Unpacking Donor-Advised Funds: Maximizing Opportunities for Charities

Presented by:

Matt Mandrusiak – Manager, Philanthropy at Edmonton Community Foundation

Cary Williams CFP, CIM - Director of Research, Portfolio Manager at North Road Investment Counsel

This presentation delves into the growing popularity of donor-advised funds (DAFs) as a strategic tool for philanthropy. We'll begin by explaining what DAFs are—charitable giving accounts offered by sponsoring organizations that allow donors to contribute, grow, and recommend grants to charities over time. The appeal of DAFs is multi-faceted: donors enjoy tax benefits, flexibility in grant timing, and the ability to manage their philanthropic contributions more effectively. As a result, DAFs have seen rapid growth in recent years, with more donors turning to this vehicle for charitable giving.

For charities, understanding and engaging with DAFs is essential. DAFs represent a significant and often untapped funding source, yet their intermediary structure can create a layer of complexity in the donor-charity relationship. This presentation will highlight strategies for nonprofits to proactively engage with DAF holders, build relationships with granting organizations, and tailor their messaging to align with the unique advantages DAFs offer donors.

By welcoming and understanding the dynamics of DAF granting, charities can enhance their fundraising efforts, improve donor retention, and ultimately grow their impact.