CMF recently released phase 3 of our payout rate research series, Analysis of Donor Advised Funds from a Community Foundation Perspective, focusing on the payout rates of donor advised funds (DAFs) within the context of the philanthropic sector, specifically the payout rates of DAFs administered by Michigan community foundations.

We’re digging deeper into the roles of DAFs at community foundations, sharing examples of DAFs in action to help our community of philanthropy better understand this charitable giving tool, and consider the study’s findings in a local context. 

We recently spoke to Capital Region Community Foundation, who says that DAFs have unlocked new opportunities for community members to get involved, allowing the community foundation to act as a conduit between donors and community needs.

According to Dennis Fliehman, president and CEO of Capital Region Community Foundation, DAF holders will seek the help of the community foundation to make an impact.

“The fact that they have a connection with the community foundation gives them the opportunity to tap into the knowledge that we have about local organizations they can help. Through this connection, we can help cement relationships which in turn results in more philanthropy,” Fliehman said. 

Laurie Baumer, executive vice president of the community foundation, shared that there is more benefit to DAF donors going through community foundations instead of commercial organizations because of their knowledge of the community they serve.

“We are relational, and we can give donors opportunities to be responsive to the needs of their community,” Baumer said.

In northern Michigan, the Petoskey-Harbor Springs Area Community Foundation (PHSACF) also shared the benefits of donors collaborating with community foundations. 

“When donors partner with us, they benefit immediately from the knowledge and community connections we have,” David ‘DJ’ Jones, executive director of PHSACF, said. 

According to Jones, a donor’s deep connection to their community and their personal stories have been part of what motivates them to create DAFs. 

Jones shared the story of one of their DAF holders, a couple who lost their son at birth and created a DAF in his memory to contribute to community projects. 

“They are a young couple, just starting out but it was very important to them to be able to give back to their community and they were able to get the funds together to memorialize their son,” Jones said. 

Another couple with generational ties to the community made the Petoskey area their full-time home, and moved a commercial DAF to the community foundation.

“They saw the depth and breadth of our work and wanted to support the community they love” Mary Cummings, communications officer at PHSACF, said. “Since then, they have decided to become a part of our legacy society and are in the process of planning an estate gift to the community foundation.” 

Some community foundations have seen that donors who start a DAF are engaging in other opportunities with the foundation.

“Not only do they create DAFs but they join boards and volunteer. They give back to this community in numerous ways, financially and with their time,” Jones said. “DAFs are not a tool that they just use once at the end of the year; it’s one part to their overall commitment to our community.” 

Fliehman says that DAFs can also serve as an educational and inspirational tool for the next generation. 

“We’ve had several families that have specifically set up DAFs to educate their children and grandchildren about charitable giving,” Fliehman said. 

According to Fliehman, one family of donors gets together each year during Thanksgiving to decide how to spend the year’s distribution as a way to educate the younger generation and combine family time with philanthropy. 

In the coming weeks and months, we look forward to continued feature storytelling on the role of DAFs and other vehicles for giving. 

Want more?

We invite you to read Analysis of Donor Advised Funds from a Community Foundation Perspective and the full payout rate research series. 

Join our national webinar “A Data-Informed Dialogue on DAF Payout” on July 22 welcoming foundation peers around the country, the leaders and research teams from CMF and the Johnson Center, and national sector partners as we together explore the study's key findings and consider how these knowledge insights can inform foundation policies, practices and grantmaking goals in our efforts to support equitable thriving communities.