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Unlocking the Power of Donor Advised Funds(DAF)

Posted: October 1, 2024

A partnership between Better Giving and Chariot DAFpay

As a nonprofit, securing resources is vital to advancing your mission. Donor Advised Funds (DAFs) present a significant, yet often underutilized, source of funding. As a donor with a DAF, you know how impactful they can be, and we discuss below how your DAF can be of even MORE impact, right now! 

Better Giving provides the tools to make DAF donations seamless, courtesy of a groundbreaking feature called DAFpay, powered by our new partnership with Chariot – the leading Donor Advised Fund payments solutions provider. Uniquely, nonprofits can now benefit from DAF contributions directly to both a high-yield savings account and managed investment funds.

So when donors give today (or even on Dafday! This October 10th) , they can give forever, seeing their hard earned contributions put to use both immediately OR over a longer period of time. 

What is a DAF?

A Donor Advised Fund (DAF) is a specialized financial account dedicated to charitable giving. Donors can contribute to a DAF, receive an immediate tax deduction, and then recommend grants to 501(c)(3) organizations over time. The funds within a DAF can grow tax-free, providing a continuous stream of potential donations.

Why Do DAFs Matter for Your Nonprofit?

  • DAFs are not just for the ultra-wealthy—they are rapidly becoming a crucial component of modern philanthropy:
  • Growing Influence: DAFs accounted for 17% of all charitable giving in the U.S. in 2022, up from 7% in 2017. This trend signifies that DAFs are increasingly essential to a successful fundraising strategy.
  • Larger Donations: The average DAF donation is nearly $5,000, far exceeding typical individual gifts. By engaging DAF donors, your organization can secure more substantial contributions.
  • Stability in Uncertain Times: Because DAF funds are already allocated for charity, they provide a stable source of donations even during economic downturns.

Better Giving: Your Key to DAF Donations

Better Giving, in collaboration with Chariot and their DAFpay service, streamlines the process of accepting DAF donations, making it easier for your organization to access these funds. 

But there are some aspects of this that sets Better Giving apart from other payment processors: Not least the fact that Better giving is free of charge! No subscriptions, no ongoing platform fees. Plus the crucial  ability for DAF donations to be directed straight into a high yield Sustainability Fund, benefiting your organization in the long term. 

What else do we offer? 

  • Embedded Donation Forms: Better Giving offers embedded donation forms that allow donors to contribute through their DAFs directly on your site, reducing friction and increasing the likelihood of larger gifts. You’ve spent a lot of time and money getting donors to visit your website. Why send them away when they need to donate! 
  • Sustainability Fund Contributions: Unlike other processors, Better Giving enables DAF donations to be allocated to a Sustainability Fund. This fund is designed to grow over time, providing ongoing support for your nonprofit. It’s an innovative way to ensure that donations continue to benefit your cause, even beyond the initial gift.
  • Enhanced Donor Experience: Better Giving & Chariot simplify the DAF donation process, reducing it from what can sometimes be 15 steps to just a few clicks, significantly improving the donor experience and boosting conversion rates. You receive donor details and funds in your account, we handle the admin work & tax receipts

Take Action:

  • Register your nonprofit with Better Giving now! No subscriptions, no fees. 
  • Populate your Better Giving marketplace page and personalise your Better Giving embedded donation forms. 
  • Promote Your DAF Capabilities: Highlight your ability to accept DAF donations, including contributions to the Sustainability Fund, on your website and in communications to your network. Visibility is crucial to attracting these gifts.
  • Engage Your Donors: Don’t hesitate to ask your donors if they have DAFs. Understanding their giving preferences can lead to more significant contributions.

For Donors: Maximizing the Impact of Your DAF

As a donor, you want your charitable contributions to make a lasting difference. You are very well aware that Donor Advised Funds (DAFs) offer a strategic approach to giving, and Better Giving enhances this by providing the unique opportunity to contribute to a Sustainability Fund that benefits your chosen nonprofit over time.

Maximizing Your DAF with Better Giving

  • More Strategic Gifts: When you give, your contributions can also support a Sustainability Fund, ensuring that your donation continues to benefit your chosen nonprofit long after the initial gift. This unique approach allows you to maximize both the immediate and long-term impact of your giving.
  • Seamless Digital Experience: Better Giving offers an easy-to-use platform, where every donation is initiated digitally. This streamlined process ensures that your donations are as efficient as they are impactful.
  • Visibility and Acknowledgment: Donations through Better Giving are accompanied by complete donor details, ensuring that your contributions are properly recognized and appreciated by the nonprofits you support.

Take Action:

  • Explore DAF and Sustainability Fund Options: If you haven’t already set up a DAF, consider establishing one through platforms like Fidelity, Vanguard, Schwab, or newer services like Daffy and Charityvest. When donating, look for opportunities to contribute to Sustainability Funds through Better Giving. Your gift keeps giving, year after year.
  • Stay Informed and Proactive: Choose nonprofits from around the world that accept DAF donations through Better Giving, ensuring your contributions are easy to make & impactful in both the short and long term..
  • Maximize Your Impact: By directing your DAF donations into a Sustainability Fund via Better Giving, you ensure that your contributions grow over time while immediately benefiting the organizations you care about.

Partnering for Sustainable Impact

So, whether you’re a nonprofit seeking to unlock new funding streams or a donor looking to maximize the impact of your giving, Better Giving and Chariot provide the tools and solutions to make the most of Donor Advised Funds. 

With the unique option of contributing to a Sustainability Fund, both nonprofits and donors can ensure that their efforts create lasting change. 

It’s easy for nonprofits to register with Better Giving and benefit from DAF donations – start today and contributions can start coming in right away!

For DAF owners, choose a nonprofit to donate to from around the world or ANY US based 501 (c) (3) – all can benefit right now from your contribution and the sustainability fund donations see your donation keep giving year after year.