Donor-advised funds (DAFs) have become a transformative force in charitable giving. With more donors choosing to invest in DAFs, nonprofits are presented with outstanding opportunities and new challenges.
Forward-thinking organizations succeed with DAF fundraising by mastering three essentials:
Mastering these essentials makes it possible to cultivate relationships with DAF donors in ways that match their preferences and values.
Many nonprofit teams find it simple to process a credit card or a check, but DAF gifts can add layers of complexity. Often, grants arrive without clear information about the donors who sent them, or they come bundled with other workplace or anonymous gifts.
Yet it’s essential to identify these donors because they are highly committed and often give larger-than-average gifts. Focusing on the DAF donor experience can create meaningful connections and foster lasting loyalty if that experience is handled with care.
Always prioritize making DAF donors feel seen, understood, and valued.
All too often, DAF gifts are inadvertently treated as impersonal transactions because the process starts with a third-party fund. Nonprofits might send a generic receipt to a DAF sponsor but fail to acknowledge and thank the generous individual behind the grant.
This is a missed opportunity because DAF donors are people with strong philanthropic intentions. Timely, personalized recognition sets the optimal tone for future giving.
Whenever possible, send thank-you notes, emails, or calls tailored to the donor, not just to the sponsoring institution. Even a short, handwritten note can leave a lasting impression and encourage the donor to continue supporting your mission.
Tip: Honor DAF donors’ preferences for recognition, whether they desire anonymity or a named tribute.
Good stewardship depends on accurate tracking. When working with DAF donors, it’s no longer optional to keep reliable records about:
Yet DAF gifts can trip up even the most seasoned fundraising teams if systems are not set up for transparency and used consistently.
Challenges often begin with inconsistent attribution. It’s essential to record the DAF sponsor organizations as the legal sources (hard credit) and the donors themselves as the initiators (soft credit). Every donor-management system should have rules that address this nuance.
Standardize these recording processes across all departments. Avoid mixing DAF gifts together with other donation types, such as workplace giving or qualified charitable distributions, because this can muddy your data and communications.
Additionally, invest in regular data hygiene practices. Monthly reviews can help spot duplicate records, misattributed gifts, or missing donor information. If your system is not catching DAF donors consistently, collaborate with your finance and IT teams to troubleshoot and improve.
DAF donors are often organizers or optimizers, so they want their giving to feel structured and impactful. Once the gift is recognized and the donor is correctly tracked, the next step is stewardship.
Begin with a prompt and meaningful expression of gratitude. Acknowledge both receipt of the grant and its positive effect on your programs. When possible, share stories or project updates that help the donor experience the impact of their support. Effective stewardship requires ongoing communication, so include DAF donors in your regular updates, invite them to special events, and encourage them to reach out with questions or ideas.
Many organizations find that regular DAF donor touchpoints, such as inviting these supporters to participate in Giving Days or providing targeted impact reports, can transform one-time grants into annual or even semiannual support. Be sure to ask donors whether they have a DAF, and communicate your ability to accept DAF gifts clearly. Use language that assures DAF donors that they are understood and appreciated, and that their gift is being processed with care.
The goal is to see DAF donors not only as sources of revenue, but also — and especially — as valued members of your nonprofit’s community. When these elements work together, organizations can move beyond transactions into lasting relationships. This approach also helps to uncover deeper giving potential, allowing staff members to suggest leadership giving, planned gifts, and family engagement in philanthropy.
Donor-advised funds are here to stay. Nonprofits that master the essentials of recognizing, tracking, and stewarding DAF donors will build stronger connections and healthier bottom lines. TrueSense is committed to helping organizations move from complexity to effective fundraising, ensuring that every DAF donor feels that their generosity truly matters.