As we usher in the first-ever DAF Day on October 10th, it’s an opportune moment to dive into why Donor-Advised Funds (DAFs) have become a cornerstone of modern philanthropy.
Why Participate in DAF Day?
DAFs have been transformative, proving to be a smart and effective choice for generous giving. The rise of DAFs as a preferred giving vehicle is evident in their remarkable growth since 2019, as highlighted in the DAF Fundraising Report. In stark contrast, the median growth rate of non-DAF fundraising efforts was only 1% during the same period, underscoring the stability and potential of DAFs.
This growth is not just a statistic; it’s a lifeline for many nonprofits navigating challenging fundraising landscapes. DAFs provide financial stability, allowing organizations to sustain their missions. With such significant potential, it’s clear why participating in DAF Day is worthwhile and essential.
5 Tips for Maximizing DAF Donations
To fully leverage the potential of DAFs, consider these five strategic tips for your fundraising efforts on DAF Day and beyond:
1. Promote DAFs as a Giving Option in All Direct Mail Replies
Your direct mail campaigns are a direct line to your supporters, and promoting DAFs within these communications is crucial. Include clear, concise information about DAFs as a giving option in your direct mail replies. Tailor your messaging to highlight the benefits and ease of contributing through DAFs. By doing so, you make it convenient for donors who prefer this method, thereby broadening your donation base. By leading the conversation with education, you take control of ushering your supporters through a new path of support.
2. Create a Dedicated Website Giving Page for DAFs
A dedicated page for DAF donations on your website can significantly enhance and streamline the donor experience. This page should include detailed instructions on how to give via DAFs, the advantages of using DAFs, and frequently asked questions to help donors through the process. Remember, the easier you make it for donors to give, the more likely they are to support your cause. Pro tip: include any existing metrics you might have about existing DAF donations, like how they were used and how they impacted your cause’s mission.
3. Versioning Language in Appeals to Incentivize Upgrades
DAF donors typically have a greater capacity for giving. Thus, it’s important to tailor your appeals to highlight opportunities for larger, impactful donations. Versioning your language—crafting specific messaging that speaks directly to DAF donors about higher giving levels and the enhanced impact of their contributions—can incentivize upgrades and larger gifts. This nuanced touch not only acknowledges their capacity but also fosters a deeper connection with your mission.
4. Establish Unique Acknowledgments for DAF Donors
Recognition matters. Crafting unique acknowledgments for DAF donors can go a long way in strengthening those relationships and encouraging others to follow suit. Whether it’s a personalized thank-you note, a special mention in your annual report, or an exclusive opportunity to engage with your organization, these gestures show appreciation and recognition, enhancing donor loyalty and encouraging sustained giving.
5. Create Unique Inserts and Print Elements Promoting DAF Giving
Integrate printed inserts and promotional materials that specifically talk about DAFs and their benefits into your existing fundraising packages. These can be included in newsletters, event programs, or any printed communications you send out. Making sure your supporters are constantly aware of DAFs as a giving option keeps this method top of mind and increases the likelihood of donations through this channel.
The Results of DAF Giving
The impact of DAF giving is significant and continues to grow. After many major DAF institutions eliminated minimum deposits in 2020, this form of giving became more accessible and popular across a broad spectrum of donors.
Our expertise in major gifts has allowed us to be at the forefront of incorporating DAFs into fundraising programs successfully. One of our partners, new to the mail market but with strong brand recognition, secured $400,000 in DAF gifts through the strategic implementation of the aforementioned tips. Additionally, a major human rights partner saw a nearly 50% increase in DAF revenue over two years, a testament to the strategy’s effectiveness.
Closing Thoughts of DAFs and DAF Day
As we recognize the first DAF Day, let’s harness the power of community and shared vision to drive forward our philanthropic efforts. By embracing these strategic steps, you can maximize the potential of DAF donations, ensuring sustainability and growth for your nonprofit missions. The journey toward building strong, meaningful relationships with donors is ever-evolving, but with optimism, proactive engagement, and a dash of creativity, we can achieve remarkable outcomes together.
Your community’s generosity is a beacon of hope, and with thoughtful strategies, you can ensure that this generosity continues to flourish, supporting the vital work you all strive to accomplish.
Don’t wait for DAF Day; start maximizing your DAF donations today.
