Dear FFTC,

My nonprofit organization just received our first grant from a donor advised fund held at Foundation For The Carolinas! We aren’t sure how to acknowledge donors who use donor advised funds. Can you help?

–  DAFed & Confused

Dear DAFed & Confused,

Congratulations on your recent grant! What an exciting testament to your organization’s work and mission.

It’s great to see your commitment to ensuring donors feel appreciated.  And thanking donors is an integral part of building a relationship with these individuals – including those who give through their FFTC Donor Advised Fund.

Let’s start with a little background for everyone new to donor advised funds:  Donor advised funds are a convenient and tax-efficient charitable tool, commonly established at and administered by community foundations like FFTC. Donors are able to contribute to their funds on their own schedule and to recommend grants to 501(c)3 organizations when they are ready. While FFTC facilitates the donation process, the donor is the driving force behind the gift. With a gift made through a donor advised fund there are a few key differences to keep in mind when acknowledging the gift and expressing your gratitude:

1. Avoid tax acknowledgement language.

When your nonprofit receives a grant from a FFTC Donor Advised Fund, you don’t need to send the donor a tax receipt. This is because FFTC fundholders are eligible to claim a deduction when they contribute to their fund, so FFTC handles the tax documentation. In your message to the donor, you can acknowledge that you received the gift from their donor advised fund but omit any mention of their ability to claim a tax deduction for the gift. It may be helpful to remind the donor that your acknowledgment is not a tax receipt.

2. But do say thank you!

While the grant is distributed by FFTC, it was recommended by a generous donor who cares about your nonprofit and cause. Always thank the donor who recommended the grant directly. When we send the grant, we ensure you have all the contact information you need to convey your appreciation – provided that the donor did not specifically request anonymity.

3. Develop a strategy for future giving.

Donors who give through a donor advised fund typically have an intentional strategy for philanthropy. While FFTC manages the administration of the fund, your nonprofit should develop a plan to cultivate and personally engage the donor to further connect them to your mission. This could include:

• Sharing impact stories through photos, testimonials, videos or a newsletter feature
• Offering volunteer opportunities to deepen their connection
• Going beyond a standard acknowledgement letter by sending a handwritten note
• Inviting them to deepen their connection through a visit or special event

Every donor – whether a longtime supporter or a first-time grantmaker – plays an important role in advancing your nonprofit’s mission. While you can’t provide tax documentation, you can recognize their generosity in meaningful, creative and personal ways. We hope this helps!

Contact our Donor Operations team at support@fftc.org for more information about grants made through FFTC Donor Advised Funds.