Beyond Cash: 3 Non-Cash Assets Every Fundraiser Should Be Talking About
If your donor conversations only focus on credit cards or year-end checks, you could be missing out on bigger opportunities. More and more, donors are using non-cash assets to give in ways that are smarter for them and more impactful for nonprofits. These gifts may sound complicated at first, but the truth is they’re becoming increasingly common, and they should be part of every fundraiser’s toolkit.
Donor Advised Funds (DAFs):
One of the simplest places to start is with Donor Advised Funds (DAFs). They’ve quickly become the fastest-growing way people give. Donors put money into their fund, get the tax benefits right away, and then decide when and where to send grants. If you’ve ever had a supporter make a large one-time gift, it’s worth asking if they’ve set up a DAF. Many already have, and a quick reminder that you accept these grants can make it easier for them to direct support your way.
As our friends at Chariot remind us, DAFs are shaping the future of philanthropy. “DAFs are winning out over family foundations because of cost, flexibility, and ease of use. Plus, DAFs now offer tech that makes it easier to involve family in giving decisions.” — Elon Packin, Head of Partnerships at Chariot
And don’t forget to mark your calendars! The second annual DAF Day takes place on Thursday, October 9- the national day of giving through Donor-Advised Funds.
Qualified Charitable Distributions (QCDs):
Another powerful tool is the Qualified Charitable Distribution (QCD). Donors over 70½ with traditional IRAs are required to start withdrawing funds every year (Required Minimum Distributions), which are subject to taxation. QCDs allow them to transfer money directly to your nonprofit, reducing their taxable income for that year. For your organization, it’s a way to build deeper relationships with older donors and help them give in a way that feels sustainable.
Our stratgic partners at LifeLegacy even make this process easier. Their Pro package includes a QCD tool that can guide your donors step by step and automatically track new gifts in your donor dashboard. Click here to learn more about their giving tools, which are especially helpful around year-end when 30% of giving in the U.S. happens!
Charitable Gift Annuities (CGAs):
And then there are Charitable Gift Annuities (CGAs). These gifts give donors fixed income for life while supporting your mission at the same time. They also open the door to bigger legacy conversations about how someone wants to be remembered. Even if your nonprofit isn’t set up to handle CGAs on its own, you can often partner with a community foundation to make them available. For example, if you’re based in New York City, that may mean working with Brooklyn Org or The New York Community Trust to ensure your donors have access to this giving option. For some donors, knowing they’ll receive guaranteed income can be the nudge they need to make a meaningful, lasting gift.
Conclusion:
Cash isn’t the only way people give. DAFs, QCDs, and CGAs are tools that can unlock larger, more creative gifts- if you’re willing to start the conversation. By making these part of your fundraising strategy, you not only raise more money, you also help donors give in ways that truly work for them.
Bonus tip:
When you set up these additional giving mechanisms for your donors, make sure your team understands what the gifts will look like, so that acknowledgements are handled properly. I’ve heard horror stories of nonprofits not acknowledging DAF gifts because they don’t understand that a gift from, for example, Vanguard Charitable or Schwab Charitable actually comes from a person. Often, there are instructions included, but you need to look for them and remember that the donor has already received their tax deduction.