Untapped Fundraising Potential: Demystifying Donor-Advised Funds

Untapped Fundraising Potential: Demystifying Donor-Advised Funds March 20, 2018 Presenters: Eva Nico, Senior Director of Programs, GuideStar Amy Pirozzolo, VP Marketing, Fidelity Charitable

Today s Speakers Eva Nico Senior Director of Programs, GuideStar Amy Pirozzolo Vice President, Fidelity Charitable 2

HAVE QUESTIONS? Questions go in the questions tab Note: Today s webinar will be recorded. We will email everyone a copy of the recording after the event. 3

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Agenda 1. Insights about donors gleaned from analysis of 104,000 donors giving behavior and survey data 2. How to connect with these donors and how to incorporate DAFs into your fundraising strategy 3. What donors are seeing about your organization and how to encourage them to use their DAFs to support your work 4. Q&A 4

D E M Y S T I F Y I N G D O N O R - A D V I S E D F U N D S GIVING IS GROWING Individual donors are driving the rise in philanthropic giving Giving USA 2017 Infographic 5

Data & Information Flow in the Social Sector Better data. Better decisions. Better world. 2018

D E M Y S T I F Y I N G D O N O R - A D V I S E D F U N D S GUIDESTAR S PARTNERS IN GROWING YOUR VISIBLITY Better data. Better decisions. Better world. Online Giving Donor Advised Funds Grants Management 7

Who is Fidelity Charitable? Since our inception as a public charity in 1991, our mission has remained the same to grow the American tradition of philanthropy by providing programs that make charitable giving accessible, simple, and effective. 8

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S What is a donor-advised fund (DAF) A donor-advised fund, is one of the easiest and most tax-advantageous ways to give to charity 1 2 3 Give Donors make a tax-deductible donation 1 Grow grow the donation tax-free, Grant and support charities 1 For contributions of complex or non-publicly traded assets generally fair market value is determined by a qualified appraiser in compliance with IRS. 9

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S The number of DAF accounts is growing rapidly 162K 177K 201K 217K 242K 269K 285K DAFs outnumber foundations 3:1 2010 2016 Number of donor-advised fund accounts in the U.S. Source: National Philanthropic Trust 2017 Donor-Advised Fund Report 10

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Fidelity Charitable: the country s 2 nd -largest grantmaker 179,804 NUMBER OF DONORS $1.1 BILLION $4.5 BILLION 63K 125K 108,482 NUMBER OF GIVING ACCOUNTS 2007 2017 Total dollars granted to charities 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Grant dollars have quadrupled, supporting nearly 2x the nonprofits as 10 years ago. Fidelity Charitable 2018 Giving Report 11

When you make a contribution to the donoradvised fund you re dealing with a system that really is built to make it possible for you to put 98% of your thinking into the giving and 2% into the execution. - Mike Bradley, Fidelity Charitable donor 12

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S DAF donors are strategic and committed Planning for future, focusing on philanthropy 55 yrs AVERAGE DONOR AGE AT OPENING 85% GIVE TO 6+ CHARITIES 79% VOLUNTEERED IN THE LAST YEAR $19,157 57% 8% Median Giving Account balance Percentage of Giving Accounts with balances under $25,000 Number of Giving Accounts with balances of more than $250,000 Fidelity Charitable 2015, 2016 and 2018 Giving Reports 13

Donors seek to maximize the benefits of giving Financial reasons 90% 76% 76% TO REALIZE AN IMMEDIATE TAX DEDUCTION FOR CHARITABLE GIVING TO DONATE APPRECIATED ASSETS, SUCH AS PUBLICLY TRADED STOCK, PRIVATELY HELD ASSETS FOR INVESTMENT GROWTH OF CHARITABLE ASSETS Strategic planning reasons 69% 68% To better organize and keep a record of my giving To give me time to decide where to give 62% To sustain my giving in retirement Fidelity Charitable 2015 Giving Report 14

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Donors give actively to the causes they care about The average number of grants per Giving Account has increased over the last decade. Average number of grants per Giving Account $4,246 AVERAGE GRANT SIZE 2007 2017 6.2 Grants 9.7 Grants 505 Grants OF MORE THAN $1 MILLION Fidelity Charitable 2018 Giving Report 15

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Three-quarters of contribution dollars are granted within 5 years Fidelity Charitable 2018 Giving Report 16

Giving patterns of donors mirror national trends Donors support both local and national charities Education and religion are top charitable sectors EDUCATION RELIGION Fidelity Charitable Donors 28% 15% Overall U.S. Giving 15% 32% Fidelity Charitable 2017 and 2018 Giving Reports 17

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Summing it up: How Fidelity Charitable donors give Give strategically Give actively Give using numerous methods Give in their communities, but also more broadly 18

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S F I D E L I T Y C H A R I T A B L E Reaching DAF Donors: Strategies for Nonprofits 19

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Key strategies Recognize the donor while being aware that they re using the DAF vehicle Make it easy to give to your org from their DAF Keep your Nonprofit Profile on GuideStar fresh & compelling 20

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Flag and follow up Recognize commitment to giving Target for a closer relationship Make sure to flag DAF donors in database. Recognize them in stewardship, not the DAF sponsor. Seek to engage, even if initial gift is small. 21

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S Target with planned giving appeals Fidelity Charitable Donors 8% 42% Have set up a bequest or legacy giving vehicle Giving USA 2017: OF ALL GIVING IN 2016 WAS BY BEQUEST 19% Plan to establish a legacy giving vehicle in the future Fidelity Charitable 2015 Giving and Planning Report 22

What is DAF Direct? DAF Direct is a free, easy-to-install web application that enables your donors to initiate grant recommendations from their donor-advised fund (DAF) directly from your website or online fundraising campaigns. Adding DAF Direct to your website and fundraising campaigns may benefit your organization as well as your donors by providing: A convenient way to donate The potential to grow your donor base Opportunities to educate donors Jane Scott 23 Essex St. Salem, MA 01970 Visit DAFdirect.org to download DAF Direct today 23

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S A case study: St. Labre Indian School Began DAF promotions fall 2016 Results: Fidelity Charitable-sourced giving - 2015 $44,550 ($262.00 average) - 2016 $58,160 ($295.00 average) - 2017 $57,118* ($293.00 average) 10 x s DM average * BEFORE the holiday giving season! 30%+ in giving 24

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S F I D E L I T Y C H A R I T A B L E Researching Charities on FidelityCharitable.org 26

How donors research charities from FidelityCharitable.org 27

THE PROFILE You already have a Profile on GuideStar! 28 28

THE PROFILE You can claim it to tell your whole story 29 29

HOW TO CLAIM GuideStar needs to verify you before you can add info to a Profile Go to www.guidestar.org Follow the steps: 1 TIP: Use your work e-mail Create an Account & verify e-mail 2 3 Click on Update Nonprofit Profile Have your EIN & submit a request 30 30

SEALS OF TRANSPARENCY Get your 2018 GuideStar Seal of Transparency Basic Information: So you can be found Financial Information: So you can build trust Program Information: So you can tell your story Results: So you can show the difference you make 31 31

BEST PRACTICES GUIDE TO NONPROFIT INFORMATION 32 32

EARN BRONZE Get to Bronze, FIRST by completing required fields - marked with * 33 33

EARN BRONZE Geographic Area Served By program Need more than 5? Go bigger 34 34

Earn Silver: You Have 2 Options to Complete Better data. Better decisions. Better world. 35 35

Earn Gold: Only 5 Charting Impact Questions Better data. Better decisions. Better world. 36 36

EARN PLATINUM Get the ULTIAMTE SEAL - Platinum Results: So you can show the difference you make 37 37

EARN PLATINUM Don t just tell. Show! 38

CELEBRATE Go to www.guidestar.org Click Update Nonprofit Profile, Publish! Click the name of your organization (once you ve claimed and been approved to update) Get your Seals in Benefits & Rewards & celebrate! 39

Q & A Eva Nico Senior Director of Programs, GuideStar Amy Pirozzolo Vice President, Fidelity Charitable 41

Thank You! 42