Global Donor-Advised Fund Trends Shaping Philanthropy
Donor-advised funds (DAFs) are an increasingly popular way for donors to give back to their communities. Over time, DAFs have become a mainstay of fundraising strategies globally — especially in global markets where people have limited means of making large donations.
Donor-advised funds have been around for decades, but only recently has significant growth in global usage of this type of vehicle by individuals and corporations made such an enormous impact. Continue reading to learn the steps your organization can implement or how to benefit from DAFs to receive additional or more significant donations from donors.
9 Steps Organizations Can Take To Engage With International DAF Holders
Educate yourself about donor-advised funds. The trend to make charitable gifts through DAFs will continue to grow, so fundraisers should take steps to ensure they understand how these contributions can help their organizations. A study released in 2021 illuminates the impact of DAFs and their space in the philanthropy landscape.
Ask donors how they prefer to donate, and if appropriate, determine if they have a DAF or other charitable vehicle. For example, some who have previously contributed by check or credit card may instead donate from their DAF account. Even international donors can use their DAF to support your organization.
Engage and cultivate relationships with staff who manage and support DAFs. You may be able to learn how DAFs can be used to support international grants to your organization by speaking with the staff at the DAF sponsor.
Evaluate contributions from DAF donors. Numerous studies have shown that donors who have DAF accounts are more generous when recommending grants from those accounts than making donations by check, donating by credit card, or appreciated stock.
Although a small percentage of grants from DAFs are anonymous, fundraisers should still send a thank-you to the DAF sponsor and request that the sponsor forward it to the donor. While not all DAF sponsors will do this, it is worth the effort.
Engage donors each time a grant from their DAF is received. Keep donors engaged with invitations for a site visit, volunteer activity, or fundraising event.
Understand that donating certain assets that have significantly appreciated in recent years to a DAF sponsor enables donors to make larger donations that can be granted out over time. Also, because the DAF sponsor does the work of accepting the asset, you save time, effort, and expense and simply receive the grant checks from the DAF sponsor.
Though it is difficult to determine the size of a donor’s DAF account, it is important to thank all DAF donors, even for small gifts.
Clearly indicate on your website that contributions from DAFs are accepted and welcomed. For example, TrustBridge Global encourages charities they work with to let donors know they can receive DAF contributions from anywhere in the world into their Charity Fund. Including that information on their website sends a message that the organization is efficient and accustomed to receiving large donations from DAFs.
Reap the Benefits of Working with Global DAFs
Challenges and restrictions can make global grantmaking complicated. For example, regulatory, legal, and taxation structures and the cost and complexity of vetting can restrict the scale of international grantmaking programs. This may cause donors to be hesitant or unaware that they can grant to foreign charities. However, fundraisers can benefit from working with the expertise a DAF offers to effectively and efficiently manage global donations.
Global DAF holders can be a significant source of funding for your organization and donors may come from any international location. Organizations that do not embrace this growing trend may miss an opportunity, while those that do will benefit from more frequent and significant donations. Moreover, implementing some of these small changes can substantially impact fundraising efforts.