Why Connect About Donor-Advised Funds This Giving Season

The last few months of the year are not only a time for joy and celebration but also a period for reflection and giving back. Many affluent clients and their families are planning their charitable contributions and deciding which assets to give. As their trusted financial advisor, you hold a privileged role in helping them navigate this process, guiding them towards impactful and tax-advantaged decisions — and your clients are likely to be receptive to your input. According to a recent Bank of America Study, almost 60% of affluent donors consider charitable giving to be either very or somewhat important to their personal values and a fundamental part of their overall wealth experience.

As we approach the year’s end and the season of giving, now is the time to initiate discussions about philanthropy. Here’s why donor-advised funds (DAFs) should be a cornerstone of these conversations.

DAFs Simplify Giving

With over 1.9 million accounts and grants totaling $52.16 billion in 2022, donors are increasingly choosing DAFs to facilitate their giving. Why have DAFs become so popular? Put simply, they make the act of giving more straightforward and offer tax advantages that other giving vehicles do not. These benefits make DAFs especially attractive at year-end when clients are pressed to complete charitable contributions before the new year.

How To Connect with Clients About DAFs

We have established that clients value your experience in philanthropic planning. But are you sharing your wealth of knowledge with them, and are you communicating to your clients that you possess it?

To support you in your DAF outreach efforts, we have developed the Giving Season Activation Toolkit for Advisors.

NPT’s Giving Season Activation Toolkit

This resource equips you with the tools you need to engage with your clients thoughtfully throughout the season. It includes:

• Philanthropic conversation starters: Kickstart meaningful discussions with clients about their giving goals and how DAFs can play a role in achieving them.
• DAF giving resources: Share resources that provide valuable information about DAFs, their benefits and how they can be utilized for maximum impact.
• Ready-to-use email and social post language: Save time and effort with pre-written templates that allow you to communicate effectively with your clients and prospects about DAFs.

Get the Kit

Working with your clients during the giving season can help you deepen your relationship and introduce a philanthropic solution that their family can use for years to come. If you have questions about strategies for Giving Season, reach out today at advisorservices@nptrust.org.