Engaging DAF Holders in Your Challenge Match: Tips & Tricks

Donor-Advised Funds (DAFs) have become one of the most popular tools for philanthropy, offering donors an efficient way to manage and direct their charitable giving. However, engaging DAF holders in your nonprofit’s challenge match campaign presents a unique opportunity to increase funding and participation. By making it easy for these donors to get involved and showing them the value of their contributions, you can significantly boost your challenge match success.

In this blog post, we’ll cover the best practices for engaging DAF holders in your challenge match campaign. From making their participation seamless to communicating the impact of their involvement, we’ll provide strategies that will help you maximize their contributions and ensure that DAF donors are an integral part of your fundraising efforts.

Engaging DAF holders in a challenge match campaign is a win-win for both the nonprofit and the donor in question. DAF holders have already committed significant funds to philanthropy, making them prime candidates for supporting challenge matches. By simplifying the process and communicating the impact of their participation, you can maximize contributions from these donors and achieve greater fundraising success. Let’s begin!

What are Donor-Advised Funds (DAFs) and Why They Matter

Donor-Advised Funds are charitable giving accounts that allow donors to contribute assets, receive immediate tax deductions, and then recommend grants to nonprofit organizations at their discretion. The popularity of DAFs has grown significantly in recent years due to their tax advantages and flexibility.

Here’s why DAFs matter to your challenge match campaign:

• Substantial Giving Capacity: DAF holders are often high-net-worth individuals who have set aside significant funds for charitable giving. This makes them ideal candidates for challenge matches, where larger contributions can help your nonprofit reach its goals more quickly.
• Flexible Giving: DAFs allow donors to direct their giving whenever they choose, without the need to give away large sums all at once. This means that DAF holders may have funds available to support your challenge match campaign.
• Tax Benefits: Donors receive immediate tax deductions for their contributions to a DAF. This can be a significant motivator, especially during year-end campaigns when individuals seek ways to minimize their tax liability. A challenge match adds further value by doubling or tripling the impact of each donation.

Understanding how DAFs work and why they’re a valuable tool for donors is key to engaging this group effectively in your challenge match campaign. Now that you have a better idea, we can proceed to exploring the way DAF holders can fit into your upcoming campaign efforts.

The Benefits of Engaging DAF Holders in Challenge Matches

Engaging DAF holders in your challenge match offers several benefits for your campaign. These include:

• Increased Funding: DAF holders can contribute larger gifts, which significantly increase your total funds raised. Their contributions can serve as a cornerstone for the campaign, helping to build momentum and inspire other donors to participate.
• Leveraged Giving: Since DAFs can be used for challenge matches, you can double or even triple the amount raised through the challenge. This amplifies the impact of each donation, leading to a stronger overall campaign.
• Long-Term Donor Relationships: Engaging DAF holders early in your challenge match campaign helps establish a relationship that can lead to future support. These donors often have ongoing philanthropic goals and can become consistent supporters of your organization.
• Attracting Other High-Value Donors: When high-net-worth donors participate in a challenge match, it can attract other potential donors, too. The visibility of their participation can motivate others to give at higher levels, expanding your donor base significantly.

By engaging DAF holders in your challenge match campaign, you maximize the potential for increased donations and strengthen your nonprofit’s long-term fundraising efforts.

Step #1: Making DAF Participation Seamless and Easy

One of the main barriers to DAF participation in a challenge match campaign is the complexity of the donation process. For DAF holders to contribute seamlessly, nonprofits need to streamline the process and provide clear guidance on how they can do so.

Here’s how to make it easy for DAF holders to get involved:

• Offer Clear Instructions: Provide donors with clear instructions on how to make a contribution from their DAF. This includes step-by-step guidance on how to recommend grants, the specific information they need to include, and the deadlines for the challenge match.
• Provide Pre-Approved Donation Templates: Some DAF donors prefer to submit their donations electronically. Providing pre-filled templates with your nonprofit’s details and the match terms can make the process even easier.
• Enable Multiple Donation Methods: Ensure that your website or donation platform accommodates DAF donations by offering different methods of submitting contributions. This flexibility helps accommodate donors who may prefer to contribute through their DAF provider’s platform or via check.
• Partner with DAF Custodians: Work with DAF custodians (such as Schwab, Fidelity, or Vanguard) to ensure that donations are processed efficiently. Many custodians offer straightforward methods for nonprofits to track DAF donations and can help facilitate the process.

By simplifying the DAF donation process and providing clear instructions, you reduce the barriers to participation, making it easier for donors to get involved in your challenge match.

Step #2: Communicating the Impact of DAF Contributions

DAF holders are often highly motivated by the desire to make a meaningful impact. To engage them effectively, it’s crucial to communicate how their contributions will be used and the difference they will make.

Here are a few best practices demonstrating how to communicate the impact of their involvement:

• Show Donor Impact: Use stories and data to show how DAF contributions will directly support your cause. Whether it’s funding a specific program or providing vital resources to a community in need, donors want to understand the tangible results of their contributions.
• Share Progress Updates: Throughout the campaign, send updates showing how much has been raised, how much of the match has been met, and how their contributions are helping to reach the goal. Regular updates help donors feel engaged and connected to the campaign’s progress.
• Personalize Communication: Tailor your messaging to highlight the specific impact that each DAF donor’s contribution will have on the organization. Personalization makes donors feel valued and appreciated, reinforcing their emotional connection to your mission.
• Acknowledge Their Role: Publicly thank DAF holders for their contributions, whether through recognition on your website, social media shoutouts, or exclusive updates. Acknowledging their support not only reinforces the impact of their gift but also helps foster long-term donor loyalty.

Clearly communicating the impact of DAF contributions encourages continued involvement and strengthens the relationship between the donor and your nonprofit.

Step #3: Encouraging DAF Holders to Activate Their Challenge Matches

Once DAF holders have made their contributions, it’s essential to ensure they activate any eligible challenge matches to maximize their impact. To help donors navigate the process of activating their match, follow these best practices:

• Provide Clear Activation Instructions: After a DAF donor contributes, share clear steps on how to activate their challenge match and guidance for overcoming common misconceptions. Whether it’s submitting a form or confirming donation details, ensuring the process is simple and easy to follow will increase participation in the match.
• Communicate the Timeframe: Let DAF donors know the deadlines for activating their challenge match to ensure their donation qualifies. Clear timelines create a sense of urgency, encouraging donors to act promptly.
• Follow-up for Activation: After a DAF donation is made, send a reminder to donors to activate the match. Personalize your communication to make it easy for them to complete the necessary steps, ensuring they don’t miss out on the opportunity to double or triple their contribution.
• Offer Support: Provide assistance for DAF holders who may be unsure about how to activate their challenge match. Offering support, whether by providing links, answering questions, or directly guiding them through the process, helps increase match activation rates.

Activating challenge matches is a simple yet effective way to amplify the impact of DAF donations, pushing your campaign closer to its fundraising goal.

Step #4: Tracking and Acknowledging DAF Donations in Real-Time

Accurate tracking of DAF donations is essential for reporting progress and ensuring transparency.

Here’s how you can track DAF donations effectively:

• Utilize Donor Management Software: Invest in donor management software that can track DAF donations in real-time. This software should enable you to monitor contributions, track progress, and keep donors informed about how their donations are contributing to the match goal.
• Provide Regular Updates: Keep DAF donors updated on the status of their contributions. This can include tracking their personal contribution and the overall progress toward the match goal. Transparency builds trust and encourages continued engagement.
• Acknowledge Donations Promptly: Ensure that DAF donations are acknowledged in a timely manner. Sending personalized thank-you notes and recognition emails demonstrates to donors that their contributions are truly valued and appreciated.

Tracking DAF donations in real-time and providing prompt acknowledgments ensures that donors feel valued and connected to the campaign.

Step #5: Building Long-Term Relationships with DAF Holders

DAF holders are often engaged in long-term philanthropic giving, making them valuable, ongoing supporters of your nonprofit.

Here’s how your team can build lasting relationships with them, kicking off from a challenge match campaign:

• Regular Communication: Keep DAF donors informed about your organization’s work, upcoming campaigns, and how their previous gifts have made a difference. Building a consistent communication strategy keeps them engaged and connected to your mission.
• Invite Further Involvement: Encourage DAF donors to take a more active role in your nonprofit’s activities. Whether it’s volunteering, attending events, or serving on advisory boards, offering these opportunities deepens their connection to your cause.
• Provide Exclusive Updates: Offer DAF donors exclusive updates on the impact of their giving. Personalized communication demonstrates that you value their contributions and strengthens the bond between the donor and the nonprofit.

By engaging DAF holders with personalized, consistent communication, you can turn them into long-term supporters who contribute to your cause year after year. Maybe your challenge match campaign can become an annually recurring one!

Wrapping Up & Next Steps

Engaging Donor-Advised Fund holders in your challenge match campaign is an excellent way to increase funding and participation. By making the process seamless, communicating the impact of their contributions, and leveraging matching gifts, your nonprofit can maximize the effectiveness of these donations. With the right approach, DAF holders can become ongoing, loyal supporters of your mission, driving future success.

Explore Employee Matching Gifts for Even More Fundraising Success

If you’re looking to boost your fundraising efforts further, consider integrating employee matching gift programs into your challenge match campaign. Double the Donation’s tools help you identify, track, and maximize these matching gift opportunities. Request a demo today to discover how you can enhance your campaign and raise even more funds through employee matching gifts.