Beyond the donor: Engaging advisors in stewardship

A message from the CICF Collaborative, including Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana

Over the last several years, nonprofits have noticed that donors increasingly consult an advisor when giving, such as a financial advisor or CPA. Some work with an estate planning attorney as they update documents. Other donors rely on multiple professionals at once.

For nonprofits, the “advised donor” reality has practical implications. It means that fundraising and stewardship efforts must resonate not only with the donor, but also with the professionals who influence their choices.

So, what appeals to these advisors? Well, unsurprisingly, they want to feel confident that an organization is well-governed and financially responsible. Donors may be enthusiastic, but advisors may slow the process if they perceive financial risk or ambiguity.

One of the best ways to earn confidence is clarity.

When your organization communicates what it does, how it measures success, and how it stewards funds, you make it easier for advisors to support a donor’s intent. Happily, this does not necessarily require complex reporting. It does require straightforward language about programs, outcomes, and how gifts are used. Consistent messaging about governance and financial oversight is also helpful, especially for donors considering larger commitments or legacy gifts.

Another helpful practice is making it easy for donors to give in the ways they prefer. Advisors frequently discuss gifts of appreciated stock, IRA distributions, and other non-cash assets with clients because these strategies can be more tax-efficient than writing a check. If your organization is prepared to receive those gifts (or, if you engage the community foundation’s services to help you do so) you make it easy for advisors to recommend support. When nonprofits are not prepared, donors may be redirected elsewhere.

The CICF Collaborative can be a strong partner in this environment. We work with tax, estate planning, and financial advisors every day, and we can help facilitate complex gifts for your nonprofit. We can also help donors support your organization through an endowment or reserve fund with a CICF Collaborative entity, providing professional administration and investment oversight. For many advisors, this structure reduces complexity and increases confidence because the gift is handled through a well-established charitable institution.

If you are thinking about how to strengthen fundraising this year, consider viewing your entire audience. Donors remain the heart of the relationship, but advisors often sit at the table, too. When your organization communicates clearly and offers donor-friendly giving options, you make it easier for advised donors to act. You also position your organization as a trusted choice in a sector where trust is paramount.

About the CICF Collaborative

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »