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10 Tips to Strengthen Your Nonprofit with Donor Advised Funds

Jul 15, 2025

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This blog is authored by Jennifer Touchet, Vice President of Personal & Family Philanthropy at Greater Houston Community Foundation. With over 25 years of nonprofit experience, Jennifer is a chartered advisor in philanthropy and a national expert on multigenerational giving.

Before I joined Greater Houston Community Foundation nearly 13 years ago, I worked in several different nonprofit organizations, serving as an executive director, development director, grant writer, organizer, and everything in between.  At the time, I didn’t know what a donor advised fund (DAF) was, and the organizations I worked for didn’t have any specific stewardship practices in place for donors who might have supported us through one.

With the knowledge I have today, I realize that I missed some opportunities to identify and steward lifelong high-potential donors. Now, in my role at the Community Foundation, the bulk of my work involves advising, cultivating, and engaging donor advised fundholders, and I know, firsthand, the enormous impact they are having on the nonprofit sector.

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Visible, Valued, & Well Positioned

In today’s rapidly evolving philanthropic landscape, understanding and effectively leveraging donor advised funds is essential for every nonprofit. DAFs are the fastest-growing and most popular charitable vehicle among donors, offering flexibility, tax advantages, and a streamlined way to support causes they care about. At Greater Houston Community Foundation, donor advised funds make up 62% of all funds established—demonstrating their popularity and flexibility compared to other giving vehicles. In 2024 alone, Community Foundation fundholders recommended over $259 million in grants to 1,000 organizations in Houston and across the globe.

For nonprofits, working with donors who have donor advised funds presents a valuable opportunity to expand your reach, deepen relationships, and secure sustainable funding. Recognizing the importance of this partnership is mutually beneficial: as your organization becomes more accessible and engaged with DAF donors, donors gain a trusted pathway to make a meaningful impact through your work.

In this blog, I will share 10 practical strategies to ensure your nonprofit is visible, valued, and well positioned to maximize the potential of DAF support. By deepening your understanding of how DAFs work and refining your approach, you can boost your organization’s visibility and foster stronger, longer-lasting relationships with some of your most committed supporters.

Continue reading: Understanding DAFs: A Comprehensive Guide for Nonprofits

1. Make It Easy for Donors to Find You

Ensure your nonprofit’s tax-exempt ID (EIN) and current address are clearly listed on your website and all marketing materials. This information helps donors accurately identify your organization accurately in platforms such as our DAF portal, Guidestar Charity Check, Candid, Charity Navigator, and other online directories.

What I Learned: When donors log into their Community Foundation DAF portal, they search for your organization’s name, which pulls data in real time from Charity Navigator. Earlier in my career as an executive director, I worked with a nonprofit that had independent affiliates across the country, each with its own EIN. Without easy access to our correct EIN and address, donors could accidentally select the wrong affiliate. A few small updates to your materials can help prevent confusion and ensure support goes exactly where it’s intended.

2. Clear, Actionable Language

Use clear, donor-friendly language like “Make a donation through your DAF” or “Schedule a recurring gift through your DAF” on your website and marketing materials. Simple prompts like these remind donors of the tools available to them and help them maximize the impact of their giving.

Many donors prefer to “set it and forget it” with recurring gifts—but they don’t love credit card fees. Those fees can add up quickly for both the nonprofit and the donor. The good news? Through a donor advised fund at the Community Foundation, donors can schedule recurring gifts—monthly, quarterly, annually, or a customized schedule—without incurring extra fees.

Just a reminder: DAFs cannot be used to cover gifts that include goods or services (like galas or event tickets), due to IRS regulations. But for unrestricted support, recurring gifts through a DAF are a simple, cost-effective way to deepen donor engagement.

3. Accuracy Matters

Ensure your donors know your nonprofit’s official, legal name—especially if it differs from your branding or how your organization is commonly referred to. This clarity ensures they can easily search and identify the correct organization when making a grant through their DAF.

If your organization is fiscally sponsored, be sure to clearly communicate the name of your fiscal sponsor and the proper procedure for designating gifts. DAF portals typically require the legal name and tax ID of the sponsoring organization, not the sponsored project. If this isn’t made clear, a donor may have trouble locating your organization or may inadvertently direct their support elsewhere. Include this information on your website, donation materials, and anywhere you’re promoting DAF giving.

The easier it is for donors to give, the more likely they are to follow through.

4. Make Receiving DAF Grants Easier

Ensure faster, more secure grant payments from Greater Houston Community Foundation by signing up to receive your DAF grants via electronic funds transfer (EFT).

Did you know? A recent study found that 78% of pre-retirees and retirees prioritize charitable giving. Donor advised fund (DAF) donors are among your highest-capacity supporters—individuals who have intentionally set aside funds for philanthropy. They’re often deeply committed to long-term giving and seek meaningful engagement with the organizations they support.

Make it easy for them—and your organization—by streamlining how you receive their gifts.

5. Steward Your DAF Donors With Intention

DAF donors are some of your most engaged and high-capacity supporters. Go beyond a standard thank-you—develop a thoughtful, tailored stewardship strategy just for them.

Start by tracking who is giving to your organization through a DAF and use that list to build deeper relationships. Ask these donors about their values, motivations, and long-term goals. Invite them to get involved beyond financial support—through volunteering, advisory roles, or thought partnership—and offer to connect them with others who share their philanthropic interests.

Try This Tool: Frost Murphy, a Community Foundation DAF fundholder, utilizes a framework we co-developed with 21/64 called Time, Talent, Treasure, and Ties to guide how he engages with organizations he supports. This tool helps identify meaningful ways to get involved—and it’s available to nonprofits like yours to use with your donors, board members, or volunteers.

When you treat DAF donors as long-term partners rather than one-time givers, you unlock powerful potential for sustained support and deeper impact.

6. Design Exclusive Engagement Opportunities

DAF donors have already demonstrated a strong commitment to giving, and they often have both the capacity and the desire to do more. Recognize their potential by creating a special offering or learning opportunity tailored just for them.

Here’s an Idea: Consider hosting an exclusive donor briefing, behind-the-scenes tour, or impact-focused event that gives them deeper insight into your mission, programs, and long-term vision. This kind of intentional programming not only strengthens their connection to your work—it signals that you see them as true partners in your mission.

7. Noncash Asset Gift? Partner With Us

When donors want to give more creatively—through real estate, closely held stock, or other noncash assets—the Community Foundation is here to help you turn those complex gifts into impactful support for your mission. Our team will work with you to ensure compliance with IRS regulations and structure the gift in a manner that maximizes tax benefits for the donor while preserving their intent.

8. Empower Donors to Leave a Lasting Legacy

Legacy planning is a powerful way for donors to extend their impact well beyond their lifetime, and you can play a key role in helping them make that vision a reality. Encourage your donors to incorporate their DAF into their long-term estate and legacy plans.

Greater Houston Community Foundation’s experienced team is here to support you and your donors in exploring meaningful, tax-efficient options—whether through bequests, charitable trusts, or creating an endowed DAF or designated fund that supports your organization in perpetuity.

Many DAF donors intend to support multiple organizations through their estate gifts, including yours. We can help them structure those plans thoughtfully, ensuring their legacy reflects their values while streamlining the process for everyone involved.

9. DAF Succession Plans

One meaningful and often overlooked way donors can support your mission long-term is by naming your organization as a beneficiary of their donor advised fund. As part of their succession plan, donors have the option to designate one or more nonprofits to receive all or a portion of their fund balance after their lifetime.

Including your organization as a successor beneficiary is a simple yet powerful step that ensures their legacy of giving continues well into the future. Be sure to share this option with your supporters and include it in conversations about planned giving and estate planning. It’s a low-barrier way for donors to make a lasting impact—no legal fees, no complicated paperwork—just a heartfelt commitment to the causes they care about most.

10. Support the Rising Generation of Philanthropists

Today’s emerging donors are stepping into philanthropy earlier than ever—many opening DAFs between the ages of 50–55, and increasingly even younger. At Greater Houston Community Foundation, we offer a robust suite of services designed specifically for Next Gen donors (ages 25–55), helping them give with intention, strategy, and impact.

Refer emerging donors to the Community Foundation to explore how a DAF can be a flexible, strategic tool for impactful giving. Through our Next Gen Donor Institute, they’ll gain access to tools, peer networks, and guidance on becoming thoughtful philanthropists and effective board members.

Real Impact: One of our Next Gen Institute alums used her DAF to make a meaningful gift to her alma mater—supporting students who had experienced foster care before college. Because the university’s development team was familiar with DAFs, the gift was processed smoothly, allowing her vision to come to life with ease.

Putting It All Together

Donor advised funds offer incredible opportunities for nonprofits to deepen relationships, grow support, and increase their impact. By understanding how DAFs work—and taking intentional steps to engage and steward these donors—you can unlock new resources and build lasting partnerships.

With the strategies outlined in this guide, your nonprofit will be well-positioned to welcome DAF donors as committed partners in your mission, today and for years to come. 

Do you have a DAF donor that needs assistance or a noncash gift you’re unsure about? Reach out today and we’ll gladly assist you in determining the best course of action. 

More Helpful Articles by Greater Houston Community Foundation: 

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