Donor-advised funds, often called DAFs, are becoming a popular way for donors to give. But for many nonprofits, they can also raise practical questions: How should you ask for DAF gifts? How do you track them correctly? And how can you steward the donor while keeping your records clean?
Join us June 24 at 12:30p EST for a free nonprofit webinar with Jill Kravitz, founder of Dominion Administrators, for a practical look at how nonprofits can better understand, encourage, and manage donor-advised fund gifts.
In this webinar, you’ll learn:
- How DAFs work and why donors often choose them
- How to ask for DAF gifts on your website, emails, direct mail, and appeals
- How to track DAF gifts properly using soft credits to support donor stewardship and cleaner audit records
This webinar is designed for nonprofits that want to make DAF giving easier for supporters while maintaining accurate donor records.
Frequently Asked Questions
- How should a small nonprofit ask donors to give through a donor-advised fund?
A small nonprofit can ask for donor-advised fund gifts by making DAF giving visible anywhere donors already see giving options, including the donation page, email appeals, direct mail, newsletters, and year-end campaigns. The message should be simple: if a donor has a donor-advised fund, they can recommend a grant to support your organization. Include your nonprofit’s legal name, EIN, mailing address, and contact information so donors can easily submit the recommendation through their DAF provider. - What information should we put on our website for donor-advised fund gifts?
Your nonprofit’s website should include clear DAF giving instructions, your legal organization name, EIN, mailing address, and a short explanation of how donors can recommend a grant from their donor-advised fund. It also helps to add a reminder asking donors to notify your organization when they recommend a DAF gift, since checks from sponsoring organizations may not always include the original donor’s name. - How do nonprofits track donor-advised fund gifts correctly?
Nonprofits should record the gift from the organization that legally sends the money, such as the DAF sponsor, community foundation, or financial institution. The original donor can be connected to the gift through a soft credit, note, relationship, or donor record field, depending on the donor database. This helps keep financial records clean while still allowing the nonprofit to thank and steward the person who recommended the gift. - Can we thank the donor who recommended a DAF gift?
Yes. Nonprofits should thank the donor who recommended the DAF gift, but the thank-you should not sound like a tax receipt for a direct donation. Since the donor already received a tax benefit when they contributed to the donor-advised fund, your message should focus on appreciation and impact rather than tax deductibility. A good thank-you might say, “Thank you for recommending a grant from your donor-advised fund to support our work.” - Why are donor-advised fund gifts hard for small nonprofits to manage?
DAF gifts can be tricky because the check may come from a sponsoring organization, not the individual donor. That can make it hard to know who recommended the gift, how to thank them, and how to connect the gift to future stewardship. A clear tracking process, consistent soft credits, and a donor database that can connect the gift to both the DAF sponsor and the recommending donors can help small nonprofits manage these gifts more accurately.
