{"id":30434,"date":"2024-10-15T09:00:00","date_gmt":"2024-10-15T13:00:00","guid":{"rendered":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/?p=30434"},"modified":"2025-09-24T11:08:42","modified_gmt":"2025-09-24T15:08:42","slug":"daf-best-practices","status":"publish","type":"post","link":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/fundraising-software\/daf-best-practices\/","title":{"rendered":"Strategies and Best Practices for Securing Donor-Advised Funds"},"content":{"rendered":"\n

Staying informed about the latest philanthropic trends is crucial for nonprofit fundraisers. One of the fastest-growing methods in charitable giving is the donor-advised fund (DAF). Nonprofits rely heavily on this type of funding for a variety of purposes. For instance, nearly 60%<\/a> of DAF grants were allocated for general nonprofit operating support, often a high-priority funding category.<\/p>\n

Let’s take a look at how DAFs work, their advantages, and strategies to integrate them into your fundraising efforts.<\/strong><\/p>\n

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The Essentials of Donor-Advised Funds: What You Need to Know<\/h2>\n

A donor-advised fund (DAF) is a giving account managed by a third-party sponsor, like a community foundation or public charity. Donors establish DAFs with assistance from financial advisors or estate attorneys. <\/p>\n

After setting up a DAF, donors can contribute various assets\u2014such as cash, stocks, or cryptocurrency\u2014and receive an immediate tax benefit. The funds are then invested to grow tax-free, allowing donors to recommend grants to their preferred charities over time. Another benefit for donors is that DAFs are simple to set up with limited paperwork required.<\/p>\n

To stay up-to-date on data related to DAFs in the nonprofit sector, check out reports published by The National Study on Donor Advised Funds<\/a>.<\/p>\n

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A nonprofit CRM can help you move from transactional relationships to transformational impact. For example, DonorPerfect includes robust relationship management tools<\/a> to help you build the kind of connections that result in DAFs, pledges, and monthly donations.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n

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4 Key Ways Donors Leverage DAFs<\/h2>\n

Understanding why donors choose DAFs can help position your organization to receive these gifts. Here are four common ways donors utilize DAFs:<\/p>\n