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Nonprofit Adviser

A weekly newsletter for Chronicle subscribers that features expert advice, tools, case studies, and trends to help nonprofit professionals raise money, communicate, and lead. Delivered every Monday. (Subscribers only.)

October 14, 2024
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From: Emily Haynes

Subject: How to Handle Anonymous DAF Gifts

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In recent years, more and more donors have decided to use donor-advised funds to make philanthropic gifts. These donations are meaningful for nonprofits, but they can be challenging for fundraisers to process — especially when they are made anonymously.

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1298166694
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In recent years, more and more donors have decided to use donor-advised funds to make philanthropic gifts. These donations are meaningful for nonprofits, but they can be challenging for fundraisers to process — especially when they are made anonymously.

In his recent report on popular ways donors give anonymously, my colleague Drew Lindsay talked to experts about how fundraisers should handle an influx of anonymous DAF gifts. A common theme: Just because a donor’s name isn’t on the fund, doesn’t mean the gift was intended as anonymous.

“Sometimes donors are confused about what anonymous means,” says Dan Heist, a professor at Brigham Young University and co-director of the DAF Research Collaborative. “They think that when they click ‘anonymous,’ the charity will still get their name and address, but the charity just won’t publicize it.”

It helps to ask the DAF sponsor whether the donation was intentionally anonymous. That’s an occasional practice at the Boys & Girls Clubs of Greater St. Louis — and typically leads to direct contact from the donor.

Gumshoe investigations can help, too. Jesse Winters, vice president of resource development at the Boys & Girls Clubs of Greater St. Louis, says his team will poke around online to see if they can identify the donor behind the fund name on a DAF gift. Often, he says, they can.

After they make that connection, Drew writes, the organization assures donors it finds that their name won’t be made public. The message, according to Winters: You invested in us, and you’re trusting us with your money. So, we want to make sure that you know what’s happening with that money.

Read “Getting Anonymous DAF Donations? 7 Things To Do” for more insights and advice.

Have a great week,
Emily Haynes
Senior Editor, Nonprofit Intelligence

WEBINARS

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    Today: November 7 at 2 p.m. ET | Register Now

    Foundation giving last year totaled a whopping $100 billion, but tapping into this generosity can be challenging. Join us for How to Wow Grant Makers With Your Next Proposal to learn from Pamela Ayers at Empreinte Consulting, and Diane Gedeon-Martin of The Write Source, LLC, who will share tips on how to use a logic model, simple ways to enhance your case for support, and how to use A.I. to research grant makers.

ONLINE FORUMS

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    Today, October 29 at 2 p.m. ET | Register Now

    Join Strengthening Cybersecurity in the Age of A.I., a conversation with Francesca Bosco of the CyberPeace Institute, Michael Enos of TechSoup, Raffi Krikorian of Emerson Collective, and Joshua Peskay of RoundTable Technology. They’ll share updates on how cyberthreats are changing and share practical advice on how nonprofits can protect themselves.

New Advice

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    Why Your DAF Donor May Not Be Anonymous After All

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    Charities aren’t getting the information donors want them to have thanks to less-than-clear digital interfaces, mistakes, and confusion in the development office.
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    Getting Anonymous DAF Donations? 7 Things to Do

    By Drew Lindsay
    Fundraisers and experts share their secrets for relationships with mystery donors.
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    Gifts From DAFs Are Nearly 10% of All Giving. How Nonprofits Are Trying to Court Those Donors

    By Rasheeda Childress
    DAFs remain controversial, but their size and influence continue to grow. Gifts from the accounts totaled $52 billion in 2022.
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    Leading

    Making Big Changes? Survey Finds Leadership and Staffing Are Keys to Success

    By Jim Rendon
    More than 70 percent of nonprofit employees said limited staffing and budget constraints are impediments to change.
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    Demonstrating Impact

    Show How Your Nonprofit Is Making a Difference: 10 Dos and Don’ts

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    Tips from experts that can help you measure results, share them in meaningful and inspiring ways, and avoid common pitfalls.
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    How to Encourage Spontaneous Donors to Give Again

    By Rasheeda Childress
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    Grant makers too often skip funding this critical step when supporting local leaders like me.
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Tip of the Week

To get the best return on your grant-seeking efforts, get to know program officers. Start by researching the potential grant maker, including the kinds of groups it gives to and why, the size or range of grants it typically makes, and how its focus areas intersect with your work, says Muneer Panjwani, a development consultant and former fundraising executive. You could also see if any of its grantees are organizations with which you collaborate or want to do so. These insights should help you figure out how best to approach the foundation and articulate the value your nonprofit could add to its portfolio, he says. For more tips on building relationships with grant makers, read 14 Ways to Improve Your Next Proposal and Build Ties With Grant Makers.

New Grant Opportunities

Your Chronicle subscription includes free access to GrantStation’s database of grant opportunities.

Racial Justice: The Catalyst Grant Program is a collaboration between the Urban Institute and the Microsoft Justice Reform Initiative to support the efforts of nonprofit organizations in the United States to use data and technology to advance racial equity and reform in the adult criminal legal system. Support is provided for local projects that advance the focus areas of the Microsoft Justice Reform Initiative, which include supporting policies, programs, and practices that prevent unnecessary system involvement and decrease racial and ethnic disparities at the front end of the criminal legal system. Application deadline November 22; grants are $40,000.

Service Members and Veterans: The Bob Woodruff Foundation supports programs in the United States that help service members, veterans, and their families and caregivers thrive. The focus is on programs that improve the health and well-being of service members, veterans, and their families and caregivers; improve social determinants of health; decrease barriers to accessing physical and mental healthcare; increase accessibility to programming that fosters a healthy lifestyle; and enhance opportunities for veterans to thrive after service. Applicants that wish to be considered for the Foundation’s first review of the calendar year should apply by January 8.

Emily Haynes
Emily Haynes is senior editor of nonprofit intelligence at the Chronicle of Philanthropy, where she produces online forums on philanthropy topics and writes and edits reports on nonprofit trends
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