We’ve heard there’s some confusion in the nonprofit world about donor-advised funds (DAFs). We wanted to offer a few tips—from one nonprofit to another—about how best to engage with donors who give through DAFs and spread the word that your organization welcomes DAF grants.

First, the basics: A donor-advised fund (DAF) is a charitable giving account designed exclusively to invest in, grow, and ultimately maximize the amount of assets a donor has available to give to charities.

At their core, DAFs serve as seamless giving vehicles by reducing the administrative burden on donors and nonprofits. DAFs are also poised to maximize sustained philanthropic impact as they are structured to allow donors to grow diverse assets over time.

The best way for nonprofits to successfully engage with DAF account advisors is to reach out directly to the donors. Your organization likely already talks to donors who have DAF accounts. Reminding donors that you are DAF-friendly is a great way to encourage them to direct grants to your organization.

Donors who open DAF accounts care deeply about giving back—they establish these accounts for the express purpose of supporting charity. Once donated to a DAF account, funds can only be used for charitable purposes. DAF account holders view philanthropy as a core value and they often include loved ones in the giving process.

DAF donors are savvy, strategic philanthropists, and they use their DAF accounts to give conveniently, efficiently, and generously. Understanding their mindset will go a long way in successfully educating them about your nonprofit and encouraging them to give.

Read the full article about donor-advised funds at Vanguard Charitable.