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Attracting and Stewarding Donor Advised Fund Holders

Attracting and Stewarding Donor-Advised Fund Holders

Donor-advised funds are top of mind for all of us working in fundraising, and those who choose to invest via a DAF should receive ample, individualized attention from organizations to cultivate their involvement over time. With DAFs on a consistent rise across the philanthropic landscape (according to the 2023 DAF Report from the National Philanthropic Trust, grantmaking from DAFs has more than doubled in the last five years – check out our previous post on Five Major Shifts in Fundraising Over the Last Five Years to learn what other areas you should spotlight) and many donors and organizations struggling to navigate this shift, attracting stewarding DAF holders in ways that address their specific needs and concerns should be a top goal in your stewardship plan.

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Jamie Garcia

How are Donor-Advised Fund Holders Different?

Individuals who give through a Donor-Advised Fund, aka DAF, are intentional with their giving and are philanthropically minded. They want to invest in organizations whose missions they connect with deeply and often put forth effort to research and learn about both organizations in their community and what benefits they may receive from establishing a DAF. DAF holders are typically interested in giving to multiple organizations, so we advise strategic steps to bring them in the door as well as strengthen their trust in your work together.

Attracting Donor-Advised Fund Holders

DAF holders (or those who can become DAF holders) may find your organization in many ways, and anticipating their needs and questions will greatly appeal to them. First and foremost, I recommend ensuring that your forward-facing development communications (from your appeals to your website) speak directly to all the giving mechanisms a high-capacity donor or prospect might be interested in, with attention to DAF giving. Language that invites the donor to connect directly with your fundraising staff if they are interested in giving beyond the typical cash, EFT, or check opens the door to more in-depth conversations and greater giving. As we alluded to above, you may have donors or prospects who are not far from becoming DAF holders. Being mindful of your donors’ giving habits will prepare you for the eventual question of “How does a DAF benefit me (and your organization)?” and possibly even relaying, “I have no idea how these things work.” Those giving at a high level may feel incredibly comfortable bringing these wonderings to your fundraising staff. In navigating the challenge of not giving tax or financial advice to donors yet still nurturing those interested in giving through a DAF, we advise leading with “Do you have a tax advisor? They would be a great resource for you as you consider changing how you invest. If not, have you researched more sophisticated ways to give?” This can expand their curiosity and point them in the right direction while giving them appropriate guidance (and reinforcing their trust in your organization) as they move toward DAF and other types of giving. Your organization’s digital and local footprint will also draw DAF holders your way. Consider those in your community that a high-capacity donor might connect with around their charitable contributions and financial decisions: community foundations, lawyers, and tax and financial advisors. Having positive relationships with your region’s community foundations ensures that when donors approach them to establish a fund, the foundation can direct them if your mission aligns with the donor’s interests (this is also beneficial for estate gifts where a designation was not fixed). Your community foundations should know who your organization is and what you do. Likewise, we recommend creating profiles online with major nonprofit search mechanisms a donor might use, such as GuideStar, to tap into additional established networks.

Stewarding Donor-Advised Fund Holders

In stewarding DAF holders, I see a lot of organizational system challenges that can be modified to serve this particular demographic. While many organizations work wonders in segmenting recurring donors, those who give digitally, and first-time donors, I have yet to see segmenting DAF holders for any communication or stewardship. If DAF holders are different (they research, plan, and are intentional), they should receive treatment that reflects the sophistication of their engagement with philanthropy and your organization. You may be thanking your recurring donors once a year. However, with an investment from a DAF, more significant communication is needed to show your appreciation for their commitment as you begin to individualize their journey with your organization. I recommend all organizations pause and thoughtfully consider how they are processing gifts they receive from a DAF, as I have seen these gifts missed time and time again. Many development teams don’t create the bandwidth to discover who a more elusive DAF holder is (we’ve all received a mysterious letter at some point with no indication of gift provenance) if the information is available – and by the time they do, weeks have passed since the donor indicated their DAF dollars should be sent to your organization. I’ve seen a significant lag in DAF holders’ receipt of their initial thank you from organizations. I cannot emphasize enough the importance of speeding up your processes to show appreciation for these gifts. Along these same lines, we advise educating your team beyond your development staff about DAF contributions – how the resources travel, the notion of “soft credit,” and most importantly, who should receive a thank-you from your organization. Especially in larger organizations where information may travel to finance, development, and then to a volunteer, those reaching out with appreciation must be given direction on who to contact. Adjusting your systems management and communication across departments and teams (beginning with accurate database entry) will ensure smooth and speedy gratitude is shared with your DAF holders.

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Meet Lauren

Lauren Sisneros

Lauren Sisneros is the founder of LS Consultants, LLC, a consulting firm that provides strategic advising and interim management support to nonprofit and education-focused organizations. A mission-driven leader with over 20 years of experience, Lauren brings a deep commitment to advancing equity across education, workforce development, and public policy.

With a keen understanding of complex systems and a results-oriented approach, Lauren partners with organizations to develop and implement strategies that are both effective and sustainable. Through LS Consultants, she delivers hands-on guidance in program management, board and stakeholder engagement, and leadership transitions, empowering mission-aligned teams to grow, adapt, and create lasting community impact.

Lauren has collaborated with a diverse portfolio of clients, including the Prosperity Denver Fund, Contractor Academy, Education Commission of the States, and Strong Start to Finish. Her work is grounded in a strong foundation of project management, nonprofit leadership, and policy analysis.

She holds a Bachelor’s degree in Business Administration from Colorado State University–Pueblo and a Master’s in Education from Colorado State University Global. Lauren is also a proud graduate of the University of Denver’s Latino Leadership Institute, a fellowship preparing Latino professionals for positions of influence across Colorado, and the Denver Metro Chamber Leadership Foundation’s Leadership Program, an 11-month civic leadership experience.

A Colorado native born and raised in the San Luis Valley, Lauren now lives in Lakewood, Colorado. She is a proud mother of two college students and a devoted grandmother who cherishes time with her family.

Throughout her career, Lauren has remained deeply dedicated to expanding access to opportunity, especially for underserved communities. Her work continues to center on shaping systems that are inclusive, community-driven, and equity-focused.

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Kyle Christensen

Kyle Christensen, M.P.A., is a program leader, facilitator, and trainer with more than 25 years of experience designing and delivering transformative learning experiences that advance leadership, civic engagement, and organizational change. He specializes in designing and evaluating leadership programs, facilitating team and organizational development, and guiding strategic planning processes that align purpose with measurable impact.

As founder of The Connected Leadership Project and consultant with Arrow Performance Group, Kyle partners with organizations such as the State of Colorado, CiviCO, and the University of Denver to design experiential leadership programs that build resilience, connection, and innovation. He also serves as program director for Leadership Veteran, an 8-month leadership initiative advancing the skills of professionals serving veteran communities.

Previously, Kyle directed Colorado State University Douglas County Extension, where he launched Colorado’s first Juntos 4-H program to expand pathways to higher education for Latinx youth and families. He also led the Family Leadership Training Institute of Colorado and has worked with institutions such as Peace Corps (Moldova), NYU Steinhardt, Centrul Educatia 2000+ (Romania), and the Council for Economic Education.

Kyle’s facilitation expertise is rooted in adult learning theory and supported by credentials such as Emergenetics, Strategic Doing, and Technology of Participation. He has led statewide and national trainings, peer learning cohorts, needs assessment processes, and community-centered planning efforts across government, nonprofit, and education sectors.

He holds an M.P.A. from New York University’s Wagner School of Public Service and a graduate certificate in Learning and Development from the University of Denver’s College of Professional Studies.

Kyle believes that the workplace should focus on continuous learning and growth, inclusive engagement, and creating a sense of belonging. “Why wouldn’t we hope for work environments that align with our values and our professional and personal growth aspirations?” He brings curiosity, compassion, and clarity to every engagement, and is most inspired when people find their voice, connect with others, and lead boldly in collective service.

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Jason Pemberton

Jason Pemberton is a multi-award winning facilitator, coach, independent executive board director, and strategist based in Denver, Colorado. Born in USA and raised in New Zealand, his entire career has been dedicated to Not-for-Profit and purpose-led organizations striving for high impact.

A series of catastrophic earthquakes in his home city of Christchurch, New Zealand, launched him into several years of disaster response, which, in turn, launched him into international consulting practice. He has worked in more than a dozen countries supporting companies, networks, and communities navigate through unexpected terrain for mutual benefit.

As a strategist and coach, he is pragmatic, direct, and clear, bringing his sharp mind and depth of thought to the fore whilst supporting groups to identify their own priorities and take charge of their future. His deep governance experience, coupled with professional training in positive psychology and related coaching accreditations, makes him highly effective at supporting teams of leaders and governors to find successful paths forward.

His time now is invested in supporting governance boards and senior leaders to succeed, and coaching technical experts and engineers on how to be skilled leaders of people.