5 Tips for Soliciting Gifts from Donor Advised Funds
Donor advised funds hold billions of dollars earmarked for charitable giving, yet many nonprofits struggle to unlock this growing pool of philanthropic capital.
Unlike a direct check from a donor's personal account, a gift from a donor advised fund flows through a sponsoring organization. This changes how nonprofits identify prospects, craft appeals, and process gifts. Understanding these differences allows development staff to solicit donor advised fund gifts with the same confidence they bring to any other funding source.
Identify which donors hold a donor advised fund. Many organizations already count donor advised fund holders among current supporters without realizing it. Start by reviewing gift records for checks or electronic transfers arriving from sponsoring organizations such as Fidelity Charitable, Schwab Charitable, Vanguard Charitable, or a local community foundation rather than from an individual donor directly. These transactions signal a donor advised fund gift even when the individual's name does not appear on the payment. Cross-reference this list against known major donors and long-time supporters, since research shows individuals who open donor advised funds tend to give more overall and give across more organizations than donors relying solely on direct checks.
Recognize the sponsoring organization, then cultivate the advisor. A donor advised fund gift technically comes from the sponsoring organization, not the individual who recommended it. Nonprofits must send tax acknowledgment letters to the sponsoring organization, since that entity, not the individual, holds the legal charitable deduction. At the same time, cultivation and stewardship belong entirely to the individual donor who recommended the gift. Send a separate, personal thank you letter to the donor advisor acknowledging their generosity and impact, distinct from the formal acknowledgment sent to the sponsoring institution. Then treat this donor exactly as any other major gift prospect: invite them to tour your facility, meet program participants, and receive impact updates throughout the year. Remember, they have set aside funds to give to charity; they just need to decide which one. Make sure they continue to direct some of their giving to your organization.
Craft solicitation language that invites a gift from a donor advised fund. When drafting appeals, include specific language inviting donors to recommend a grant from their donor advised fund. Don’t assume donors will translate a general appeal into a donor advised fund gift on their own. Phrases such as "consider recommending a grant from your donor advised fund" or "many of our supporters choose to give through their donor advised fund" normalize this giving method and prompt donors who might otherwise forget this option. Include your organization's legal name, tax identification number, and mailing address directly in solicitation materials or prominently on your website, since donors initiating a grant recommendation through their sponsoring organization's online portal need this information readily available.
Build a follow-up process for donor advised fund gifts. Because donor advised fund gifts arrive without accompanying pledge forms or direct donor contact, organizations need a deliberate process to track and follow up on these gifts. Assign a specific staff member to monitor incoming gifts for sponsoring organization names, flag these transactions in the donor database, and trigger a stewardship sequence distinct from a typical direct gift. Some sponsoring organizations will also help you track down the donor so cultivate a relationship with them too. Document each donor's giving pattern over 2 or 3 years to identify opportunities for increased asks, recognizing that donor advised fund holders often give larger gifts than their direct-giving counterparts.
Ask directly and ask often. Nonprofits sometimes hesitate to solicit donor advised fund gifts directly, assuming donors will initiate these grants without prompting. This assumption costs organizations significant revenue. Donor advised fund holders expect and welcome direct solicitations just as any other donor does. Include donor advised fund holders in major donor solicitations, capital campaign solicitations, and year-end giving pushes with the same intentionality that you apply to every other prospect segment.
Donor advised funds represent one of the fastest growing vehicles for charitable giving. Organizations that build intentional identification, acknowledgment, and cultivation processes around these gifts position themselves to capture a larger share of this expanding philanthropic resource.
