Question 1

Why should donor-advised funds be a priority for organizations?

Accepted Answer

DAF dollars represent a major opportunity for nonprofits for a few reasons. They’ve skyrocketed in popularity among donors and now hold a considerable amount of wealth that has been specifically set aside for philanthropic purposes. DAFs currently hold over $234 billion, a nearly 40% increase over the past year. Donors who give through DAFs are also very loyal, with 77% of grants in 2022 going to nonprofits that the donor had previously supported.

Question 2

Is it difficult to accept DAF gifts?

Accepted Answer

Not at all! Accepting DAF gifts is typically much easier than accepting other forms of non-cash gifts since any non-cash assets are liquidated upon being contributed to the DAF. This eliminates the need to work through brokerages and reduces the chance of receiving a gift anonymously.

Question 3

How does donor-advised fund software help?

Accepted Answer

DAF software closes the loop by ensuring you properly collect and track the donor and gift information you need to run an effective giving program. Seamless data collection plus intuitive reporting features from FreeWill mean you can thank, steward, and engage your DAF donors for the long term. Learn more about FreeWill’s comprehensive smart giving solutions.

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