Unlocking the Power of Donor-Advised Funds 🔓

Nonprofits Are Tapping into New Funding Sources to Drive Growth and Impact

October 13, 2024

Welcome back to Nonprofit Digest, your source of nonprofit inspiration and resources!

This week, we’re diving into one of the fastest-growing trends in charitable giving: Donor-Advised Funds (DAFs). Whether you’re new to the world of DAFs or already familiar with this giving vehicle, we’ve packed this issue with essential insights, handpicked grants, and tools to help your nonprofit make the most of this innovative funding source. Let’s get started!👇

Donor-Advised Funds: Unlocking New Philanthropic Opportunities 🔓 

Donor-Advised Funds (DAFs) are reshaping how individuals contribute to nonprofit causes. A DAF is a giving account that allows donors to make charitable contributions, receive immediate tax benefits, and recommend grants to their favorite nonprofits over time. For many small to medium nonprofits, tapping into DAFs can be a game-changer for long-term sustainability.

📊 Did You Know?

- In 2022, over $52 billion was distributed through DAFs to nonprofits across the U.S.

- DAF donors give, on average, 19 times more than traditional donors.

- DAFs have an annual growth rate of 20%, making them one of the most promising funding sources for nonprofits.

To access DAFs, nonprofits can start by connecting with local community foundations and financial institutions like Fidelity Charitable, Schwab Charitable, and Vanguard Charitable, which manage large DAF programs. Building relationships with donors who have DAFs is key, so nonprofits should mention DAFs as a giving option on their websites and in donor communications. Unlike traditional grant applications, securing DAF donations often involves engaging directly with donors, building relationships, and presenting a compelling case for support through personalized outreach.

Handpicked Grants to Fuel Your Mission 💸 
Three great funding opportunities for new and small nonprofits this October:

GEICO Philanthropic Foundation Grants
Focus: GEICO supports nonprofits focused on education, community engagement, diversity, equity, and inclusion. This grant is ideal for small to medium-sized nonprofits that align with these focus areas.

Amount: Grants vary based on the scope and impact of the nonprofit's mission

Deadline: Open until November 30, 2024

Pro Tip: Ensure your application clearly demonstrates how your programs promote education and community development​

Apply Here: GEICO Philanthropic Foundation

Kars4Kids Small Grant Program
Focus: Kars4Kids provides grants ranging from $500 to $2,000 to initiatives and programs that support education, mentorship, and youth development across the United States.

Amount: $500 to $2,000

Deadline: Rolling

Pro Tip: Emphasize how your project supports youth growth and development through education and mentorship

Apply Here: Kars4Kids Grants

Pollination Project Seed Grants
Focus: The Pollination Project offers seed grants of up to $1,000 to individuals and small groups working on early-stage projects aimed at social change.

Amount: $1,000

Deadline: Rolling

Pro Tip: Highlight how your project addresses grassroots, community-driven solutions to social justice or environmental issues

Apply Here: Pollination Project Seed Grants

News You Can’t Miss 📰

The First Donor-Advised Fund (DAF) Day

On October 10, 2024, the nonprofit sector celebrated the inaugural DAF Day, encouraging DAF donors to contribute to their favorite causes. Organized by Chariot, this event highlighted the importance of DAFs, which collectively hold over $230 billion in charitable assets, as a crucial tool for supporting nonprofits. The success of DAF Day demonstrates the untapped potential of DAFs in boosting charitable contribution.

Giving to Women and Girls' Nonprofits Surpasses $10 Billion

For the first time, giving to women’s and girls’ organizations topped $10.2 billion in 2021, according to the 2024 Women & Girls Index by the Women’s Philanthropy Institute. Despite this milestone, donations to women and girls still represent just 1.9% of total philanthropic giving. The report calls for increased and sustained support for these causes to ensure continued progress​.

A New Era in Government Grantmaking Begins

As of October 1, 2024, the OMB Uniform Guidance overhaul went into effect, streamlining federal grantmaking and making it more accessible for nonprofits. Key changes include a rise in the minimum indirect cost rate from 10% to 15%, simplified grant announcements, and a new appeals process for nonprofits to address disputes with federal agencies over indirect costs. This is expected to greatly benefit nonprofits, especially those serving underserved communities.

Tools to Streamline Fundraising and Operations 🚀

We’ve rounded up the best tools to help you manage operations and boost your nonprofit’s impact:

Airtable for Nonprofits

What is it?: Airtable is a versatile collaboration tool that combines the ease of a spreadsheet with the power of a database. Nonprofits can use it for managing donor relationships, tracking program impact, coordinating volunteers, and much more. Plus, Airtable offers a 50% discount on their Team licenses for qualifying nonprofits, making it even more accessible.

Why You Should Care: Airtable helps small nonprofits stay organized, efficient, and ready to scale by offering highly customizable templates to meet your unique operational needs.

Pro Tip: Use Airtable’s free templates to track donations, manage projects, or even coordinate events. The platform grows with your nonprofit's needs!

Sign Up Here: Airtable Nonprofit Discount Application

Zapier

What is it?: Zapier is an automation tool that connects your favorite apps (e.g., Gmail, Google Sheets, Slack) to automate workflows without needing coding skills. Nonprofits can use Zapier to automatically send information from donation forms to spreadsheets, sync volunteer sign-ups with calendars, or trigger email campaigns based on donor activity.

Why You Should Care: Small nonprofits often struggle with limited time and resources, and Zapier helps streamline repetitive tasks, freeing up more time for mission-critical activities.

Pro Tip: Set up Zaps (automation workflows) to notify team members when a new donation or volunteer sign-up occurs, making donor and volunteer management effortless.

Explore Zapier

That’s all for this edition of Nonprofit Digest. Be sure to follow up with your donors and highlight how Donor-Advised Funds can play a role in supporting your organization. Join our Nonprofit Community Resources Facebook Group to connect with fellow nonprofit leaders and share your experiences with DAFs.

Join the Group Here

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