In the face of evolving health, environmental, and social challenges, help your favorite nonprofit build partnerships, develop new programs adapt to their communities’ needs overnight. Responsive and flexible financing is one of the tools that makes this possible. As such, Vanguard Charitable has launched a recoverable grant program that equips you with new options to better support the causes and communities you care about.
What is a recoverable grant?
Recoverable grants provide grantees with the immediate, flexible, and high-impact funding they need, when they need it. It’s different from a traditional grant in that the funds granted may be recovered (sometimes even beyond the initial granted capital) by the donor advised fund, which Premier donors can then use to recommend additional grants.
Recoverable grants begin a granting cycle that you can continue by re-granting charitable dollars recovered from a prior recoverable grant.
Join the Movement
See how Vanguard Charitable donors are already using recoverable grants to support the causes they care about.
Bridge Funding Gaps
A Vanguard Charitable donor wants to ensure that every dollar in their donor-advised fund is as impactful as possible, especially in light of Covid-19 and the increased urgency for philanthropic support around the globe.
UNICEF USA receives millions of dollars in donations each year to support their global efforts to give every child an equitable chance in life. However, the timing gap between when a donor makes a commitment and when UNICEF receives the pledged cash can be a matter of life and death, delaying UNICEF’s ability to deliver medical supplies, clean water, educational materials, and more in times of crises.
A Vanguard Charitable donor recommended a recoverable grant to the UNICEF USA Bridge Fund to provide the up-front funding UNICEF needs to move quickly to prefinance COVID-19 vaccines, deliver clean water in the wake of hurricanes, distribute mosquito nets before malaria season, and more. The pledged cash that UNICEF ultimately receives from its donors provides the source of grant recovery for the Vanguard Charitable donor’s account.
As UNICEF leads the procurement and delivery of two billion COVID-19 vaccine doses to countries in need around the globe, the recoverable grant funds help accelerate funding so that more people can access vaccines worldwide. In 2021, for example, the Bridge Fund helped Nigeria purchase cold chain storage equipment six months ahead of funding so that it could be prepared for vaccine delivery.
Grow Programs Quickly
A life-long advocate for public health, a Vanguard Charitable donor cares deeply about global access to health care and technology needed to eradicate diseases and promote long-term community health.
With Peru facing high rates of the deadliest form of tuberculosis, Partners In Health, a leading global health nonprofit, sought to build a health center in Lima focused on the treatment and prevention of tuberculosis across Peru. They needed to fundraise quickly so they could kick off the four-year development of the center, which, if successful, has the potential to generate its own revenue and become financially self-sufficient.
The donor recommended a recoverable grant to Partners In Health to help fund the construction of the health center in Lima, Peru. Recoverable grants enabled Partners In Health to fundraise and start construction faster than they would have through a traditional capital campaign and, if the center reaches its goals, the donor’s donor-advised fund may recover funds for even more meaningful giving.
Partners In Health met its full fundraising goal with the help of recoverable grants from the Vanguard Charitable donor and finalized the health center’s design in the same year. The outbreak of COVID-19 in Peru, however, paused construction and Partners In Health pivoted to support the Peruvian government’s efforts to respond to COVID-19. As construction resumes in 2021, the flexibility of recoverable grants makes it easier for Partners In Health to adjust its timeline for the health center in response to the pandemic.
Expand Charitable Goals
A Vanguard Charitable donor is deeply focused on pioneering new models for nonprofits to grow their impact effectively and exponentially. Refugee support has been long overlooked by these types of innovative financing models.
The more than 82.4 million people who are refugees worldwide will likely be so, on average, for over ten years.* Opportunities for displaced families and individuals to regain stability and build new livelihoods, however, are woefully limited. Kiva, a major microfinance nonprofit, sought to expand its charitable activities by launching its first fund that would provide loans to help displaced people secure new livelihoods.
A Vanguard Charitable donor recommended a recoverable grant to Kiva’s Refugee Investment Fund to pioneer lending to displaced people who otherwise wouldn’t be able to access loans they need to generate new livelihoods. The recoverable grant, which can be recovered by returns from the fund’s lending activities, helps Kiva grow its mission while proving out a new model of refugee support.
Global humanitarian crises continue to displace people and families. Access to capital can be the missing piece that helps refugees establish a secure and fulfilling life in their new communities. The recoverable grant funds help Kiva pilot its new lending model, which, if successful, could prove refugees are worth investing in and unlock more traditional forms of capital.
*The term ‘refugees’ refers to both refugees and internally displaced people.
Vanguard Charitable has partnered with CapShift, a leading provider of impact investing and recoverable grant solutions, to develop a comprehensive menu of recoverable grant opportunities for our Premier donors. CapShift works with donors to put philanthropic capital to work for communities and the planet, and together, we have the opportunity to direct millions of recoverable grant dollars to work for nonprofit organizations around the globe. You can learn more about CapShift here.
Frequently asked questions about the Program
How do I get started?
If you are a Premier donor with Vanguard Charitable, reach out to your Philanthropic Advisor (email@example.com) to start the conversation about recoverable grants. If you're ready to start now, register for a free account on the CapShift platform today to explore these and other opportunities.
How long does the process take?
Recoverable grants are more complex than a typical grant. Depending on the specifics of the opportunity, a recoverable grant can take from one week up to several weeks to process.
What is the minimum grant size for a recoverable grant?
Vanguard Charitable requires a $25,000 minimum grant size for recoverable grants.
What happens if a grantee does not repay the recoverable grant amount?
Recoverable grants are meant to be flexible and are a charitable endeavor. Recoverable grants are only recovered under certain circumstances and grantees are not obligated to recover funds to the grantor.
In an episode of The Value in Giving podcast, Host Rebecca Moffett is joined by Liz Sessler, Chief Operating Officer at CapShift to discuss how you can maximize your charitable impact with creative giving vehicles, such as recoverable grants. Liz and Rebecca discuss how recoverable grants are strategic philanthropic tools donors can use for impact investing through their donor-advised funds. This episode details how recoverable grants are different from traditional grants, three ways donors use recoverable grants, and tips for philanthropists who are looking to make an impact through recoverable grants. Listen today!
Frequently asked questions about the Platform
How do I access the CapShift platform?
Once you have worked with your Vanguard Charitable Philanthropic Advisor (firstname.lastname@example.org) to secure a login, you can click here to go to the CapShift platform. To secure a login now, click here. You can also access the platform at any point through the top right-hand button on the CapShift website.
I received an email with a link to set up my account on the CapShift platform, but when I clicked the link, it no longer worked. What happened?
The account set-up link expires after 24 hours for security purposes. To request a new link, you can respond to the initial email you received or send a note to email@example.com.
I forget my password. How do I log in?
Click the “Forgot Password?” button at the bottom of the login page. You can also send any questions to firstname.lastname@example.org.
I want to change the email that’s linked to my account. How do I do so?
Send an email to email@example.com with your original email address and the new email address you would like to update it to, and the CapShift team will take it from there.
Interested in seeing what else is available?
Register for a free account on the CapShift platform today to explore these and other opportunities. For any questions or to learn more about the program, reach out to your Relationship Manager.