Peter Lipsett, Vice President at DonorsTrust, wants nonprofits to see donor advised funds as more than a warehouse of wealth. For donor advised funds, the key fact is simple: a dollar put into one has to go to charity.Peter describes a DAF as a charitable savings account, like a health savings account for charitable dollars. The number of DAF accounts rose 27.6% between 2020 and 2021 to more than 1.2 million, and he argues that nonprofits should learn how these donors give instead of treating the vehicle as a barrier.In this episode:Why smaller mission-driven DAFs and community foundations can become useful nonprofit partnersHow donor advised fund dollars supported more level giving during the first half of 2020Why nonprofits should thank DAF donors but not send a tax receipt for the giftThe database detail that helps future asks: record that a donor gives through a DAFHow a known DAF donor may be ready for a capital campaign or a $5,000 additional giftYou will leave with a clearer way to acknowledge DAF gifts, cultivate donors over time, and prepare for money that may be available when the organization needs it. Peter’s recommendation is to read the National Philanthropic Trust Donor Advised Fund Report to understand the landscape.Episode highlights:

Why a DAF is not a warehouse of wealth

The charitable savings account for giving

What DAFs can offer nonprofit partners

The questions DAFs keep raising

Beyond the warehouse-of-wealth claim

The concern about anonymous DAF giving

Where donor advised funds are headed

How to recognize and cultivate DAF donors