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Making the Most of Donor-Advised Fund Giving

Even in tough economic times, charitable giving is growing – Americans contributed an estimated $617 billion to nonprofits in 2025 alone. And along with that generosity, donor-advised funds have grown and become a popular way to organize philanthropy for individuals, families, and businesses. These charitable giving accounts help donors support the organizations they care about while providing flexibility in how and when grants are distributed.

At the community foundation, donor-advised funds help connect generous individuals with nonprofits that are making a meaningful difference throughout our community. Yet despite their growing popularity, donor-advised funds can still feel unfamiliar to many nonprofit organizations.

One of the most common questions we hear is about donor relationships, since grants often come from the community foundation instead of an individual. It can make nonprofit leaders worry they aren’t connecting with the people behind the gift.

In reality, donor-advised funds aren’t a barrier to building relationships. They are simply one of many tools donors use to accomplish their charitable goals. Understanding how these funds work can help nonprofits strengthen donor engagement and create lasting connections with supporters.

People Are Behind All Giving Decisions

A donor-advised fund is exactly what its name suggests: a vehicle for charitable giving. Even when grants are processed through the community foundation, every recommendation and dollar comes from a donor who has chosen to support a mission. Remembering that is the key to success.

When your organization receives a grant from a donor-advised fund, try to think beyond the name listed on the check or accompanying letter. Behind every grant is someone who believes your work matters and has taken the time to recommend your organization for support.

Whenever possible, acknowledge and thank the individual donor just as you would any other supporter. Even when gifts are processed through a donor-advised fund, the relationship remains personal.

Viewing donor-advised funds as tools rather than donors themselves helps shift the focus back where it belongs: on the people who are investing in your organization’s success.

Make Giving as Simple as Possible

Many donors appreciate organizations that clearly communicate how donor-advised fund grants can be made.

Consider including information on your website, donation page, or printed giving materials that lets supporters know your organization welcomes grants from donor-advised funds. A simple mention can remind donors that this option is available and encourage them to recommend your organization when planning future distributions.

It’s also helpful to ensure your nonprofit’s information, such as its legal name, tax ID, and contact information, can all be located easily. When this is accurate, grants can be processed more efficiently, and you avoid delays. The more straightforward this process is, the more benefits for everything from the donor to the nonprofit.

Treat Donor-Advised Funds Like All Donors

Sometimes organizations unintentionally treat donor-advised fund gifts differently because they arrive through an intermediary, but that can be a missed chance for connection.

Individuals who use donor-advised funds are often highly engaged philanthropists. Many work closely with attorneys, accountants, and financial advisors to create long-term charitable strategies. They frequently support multiple organizations, remain involved in causes they care about, and make thoughtful decisions about where their charitable dollars will have the greatest impact.

These donors deserve the same level of stewardship as anyone else.

Share stories about your organization’s impact. Invite them to events. Keep them informed about new initiatives and opportunities to become involved. Continue building relationships over time rather than viewing the gift as a one-time transaction.

Community Foundations Are Your Partner in Philanthropy

Community foundations do more than just process grants. We help donors learn about local needs and connect them with organizations that align with their charitable interests – an education that supports thoughtful and strategic giving. That also makes us an invaluable resource for nonprofits, since we can share insights about philanthropic trends and strengthen donor relations.

Because we work closely with both donors and nonprofits, we understand the important role each plays in creating stronger communities. We know that donor-advised funds don’t create distance between non-profits and their supporters, but that it’s all an ecosystem that improves the world in the long-term.

The community foundation is always happy to answer questions, provide guidance, and help nonprofits better understand charitable giving trends. Together, we can make a lasting impact where it’s needed most.