How Donor Advised Funds Change Fundraising

The rapid proliferation of donor advised funds (DAFs) and the rising prominence of their sponsoring organizations are among the most disruptive innovations in philanthropy in recent years. To examine DAFs’ implications for major gift fundraising and nonprofit administration, we interview professiona...

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Main Authors: H. Daniel Heist, Genevieve G. Shaker, Rachel M. Sumsion, Jenna Tomlinson, Alyssa Minor
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Administrative Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3387/15/4/137
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author H. Daniel Heist
Genevieve G. Shaker
Rachel M. Sumsion
Jenna Tomlinson
Alyssa Minor
author_facet H. Daniel Heist
Genevieve G. Shaker
Rachel M. Sumsion
Jenna Tomlinson
Alyssa Minor
author_sort H. Daniel Heist
collection DOAJ
description The rapid proliferation of donor advised funds (DAFs) and the rising prominence of their sponsoring organizations are among the most disruptive innovations in philanthropy in recent years. To examine DAFs’ implications for major gift fundraising and nonprofit administration, we interview professional fundraisers from across the US (<i>n</i> = 46). We analyze their comments following a six-stage thematic process. We present a modified fundraising model called the “DAF Donor Relationship Management Cycle.” This new model makes a theoretical contribution to nonprofit studies by highlighting challenges and opportunities for fundraisers in working with DAFs. Among other adjustments, the new model includes gift processing as a critical component and specifies two forms of donor identification—reactive and proactive. Six challenges and four opportunities associated with the stages of the cycle are also delineated. This new model documents how DAFs disrupt fundraising methods and systems, clarifies fundraising cycle assumptions and inferences, and offers important practical insights from fundraisers for other fundraisers. Ultimately, integrated organizational-level strategies are needed to guide DAF adaptation and DAF donor engagement and to inform training and coordination of gift processing and frontline fundraising efforts.
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spelling doaj-art-bae3eca3bbac4cf38dc957bf043f2c572025-08-20T03:14:23ZengMDPI AGAdministrative Sciences2076-33872025-04-0115413710.3390/admsci15040137How Donor Advised Funds Change FundraisingH. Daniel Heist0Genevieve G. Shaker1Rachel M. Sumsion2Jenna Tomlinson3Alyssa Minor4Marriott School of Business, Brigham Young University, Provo, UT 84602, USALilly Family School of Philanthropy, Indiana University, Indianapolis, IN 46202, USAMarriott School of Business, Brigham Young University, Provo, UT 84602, USAMarriott School of Business, Brigham Young University, Provo, UT 84602, USAMarriott School of Business, Brigham Young University, Provo, UT 84602, USAThe rapid proliferation of donor advised funds (DAFs) and the rising prominence of their sponsoring organizations are among the most disruptive innovations in philanthropy in recent years. To examine DAFs’ implications for major gift fundraising and nonprofit administration, we interview professional fundraisers from across the US (<i>n</i> = 46). We analyze their comments following a six-stage thematic process. We present a modified fundraising model called the “DAF Donor Relationship Management Cycle.” This new model makes a theoretical contribution to nonprofit studies by highlighting challenges and opportunities for fundraisers in working with DAFs. Among other adjustments, the new model includes gift processing as a critical component and specifies two forms of donor identification—reactive and proactive. Six challenges and four opportunities associated with the stages of the cycle are also delineated. This new model documents how DAFs disrupt fundraising methods and systems, clarifies fundraising cycle assumptions and inferences, and offers important practical insights from fundraisers for other fundraisers. Ultimately, integrated organizational-level strategies are needed to guide DAF adaptation and DAF donor engagement and to inform training and coordination of gift processing and frontline fundraising efforts.https://www.mdpi.com/2076-3387/15/4/137donor advised fundsfundraisingdonor relationship cycle
spellingShingle H. Daniel Heist
Genevieve G. Shaker
Rachel M. Sumsion
Jenna Tomlinson
Alyssa Minor
How Donor Advised Funds Change Fundraising
Administrative Sciences
donor advised funds
fundraising
donor relationship cycle
title How Donor Advised Funds Change Fundraising
title_full How Donor Advised Funds Change Fundraising
title_fullStr How Donor Advised Funds Change Fundraising
title_full_unstemmed How Donor Advised Funds Change Fundraising
title_short How Donor Advised Funds Change Fundraising
title_sort how donor advised funds change fundraising
topic donor advised funds
fundraising
donor relationship cycle
url https://www.mdpi.com/2076-3387/15/4/137
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