Today we are taking a deep dive into the world of Donor Advised Funds (DAFs) and their impact on nonprofit fundraising. Thankfully, I’ve had the chance to chat with Chariot’s Mitch Stein, Head of Strategy, to shed some light on the topic. So, grab a cup of coffee, and let’s get into the enlightening world of DAFs and digital giving.

What exactly is DAF giving?

DAF giving is where people use their Donor Advised Fund, which is like a charitable savings account, to make donations to nonprofits. Think of it as the philanthropic equivalent of a 401(k). There’s a staggering $230 billion sitting in DAFs right now. However, traditionally, giving from these accounts to charities has been a bit cumbersome.

That sounds like a goldmine for nonprofits! So, what’s the big deal about online DAF giving? Why should organizations get on board?

By integrating online DAF giving, like what is offered with Chariot’s DAFpay™️, organizations can streamline the process. This means donations are larger, engagement goes up, and everything becomes more efficient. For example, The Michael J. Fox Foundation saw gifts that were nine times larger through online DAF giving!

How can organizations start with online DAF giving?

Organizations can either check if their current platforms integrate with Chariot or sign up directly with them. It’s straightforward – they can add DAFpay™️ to their donation pages or forms by simply pasting HTML snippets. It’s all about making it seamless for donors to use their DAFs.

Let’s consider the pros and cons of DAFs.

DAFs are booming in popularity because they offer tax advantages and encourage more substantial charitable giving. However, nonprofits often struggle with receiving DAF gifts due to the lack of donor information and delayed processing. That’s where Chariot steps in, making the entire process digital and transparent.

What is the average donation size through DAFs when using Chariot?

While specific figures can vary, what’s notable is the significant increase in donation size – DAF donations are typically 23 times larger than the average online credit card gifts (Comparing Fidelity Charitable’s average gift size of $4,625 to the Blackbaud Institute’s average online credit card gift of $204).

How does Chariot’s solution integrate with existing nonprofit technologies?

Chariot has built custom APIs for seamless integration with platforms like Blackbaud’s Luminate Online, Raiser’s Edge and EveryAction. This ensures that DAFpay™️ data syncs smoothly with existing nonprofit tech products.

What are some marketing best practices for DAFs? 

Education, communication, and process simplification are key. Ensure your team understands DAFs, remind your donors about DAF giving, and make the process as easy as possible. Adopting tools like Chariot can transform DAF giving from cumbersome to convenient.

What is the cost to use DAFPay™️?

If organizations use DAFPay™️ through a platform we’re integrated with, there’s no upfront cost, just a processing fee. For others, we have different plans based on their needs. Plus, any client of Doing Good Digital gets a special discount!

TIP: If you use Luminate Online, we can add DAFPay™️ to your donation form and make sure it seamlessly blends into your form design. Check out our case study for Central Park Conservatory.

Finally

As you can tell, the world of DAF giving is evolving, and it’s time for nonprofits to harness its potential. If you are ready to start the conversation, please reach out to us and we can connect you with Mitch and the team at Chariot.