3 Tips to Start A Donor Acquisition Program

Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity.

Today’s question comes from a nonprofit leader who needs advice on how to cultivate donor-advised fund (DAF) donors.

Dear Charity Clairity, We recently received a $5,000 gift from a donor-advised fund. The letter accompanying the check said the gift was made on behalf of “Anonymous.” We do not know who this person is or how to reach them. What do you recommend?

— Trying to Cultivate DAF Donors

Dear Trying to Cultivate,

Welcome to the wonderful world of DAF giving! You’ve encountered one of its most vexing realities: anonymous donors.

Let’s start with what you can do, and then I’ll share some thoughts on how to try to unmask the mystery donor.

What You Can Do

First, acknowledge the gift properly. The IRS requires you to send an acknowledgment to the DAF sponsor (in this case, the organization that manages the fund), not to the anonymous donor. So find out who the sponsor is (it will likely be on the letter or check) and send your formal tax acknowledgment to them.

Second, even though you can’t send a personal thank-you to the anonymous donor, do send a warm thank-you to the DAF sponsor. Express genuine gratitude and let them know the impact of the gift. DAF sponsors keep records and can influence future giving from their donors; a warm relationship with the sponsor is always valuable.

Third, create a “DAF file” in your database. Track this gift, the sponsor, and any information you do have. Over time, you may be able to connect the dots.

How to Try to Unmask the Donor

There are a few approaches to try:

• Ask the DAF sponsor. Some DAF sponsors will tell you who the donor is if you ask politely. Many will not (they are bound by the donor’s privacy preferences). But it’s worth asking.
• Review your existing donor database. Is there someone in your database who might have made this gift? Cross-reference with any recent cultivation activities, event attendees, newsletter subscribers, website visitors (if you have that data), etc.
• Make a public acknowledgment. In your newsletter, on your website, in your annual report, consider acknowledging DAF gifts publicly: “We are grateful for recent gifts made through donor-advised funds.” Donors who gave anonymously sometimes appreciate this and will reach out to you.
• Be patient. Anonymous DAF donors sometimes reveal themselves over time, especially as they become more engaged with your cause. Continue your regular outreach and stewardship, and remain open to the possibility that this donor will eventually make themselves known.

I hope this helps!

— Charity Clairity

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