Don’t Lose the Legacy : Turn DAF Giving into a Family Affair

Every development professional or charity executive director fears it – the “DAF Cliff.”  That moment when a reliable source of annual giving from a donor advised fund (DAF ) disappears. This usually occurs without notice; the gift just simply came to an end, with no explanation.

The answer to this may prove to be very simple. The donor who may have given for years through their donor advised fund has passed away or reached a stage in life where they have chosen to step away from making giving decisions.

Regardless of the exact circumstance, the DAF is now in the hands of a Successor-Advisor. This is usually a spouse, child or grandchild of the donor. Sometimes, it may be a group of family members who are equal Successor-Advisors to each other. Your lost annual grant came about because the new successors may have their own interests as to what charities or causes they choose to support.

In a prior article, nonprofit staff learned how to identify existing DAF givers among their donor base. To ensure the longevity of a DAF gift, a nonprofit needs to move to a next step and recognize and nurture a “Family Relationship” instead of a “Donor Relationship.”

This article will illustrate the relevant steps needed to deepen your charity’s relationship with the DAF donor and their family.

The annual family meeting to decide on charities that deserve annual grants.

Understanding the Successor-Advisor

Younger generations may have very different priorities concerning the important causes that deserve charitable support. The founding donor may have been motivated by institutional loyalty or a traditional “bricks-and-mortar” capital campaign. Younger Gen X and Millennial successors may want to make an impact on current causes, such as social justice, global equity, and climate concerns more so than just staying the course on what their parent or grandparent may have felt was important.

Ask the Legacy Question

Ask your current DAF donor how they make their annual giving decision. In many cases, you may discover that there is an “annual family meeting” where the founding donor gathers other family members (likely the future successors) and discuss causes and the grants to be made.

It is your goal to get a seat at that table and make other family members more familiar with your charity and the good work that the founding donor has helped achieve with those annual DAF gifts.

By understanding that process, you not only better understand the familial relationships involved but who best to nurture those inroads with into the future. In this manner, you can become an ally to the founding donor in helping pass down their belief in generosity toward the causes important to them.

The “Impact First “ Report

The original wealth that helped establish the DAF came from the founding donor, not the successors. Since the successors were not the ones “writing the check”, they may never had felt the same level of commitment or pride in what your charity may have accomplished with the grant dollars from the DAF and the interests of the original donor.

Create a visual “impact report” that showcases on how the gifts from the DAF have made a specific tangible impact. Create videos or infographics that allow the primary donor to share with their family members. This makes it easy for a parent or grandparent to share those stories and say, ”Look at the great work this organization has been doing with our gifts.”

Creating Entry Points Across Multiple Generations

There are a variety of ways to involve the family members of the original donor during their lifetime.

Opportunities include:

• Boards & Junior Boards: You can invite the adult family members to be part of professional groups and auxiliary boards affiliated with the charity.

• Family Volunteering: Utilize existing efforts that the donor can bring family members to see the mission in action. In some cases, perhaps specific events can be created to involve family members to take part in making a  tangible impact.

Conclusion

DAFs are built for longevity. By building a sense of stewardship in advance with a family instead of just the donor, you can keep an enduring relationship going. Don’t wait for the loss of a grant and a succession to happen to start the introduction.

At Generosity Nexus, we have nearly 15 years of experience in helping nonprofits position themselves for long-term success.

Don’t hesitate to schedule an appointment to learn more about how we can help you.