don’t mention DAFs in their marketing.
To explain DAFs to donors, start in the simplest terms: a DAF is like a 401k for charitable giving. On a regular basis, you can automatically deposit funds into a DAF account that are specifically reserved for supporting the causes you care about.
As for DAF benefits, zero in on these three:
Accessibility: DAFs are for everybody. In the past, DAF accounts required minimums that barred many donors from participating. Now, anyone can open a DAF account at any amount. A DAF gift can range from $20 to millions of dollars.
Convenience: DAFs make supporting organizations and helping out in times of crisis an easy decision. There’s no question of whether you can give—the funds are already waiting in your DAF account.
Additionally, many nonprofits are taking the middle person out of DAF giving by adding a DAFpay button to donation forms. That way, donors don’t have to contact a DAF manager. They can give from their DAF in three quick clicks, just like they would using PayPal or a credit card. And best of all, your organization gets the funds and the donor’s contact information the moment they donate.
Philanthropy management: When a donor gives from a DAF, they only need to include their contribution to their DAF in their tax filing—no scrambling to find random receipts. Plus, this simple way to optimize your taxes means you have even more funds to give to your favorite organizations.
DAF Day: the perfect way to kick off DAF fundraising
DAF giving can only reach its potential if donors know about it. That’s why we’re coming together to spotlight the power of DAFs on DAF Day this October 10th.
On this day, DAF donors, DAFs, and nonprofits will unleash a wave of DAF giving to organizations throughout the US, and your organization is welcome to join us. DAF giving can only reach its potential if donors know about it. That’s why we’re coming together to spotlight the power of DAFs on DAF Day this October 10th.
On this day, DAF donors, DAFs, and nonprofits will unleash a wave of DAF giving to organizations throughout the US, and your organization is welcome to join us.
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Join the DAF Day movement for free, and we’ll send
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7 Secrets of DAF giving to influence your fundraising strategy
Now that you’re taking a closer look at DAF fundraising for your organization, here are the secrets to help you present DAF giving to your donor community.
Secret 1: Promote DAF benefits to every type of donor
Social media has made giving with friends a norm, and that’s a good thing. Now, people you know and love can start fundraisers for all kinds of things: annual races, birthday celebrations—even to promote the latest campaign of their favorite organization.
Nonprofit organizations can drive even more revenue for their missions by promoting DAF giving in these moments. Even donors that have a DAF will too often reach for their credit cards, but that means you’re missing out on the larger gifts that happen when donors give from their DAF instead.
In a study from the DAF Fundraising Report, DAF gifts were 20 times larger than non-DAF gifts, on average. Consider that this study excluded major gifts over $25,000, and you have every reason to encourage DAF giving in peer-to-peer fundraising.
For example, donors who give to March of Dimes increased their gift size by 8x when they switched from giving by credit card to giving through a DAF. And while the overall industry average for credit card gifts is $204, March of Dimes sees digital DAF gifts through DAFpay that average a whopping $1,100.
The reason for this dramatic difference in gift amounts is obvious. For DAF donors, charitable funds are readily available in their DAF account at any time. In other words, when an opportunity to give with folks they want to connect with arises, there’s no barrier to jumping in.
Secret 2: DAFs can come to the rescue in time-sensitive fundraising moments
Times of crisis and urgent needs can transform into the most compelling fundraising appeals. When a donor has a DAF, they have funds set aside to help your organization. All you need to do is craft your ask in a way that moves them.
When a donor is motivated by a crisis situation, they want to know that their gift is connected to direct action. Here are a few tips to ensure donors choose your nonprofit:
Be clear about your needs: What is the need and why? Where is the money going? A program? A project? Who is it helping and how?
Translate a gift amount to specific outcomes: $200 feeds all of our sweet shelter dogs for one week.
Ask donors to spread the word: Include an invitation for donors to do what they love—asking their networks to pitch in, too.
For even more engagement, consider regularly promoting the idea of matching gift campaigns to DAF donors. This way, they’ll already know what to do when an urgent need arises.
Secret 3: DAF gifts don’t have to be anonymous
In the past, just about every gift your organization received paired a name with the donated funds. But the norm for DAFs is quite different.
Traditionally, when a donor gives from their DAF account, they need to reach out to their DAF manager, who then awards the organization a grant. Oftentimes, the donor’s information is left off of the gift, and the receiving nonprofit only has a mysterious DAF name connected to it. And when DAF donations are given to a peer-to-peer fundraiser, the details are totally nonexistent.
The data problem with DAFs isn’t by design. It’s just a result of a clunky, outdated process. In fact, only 4 percent of DAF gifts are intended to be 100 percent anonymous.
Fortunately, there are some things you can do to get that DAF donor information so you can be sure to properly recognize the MVPs in your community:
Add a DAFpay button to your donation forms: DAFpay allows donors to give directly, so your nonprofit gets their data in real time.
Reach out to the DAF: A DAF manager may be able to share donor details with your organization if you ask.
Check with your major gifts team: Someone who regularly engages DAF donors might be able to reveal who “Smith Fund” is in an instant.
See if a similar-sized gift was made before: Some DAF donors make annual gifts that can be oddly specific so they are easier to identify. (For example, $10,432 made in 2022 and 2023)
Remember, donor data isn’t a nice-to-have. It’s the lifeblood of your organization. Someone who gives to your organization once is much more likely to give in the future, and you need their contact information to re-engage them.
Secret 4: DAFs are a massive opportunity for planned giving conversations
DAFs empower donors to create a lasting legacy for their entire family. We often see DAFs take on an integral role in the home, as parents invite their children to help them decide where and how to give. These conversations create generations of generous people who see beyond themselves, who show up in the world with a desire to make a difference—and who wouldn’t want that for their kids?
When it comes to planned giving conversations, DAFs should always be mentioned. A surprising thirty percent of DAF accounts are not handed down to a family member, so your organization could be named as the final recipient of their DAF balance if they were to pass away.
Secret 5: DAFs can be used for recurring gifts
According to the DAF Fundraising Report, DAF donor retention rates are 15 percent higher than non-DAF donors on average.
Because DAF donors consistently reserve money for charitable giving, committing to a recurring gift is an easier decision. In some ways, they’ve already done just that by having a DAF in the first place.
The best news? You’ll soon be able to promote recurring gifts without lifting a finger. DAFpay is currently rolling out recurring DAF gifts with select partners. If you’d like to learn more, reach out here.
While adding this button to your forms is a no-brainer, there’s one crucial question you need to consider if you really want to see recurring giving via DAF take off.
What does it mean to be a recurring DAF donor at your organization?
A recurring DAF donor isn’t someone who gives and disappears. They’re in it for the long haul. They’re someone who, month after month, fuels your ability to run your programs, pay your staff, and make your mission a reality.
A recurring DAF donor should be treated like exactly who they are—a dedicated member of your team. There are many ways you can elicit this feeling, including:
Providing them with personal updates about the impact of their gift
Recruiting them to serve as advisors for DAF-funded projects
Spotlighting their generosity in your newsletters
Or, you could simply ask a recurring DAF donor how they’d like to be involved and create exclusive opportunities tailored to their interests.
Secret 6: DAF donors can submit DAF gifts for employee matching
A staggering 78 percent of employees are unaware that their company offers matching gifts, so it’s no surprise that even more don’t know that their employer will match when they give via DAF.
Take a moment to reach out to partner companies with matching gift programs. In addition to requesting that they send employees a reminder, consider taking on a bit of the lift for them so they’re more likely to hit send. With your request, provide them an email template letting them know that they’ll match employee gifts, along with the added benefit that employees qualify for the match when they give via DAF.
Secret 7: DAF donors can be a part of a collective moment like a Giving Day
Donors give because they want to be a part of something bigger than themselves, so creating holidays to celebrate DAF giving as a collective is a great way to engage them—like DAF Day.
DAF Day is a wonderful opportunity to join together around DAF fundraising because the movement is already underway. Become a DAF Day participant, set up your DAF Day donation page, and start promoting DAFs in a new and delightfully social way.
Invite your donors to attend our next webinar that’s especially for them
DAF Day for Donors: Show Your Network Why You DAF
Thursday, September 26th at 5:00 PM
Get the most from your first DAF Day—for you,
your network, and your favorite causes
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