Introduction to Donor-Advised Funds (DAFs)
Donor-Advised Funds (DAF) are becoming an increasingly popular method for supporters to donate to their favorite nonprofits. But what are DAFs, and why should nonprofits encourage their donors to use them? Moreover, how can nonprofits make it easy for donors to donate through their DAF directly on the nonprofit’s website? Read on and learn how your nonprofit can streamline the donation process for your wealthiest donors and significantly increase the number and amount of DAF donations you receive!
Chariot’s simple to install DAF Software makes it a breeze for your wealthiest donors to contribute to your cause through their Donor Advised Fund in just a few clicks, and without having to leave your nonprofit’s donation page.
Understanding Donor Advised Funds
A DAF is a philanthropic vehicle established at a respected firm such as Vanguard, Fidelity or Schwab. It allows donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund over time. For donors, it’s a simple, flexible, and tax-efficient way to give to their favorite nonprofits. For nonprofits, it represents a significant opportunity to increase large donations, as over $200 billion resides inside of Donor Advised Funds!
The Benefits of Donor Advised Funds for Nonprofits
Nonprofits should encourage their donors to donate through their DAFs for a few reasons. First, donors who contribute through Donor Advised Funds often make larger donations than they would otherwise. Second, because DAFs allow donors to receive an immediate tax benefit, the donor may be more likely to donate simply because their DAF is already created. Third, DAFs provide an opportunity for donors to engage in strategic philanthropy, making use of stocks, bonds, mutual funds and index funds, allowing them to make a more significant impact on the causes they care about. And finally, high net worth individuals are those most likely to use Donor Advised Funds…so there are literally billions of dollars already in DAF’s waiting to be donated.
Why Most Nonprofits Don’t Receive Many DAF Donations
However, making a donation through a DAF can be a cumbersome process, often requiring the donor to leave the nonprofit’s website and log into their DAF account separately. This extra step can discourage donations and lead to missed opportunities for nonprofits. A donor may be inspired to donate while perusing your website, and if they arrive at your donation page and there is no mention of DAF’s, they may donate a small amount through their credit card without even considering donating through their DAF.
Introducing Chariot: The Easiest Way For Your Highest-Value Donors To Support Your Mission
Chariot is a revolutionary payment option that enables your donors to donate with their Donor Advised Fund in just three clicks! Chariot’s DAF widget software allows donors to make a donation directly through their DAF without leaving the nonprofit’s donation page. By streamlining the donation process, Chariot’s DAF widget can increase the amount and frequency of DAF donations, leading to more funding for the nonprofit’s mission.
Below you can see the first two windows of the Chariot DAF donation widget, as seen on the SAVE THE FROGS! donation page (which was built by Nonprofit ICU Founder Dr. Kerry Kriger).
Sign Up For Chariot With A $100 Discount
Why wait? Sign up for Chariot by clicking the button below. You will receive a $100 discount on your annual subscription…and SAVE THE FROGS! will receive a $100 discount as well!
SAVE THE FROGS! is the amphibian conservation charity founded and directed by Nonprofit ICU Founder Dr. Kerry Kriger. SAVE THE FROGS! is a proud user of Charity, and saw their first DAF donation come in through the Chariot widget within one week of adding it to their site.
In conclusion, DAFs offer a significant opportunity for nonprofits to increase large donations. By making it easy for donors to contribute through their DAFs directly on the nonprofit’s website using Chariot’s DAF widget software, nonprofits can streamline the donation process and increase their funding. Best of luck with your fundraising!
Feel free to schedule a 30-minute strategy session with us at no cost, during which we can find plenty of ways for your nonprofit to increase its donations…enabling your nonprofit to accomplish that much more for your supporters and beneficiaries.