Unlocking the mystery: Three ways to build relationships with donor-advised fund holders
You've no doubt seen the report that in 2025, Americans contributed an estimated $617 billion to support nonprofits. Philanthropy is going strong, and it's also likely not a surprise that donor-advised funds continue to play a growing role in charitable giving. Across the country, more donors are using donor-advised funds to organize their philanthropy, make grants to favorite nonprofit organizations, and involve family members in giving decisions. The community foundation offers donor-advised funds to families, individuals, and businesses to help maximize the dollars that ultimately flow to support a wide range of charities, including local organizations like yours that are making a difference every single day.
Yet despite the growth of these vehicles, many nonprofit organizations still find them somewhat mysterious. One of the most common frustrations nonprofit leaders express is that, because grants arrive from the community foundation rather than directly from the donor, nonprofit leaders may feel disconnected from the people whose generosity is supporting their mission.
The good news is that donor-advised fundholders are often exactly the type of supporters that you and other nonprofits want to cultivate. Research and industry reports consistently show that donor-advised fund donors tend to be thoughtful philanthropists who are actively engaged in charitable planning and frequently work with attorneys, CPAs, and financial advisors to maximize their impact.
The team at the community foundation is always happy to have a conversation about why donor-advised funds are actually not a barrier to your donor relationships, but rather an important tool that fits into a donor's broader charitable giving strategy. We look forward to a conversation. In the meantime, here are three ways you can strengthen your relationships with donor-advised fundholders.
1. Recognize that a donor-advised fund is a giving tool—not a donor
A donor-advised fund is simply a vehicle for charitable giving. Behind every donor-advised fund grant are real people who have intentionally recommended support for your organization. When a grant arrives from a donor-advised fund at the community foundation, try to avoid treating it as a transaction from a financial institution. Instead, look for opportunities to identify and thank the individual donor whenever possible. Even when the grant itself comes from the community foundation, the charitable decision originated with a person who believes in your mission.
2. Make it easy for donor-advised fund donors to support your organization
Many nonprofits now include information on their websites and donation materials about how donors can give from their donor-advised funds. Simple reminders that your organization accepts grants from donor-advised funds can help donors understand that this option is available. You may also want to ensure that your organization's legal name, tax identification number, and contact information are easy for the team at the community foundation to locate. Our team needs this information to receive and process grant requests from donor-advised fundholders.
3. Steward donor-advised fund donors the same way you steward other donors
Some organizations unintentionally place less emphasis on donor-advised fund gifts because the donation arrives through an intermediary. This can be a missed opportunity. Donor-advised fund donors should receive meaningful stewardship, impact reporting, invitations to engage, and ongoing communication whenever possible. The fact that a donor uses a donor-advised fund does not make the relationship less personal. In many cases, these donors are among an organization's most committed supporters.
In addition, it's important to know that the community foundation gives donors access to resources, information, and education about local organizations and how to make maximum impact. We encourage donors' active involvement with the community and the nonprofits they support. We take seriously our role as a convener and champion for local quality of life.
The bottom line
As charitable giving tools become increasingly sophisticated, nonprofits in our community can benefit from understanding the tools donors use to support the causes they care about. Donor-advised funds are no longer a niche giving vehicle. They have become an important part of modern philanthropy and are likely to remain so for years to come. The community foundation is always happy to help your organization stay informed about charitable giving trends and identify opportunities to strengthen donor engagement.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.