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March 5, 2025

jane bargothi

From the desk of
Jane M. Barghothi ¦ Associate Partner

 
 
 
 
Donor Advised Funds: Are They the Future of Fundraising?
Donor Advised Funds (DAFs) have been around for decades and recently have seen significant growth. In 2023, DAFs held $251.52 billion in assets, and grants to nonprofits totaled $54.77 billion. 

Though I do not think DAFs will be the only giving trend that will continue to grow, I do think all organizations need to think about and plan around donors and DAFs.

  • Make Giving Easy
    • Provide clear instructions on your organization’s website on how to make a DAF contribution.
    • Educate your staff and board members on DAFs so they will be prepared to discuss them with donors and prospects.
  • Communicate and Market DAF Giving
    • Run a specific DAF campaign.
    • Feature a DAF donor in a newsletter or on your website.
    • Send a specific DAF mailer to donors.
  • Highlight the Tax Benefits
    • Donors with DAFs are often motivated by the tax advantages they receive, including avoiding paying capital gains taxes on appreciated assets.
    • Remind donors of these tax benefits when discussing DAFs with them.
  • Acknowledge and Recognition
    • Acknowledge gifts made through DAFs just as you would with any other donor, including thank you notes and donor recognition.
    • Show the direct impact of the donor’s DAF gift.

The world of fundraising continues to evolve – donor advised funds will continue to grow. Having a plan for making the most of this giving vehicle will benefit your organization for generations to come.

  • Holly Welch Stubbing, President and CEO of the National Philanthropic Trust

DAFgiving360 Donors Award $7.7+ in 2024

SEMC2018DAFgiving360 (formerly Schwab Charitable) r eports that its donors contributed over $7.7 billion to charity in 2024, marking a 25% increase ($1.5 billion) year-over-year. Donors awarded more than 1.3 million grants in support of 151,000 individual nonprofits. Contributions included over $175 million for disaster relief. Seventy-two percent of grant recommendations were unrestricted, enabling organizations to allocate the funds where they were most needed swiftly, and one out of every three allocations was established as a recurring grant. Additionally, 83% of donors directed funds within their home state. PND 2-17

2025 Will Require More From Boards

Boards will be more important than ever as nonprofits navigate a tricky financial landscape and political uncertainty. If you have people that are not showing up to meetings and you have people that are not engaged, they’re not helping you with the fundraising, making it very difficult for an organization to be successful and to move forward.

Many leaders have noticed this problem, particularly following the pandemic. With so many board meetings happening over video calls, it’s harder to create a cohesive board culture. Board members may not spend much time together, which can lead to a lack of engagement.

Steps to Consider

  • Bring in a consultant to do a workshop with the board to clarify its role to help outline what they should be doing, detail how they fall short, and encourage them to either change or step down.
  • There should be clear conversations between the board and nonprofit leaders about how they plan to navigate the coming year.
  • Boards should regularly recruit new members with an emphasis on making the board better to reflect the makeup of the community.
  • Make sure your board is well-informed about the organization.

Having an engaged, skilled, diverse board will be even more important this year and moving forward. If you have a board that’s there as your partner in a really positive way, you will have a clear advantage. COP, 2-14

Philanthropy Can Play Crucial Role on Climate Issues

A report from the Milken Institute finds that philanthropic capital has significant potential to maximize impact on climate and environmental issues. According to the institute, although climate disasters are increasing, only about 2% of global philanthropic contributions are allocated to climate mitigation.

According to the report, four key areas of giving have emerged as both urgent and underfunded: deforestation; food systems—which include livestock, regenerative agriculture, and food waste; oceans, which encompass fisheries, maritime shipping, and the conservation and restoration of coastal habitats; and communications and outreach, covering audience research, effective messaging, community and media engagement, and K-12 education.

When establishing a strategy for philanthropic funders, the report suggests breaking down complex issues into manageable topics, avoiding the attempt to check too many boxes, funding initiatives while utilizing data, prioritizing long-term funding over short-term gains, and considering the full spectrum of philanthropic financial models. Regarding the operation of an ecosystem, the report advises combining and amplifying philanthropic efforts whenever possible, sharing knowledge with others, avoiding assumptions about the needs or wishes of individuals with a common material interest in a specific issue or project, fostering partnerships that enhance capacity, and balancing various perspectives.

The report, Priorities for Strategic Climate and Environmental Philanthropy, can be found here (PDF). PND, 2-9

We Know Atlanta Nonprofits

For more than 35 years, Alexander Haas has been a fixture in the Atlanta nonprofit community. We are honored to have worked with some of the largest, and some of the smallest, organizations that help make Atlanta a better place to live.
 

A Fresh Approach to Fundraising
Our services aren’t cookie cutter. We don’t operate with a boilerplate, merely changing names and locations. We craft each and every service we provide to match your organization’s unique needs, wants and abilities. We work hard and expect you to do the same. Together we can help you transform your institution, your fundraising, and the community you serve.

Whether your need is in Capital Campaign, Annual Fund Campaign, Major Gifts, Leadership Annual Giving, Planned Giving or all of the above, we take a fresh approach to nonprofit fundraising.