Building Strong Relationships with Donors Who Have Donor Advised Funds
Three ways nonprofits can strengthen donor connections and support long-term engagement.
By Tod Herskovitz, Nonprofit Strategies Manager
Americans have contributed an estimated $617 billion in support to nonprofits in 2025, reflecting continued strength in charitable giving. Across the country, donor advised funds continue to play a growing role in how people support the organizations and causes they care about.
Here in Minnesota, more donors are using donor advised funds or DAFs to organize their philanthropy, involve family members in giving decisions and make strategic investments in the communities they love. Yet despite their growth, donor advised funds can still feel mysterious.
One of the most common concerns we hear at the Saint Paul & Minnesota Foundation from nonprofit leaders is that, because a grant arrives through an organization like the Foundation rather than directly from an individual donor, it can be difficult to build or maintain a relationship with the person behind the gift.
The good news is that donors with DAFs are often deeply engaged philanthropists who are intentional about their charitable giving. Many work closely with attorneys, certified public accountants and financial advisors to align their giving with their values and goals. Rather than creating distance between donors and nonprofits, donor advised funds can be an important tool within a donor's broader philanthropic strategy.
As a community foundation, we're always happy to talk with nonprofit partners about charitable giving trends and ways to strengthen donor engagement. In the meantime, here are three ways your organization can make the most of relationships with donor advised fundholders.
1. Remember that a donor advised fund is a giving tool
Behind every donor advised fund grant is a person, family or business that intentionally chooses to support your mission.
When your organization receives a grant from a donor advised fund, try not to think of it simply as a transaction from a financial institution. Whenever possible, identify and thank the individual donor who recommended the grant. Even though the funds are distributed through a foundation like ours, the decision to support your organization began with someone who believes in your work and the impact you're making in the community.
2. Make it easy for donors with donor advised funds to give
Simple reminders that your organization accepts donor advised fund grants can make it easier for donors to give. Ensure your organization's legal name, tax identification number and contact information are easy to find online. Having this information readily available can help your staff efficiently process grant recommendations and direct resources to your organization.
3. Steward donor advised fundholders like any other donor
Donor advised fund donors should receive the same thoughtful stewardship as any other supporter whenever possible. Share stories of impact, invite them to engage with your work and keep them informed about your organization's progress and priorities. In many cases, these donors are among an organization's most loyal and consistent supporters.
At the Foundation, we also provide donors with information, educational resources and opportunities to learn more about local nonprofits and community needs. We encourage active engagement and connection between donors and the organizations they support because strong relationships help strengthen our entire community.
How We Can Support
By understanding how DAFs work and can build meaningful relationships with the people who use them, your nonprofit can create new opportunities for connection, engagement and support.
The Foundation is happy to serve as a resource. As charitable giving continues to evolve, we will work with your nonprofit to help connect generosity with community impact ensuring that more resources reach organizations like yours working to make Minnesota stronger.
To learn more about how we can support your work, see our nonprofit funds & services.
“Behind every donor advised fund grant is a person, family or business that intentionally chooses to support your mission.”
Tod Herskovitz
About the Author
Tod Herskovitz, Nonprofit Strategies Manager, joined the Saint Paul & Minnesota Foundation in 2022.
The Saint Paul & Minnesota Foundation does not provide tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors regarding your individual situation before engaging in any transaction.
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