[NPFX Ep. 24] Donor-Advised Funds: Making DAFs Work for Your Nonprofit

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Welcome to The Nonprofit Fundraising Exchange, a podcast from IPM Advancement. Our mission is to help you raise more money so you can make the world a better place.

Today’s topic: Donor-Advised Funds — Making DAFs Work for Your Nonprofit

As donor-advised funds increase in popularity, so too grows the controversy surrounding them. Critics cry shadow philanthropy while proponents claim DAFs encourage greater giving, leaving many in the nonprofit sector with the question: Are donor-advised funds good for nonprofits? In today’s podcast episode, we’ll discuss the pros and cons of DAFs, what effect they have on traditional fundraising strategies, and how your nonprofit can succeed with donor-advised funds.

Time-Stamped Episode Shortcuts:

  • Introductions [0:57]
  • A brief history of donor-advised funds [1:39]
  • The advantages of DAFs for donors [2:40]
  • Why for-profit investment companies have embraced donor-advised funds [7:45]
  • How DAFs are changing the way nonprofits work with their donors [10:31]
  • The challenge of tracking DAF grants to the donors who made them [13:53]
  • Are fund managers required to tell nonprofits who made the gift? [16:04]
  • Should there be distribution requirements for donor-advised funds? [18:43]
  • Using DAFs to talk to donors about planned giving [23:45]
  • Should nonprofits market donor-advised funds as a way to give? [25:29]
  • Criticisms of DAFs and the controversy over "shadow philanthropy" [28:07]
  • Tips for how to make DAFs work for your nonprofit [32:59]

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Rich Frazier has worked in the nonprofit sector for over 30 years. In his role as senior consultant with IPM Advancement, Rich offers extensive understanding and knowledge in major gifts program management, fund development, strategic planning, and board of directors development.

Alan Knobloch has held positions in the nonprofit sector at The Nature Conservancy Arizona, St. Joseph’s Hospital and Barrow Neurological Institute, Phoenix Children’s Hospital Foundation, and Valley of the Sun United Way. In addition to being a Certified Fund Raising Executive from the Association of Fund Raising Professionals, he has earned a diploma from the National Planned Giving Institute from the College of William and Mary.

Colton C. Strawser, PhD has built his consulting career working with foundations, education nonprofits, and social service agencies. He has served as a university faculty member where he has taught courses on nonprofit management, fundraising, community development, and program evaluation. In addition to being a Certified Fund Raising Executive, AFP Master Trainer®, Certified Nonprofit Professional, and Certified Facilitator of the Core Capacity Assessment Tool with TCC Group, Dr. Strawser completed his PhD in Nonprofit and Philanthropic Leadership at The Nonprofit Institute at the University of San Diego.


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