Many of the principles of fundraising I learned early on really are true: listen to prospective donors to connect them to your cause; build relationships to move supporters to the next level of giving; and thank donors more often than you ask for money. These do result in better fundraising outcomes. But based on my recent experience, I’m wondering if the scarcity-based approach of holding your funding sources under lock and key could use an upgrade.
At a time of staggering inequality, wealthy individuals are using donor-advised funds, or DAFs, to claim substantial tax benefits, while often failing to move funds in a timely manor to independent nonprofits addressing urgent social needs. Of particular concern are the growing number of DAFs founded by for-profit Wall Street financial corporations that provide incentives for the warehousing of wealth. This report, Warehousing Wealth:… Read more »