Understanding Donor-Advised Funds: A Powerful Giving Tool for Today’s Fundraising Landscape

In this episode of All About Capital Campaigns, Amy Eisenstein hosts Melissa Bank Stepno from Helen Brown Group, a leading prospect research firm. Melissa brings her extensive knowledge to explore donor-advised funds (DAFs) and their transformative role in the nonprofit sector. With DAFs becoming a popular charitable giving vehicle, nonprofit leaders often have questions. Melissa explains what DAFs are, their tax advantages, and how they function as a “giving bank account” managed by nonprofits or financial institutions on behalf of donors. Discover the differences between DAF sponsors—community foundations, financial institutions, and single-issue funds like religious organizations—and how each contributes uniquely to the landscape of donor-advised funds. The episode dives into why donors choose DAFs beyond tax benefits, including simplicity, flexibility, and even anonymity. Melissa addresses a common question among nonprofit professionals: Are DAFs helping or hindering philanthropy? By unpacking both the advantages and challenges, such as the “distance” sometimes created between donor and organization, she sheds light on how fundraisers can build strong relationships with DAF holders and why this knowledge is crucial for campaign success. Amy and Melissa also discuss essential tools, like the DAFinitive database developed by the Helen Brown Group, which allows nonprofits to research and identify potential high-value DAF donors. Listen in for practical strategies to engage with DAF donors, including tips on how to leverage communication channels and online tools to facilitate DAF giving directly from your organization’s website. By the end, you’ll have a clear understanding of how to integrate DAFs into your fundraising strategy, connect with these uniquely positioned donors, and harness the full potential of donor-advised funds to boost your next campaign. Tune in to hear why understanding donor-advised funds is more important than ever for fundraisers and how DAFs can become a valuable part of your nonprofit’s campaign strategy. For more free capital campaign resources, visit https://capitalcampaignpro.com/campaign-resources