How Can You Improve Your Relationship With Donors Who Give Through Donor-advised Funds?
A donor-advised fund is a charitable contributions account that is opened only to invest in, grow, and eventually maximize the number of assets a donor is willing to give to charity.
DAFs, at their base, are seamless giving vehicles that relieve donors and NGOs of administrative burdens. DAFs are especially well-positioned to optimize long-term philanthropic effect since they are designed to allow donors to build a varied portfolio of assets over time.
There is a war going on in Syria, and many people want to help. However, one of the biggest challenges is how to help Syrian Refugees?
Here Are A Few Ideas To Demonstrate That You’re DAF-Friendly
DAFs Should Be Discussed With Your Donors
Donors that open DAF accounts are passionate about giving back, and they create these accounts specifically to benefit charities. Funds donated to a DAF account can only be used for charitable activities once they’ve been deposited. Charity is a core value for DAF account users, and they frequently involve loved ones in the donating process.
Understand The Guidelines For DAF Sponsors
The IRS regulates DAF sponsors who are non-profit. We, like you, follow a set of well-established rules. Knowing the regulations surrounding DAFs can help guarantee that your company does not unwittingly violate them. DAF sponsors conduct due diligence on the beneficiary organization and the grant’s purpose as part of this process. The IRS will permit most groups to receive the award if they are in good standing.
Your Entire Crew Should Be Educated
DAF donors are clever, strategic donors who use their DAF accounts to make quick, easy, and large donations. Recognising their thinking will go a long way toward successfully educating and convincing people to donate to your nonprofit.
For Difficult Assets, Recommend That Your Donors Use DAFs
Many donor-advised fund sponsors have the information and expertise to sell a variety of complex funds and convert the proceeds to charity dollars. When philanthropic contributions are spent for growth, complex assets such as real estate, personal equity shares, stocks, insurance policies, artwork, and more may have the value to provide a lengthy charitable effect.
Make Relationships With Individual Donors
True, only a tiny minority of our donors prefer to give anonymously, and we honour their preferences. However, if donors have suggested grants to your organisation through a DAF, they are familiar with it and are willing to support it.
Reaching out directly to donors is the most effective approach for NGOs to communicate with DAF account advisers.
Donors with DAF accounts are likely already in contact with your organisation. Reminding donors that your organisation is DAF-friendly is a terrific approach to persuade them to continue with their donations.
Because the vast majority of donor-advised fund donors do not give anonymously, be sure to express your gratitude to them immediately. While you may not be able to thank anonymous contributors explicitly, you can confirm the receipt of a contribution by recognising anonymous grants on your social media pages, website, and in all donor correspondence. There’s a good chance that your message will get through and will increase your donors over time.