| Vanguard Charitable

Are you searching for new charities to give to but not sure how to begin narrowing down your list of potential gift recipients? With so many worthy causes and charities from which to choose, it’s difficult to know where to begin your search. 

 

Looking at how Vanguard Charitable donors give can provide valuable insights into how others are choosing nonprofits for their grants. 

 

Our latest Why Giving Matters report revealed that 46% of nonprofits who received an unexpected grant from a Vanguard Charitable donor (typically a one-time grant in response to emergent needs) received an additional grant from the same donor in the future. Revisiting charities you gave to once could be an excellent choice for your long-term giving. 

 

Here are some considerations for selecting previous one-time gift recipients and seeing if they could be your next favorite charity.

 

Even after the emergency, local charities likely still need your support

 

If you gave after an emergent event to a local charity, there was something about that issue that spoke to you once. A second disaster may not have occurred since your initial gift. Yet, it's likely that the local charity you gave to is still working to address the initial issue or other issues still affecting the same community.  

 

Whether organizations are focused on long-term recovery from disaster or building up preparedness for future events, they’re likely still doing important work. Nonprofits may also be addressing existing issues that were exacerbated by an emergent event. For example, the psychological recovery process can last long after the media has stopped covering the area impacted by a disaster. 

 

If you’ve given to that organization before, you must have aligned with their approach to making a difference, and you likely still do!

 

Support an organization that regularly provides relief

 

If you typically give in response to disasters, then consider a national organization that regularly responds to emergent issues. 

 

For example, if you gave to International Rescue Committee in the past, beginning regular granting to them would mean supporting them in all their future humanitarian aid efforts. A nonprofit that responds to emergent events can be a great recipient of ongoing giving, ensuring that you’re always supporting response efforts. 

 

As Alejandra Villalobos, Associate Vice President, Philanthropy, of CARE shared, “We believe that poverty is unjust and solvable, and that together we have the power to end it. This is only possible because of donors who are willing to make significant, long-term investments in CARE’s work.”

 

Easily review all your previous grant recipients with a Vanguard Charitable account

 

Perhaps you’re now considering revisiting nonprofits you’ve previously given to, but how can you even remember what nonprofits you’ve given to in the past? 

 

When you give with a Vanguard Charitable donor-advised fund (DAF), you can review all nonprofits you’ve recommended grants to. Your granting history is all in one place within your online account. 

 

And with a Vanguard Charitable DAF, you can quickly set up recurring grants for your favorite charities. Now that you have your newly rediscovered nonprofit, you can establish a regular granting schedule that takes recommending a grant off your to-do list.

 

Are you ready to give... again? 

 

Don’t start at square one when you’re looking for a new charity to give to. You’ve likely already found a charity with a mission and values that align to your own. Even if you thought your giving to a nonprofit would be limited to a one-time grant, they could be your next favorite charity for ongoing, recurring giving. 

 

Consider adding a previous gift recipient to your regular giving list today!

If you’ve heard about private foundations opening donor-advised funds (DAFs) and wondered “Why would you need both?”, you’ve found your answer. Read on for insights into how these two giving vehicles can be a powerful combination. 

 

The basics of private foundations and donor-advised funds 

 

Typically, donors will choose between a private foundation and a DAF. Both giving vehicles allow individuals to contribute, or donate, to the account or foundation. The donated funds are committed to charitable purposes and are invested to potentially grow while being granted out. 

 

Despite their similarities, there are many variables that might make a donor-advised fund or a private foundation a better choice over the other. It all depends on what a donor is looking for in their giving vehicle. For example, a DAF is easier to establish, and donors can rely on the DAF sponsor to handle administrative requirements. Establishing a private foundation, on the other hand, is more complex and leaves the donor with all the administrative responsibilities, though they can select a board and staff to run their foundation. 

 

You can learn more about the differences between private foundations and donor-advised funds at the link below.

Can a private foundation give to a donor-advised fund? 

 

While a donor might select one giving vehicle over the other, they don’t have to. It’s easy for private foundations to add a DAF to their larger philanthropic strategy. This is because private foundations can issue grants to donor-advised funds. 

 

While there are restrictions on the types of organizations private foundations can give to, private foundations can give to public charities. As a DAF sponsor, Vanguard Charitable is a 501(c)(3) public charity. Funds contributed to a DAF from a private foundation are committed to charity and grants subsequently must go to public charities in good standing with the IRS. 

 

Reasons for adding a DAF to your philanthropic toolkit 

 

Private foundations and DAFs each have unique benefits. Adding a DAF to your philanthropic strategy, even if you already have a private foundation, increases your giving potential. 

 

We spoke with our donors who leverage both a private foundation and a DAF to support their philanthropic goals. Here are a few reasons they offered about why they added a Vanguard Charitable DAF to their giving portfolio: 

 

  • Charitable giving flexibility. With a DAF, you can grant to any 501(c)(3) public charity in good standing with the IRS. You can also set your own giving timelines. By opening a Vanguard Charitable account, you get all the flexibility of a DAF while still maintaining your private foundation. 

 

  • Low-cost, high-quality investments. Opening a Vanguard Charitable DAF gives you immediate access to a carefully curated list of high-quality investment options with solutions to fit any investing strategy. Some donors use their DAF to leverage the same investments they have at their private foundation but for a lower cost. 

 

  • Reduced costs on your philanthropy. With the industry’s lowest all-in fee, Vanguard Charitable helps you grow your philanthropy without growing your expenses. And these low fees translate to access to expert charitable guidance and account support. 

 

  • Support for complex charitable giving. Whether you’re wanting to directly contribute complex assets or looking for help with international or complex granting, you can find best-in-class support with Vanguard Charitable. 

 

Here, we’ll thoroughly cover where donor-advised funds and private foundations overlap and where they vary so you can make the best decision for your philanthropy.

 

What do donor-advised funds and private foundations have in common?

 

Both donor-advised funds and private foundations allow individuals to contribute, or donate, to the account or foundation. Funds are invested for charitable purposes and can then grow. 

 

Funds can be granted out to other charitable organizations as recommended by the advisor of the DAF or by the board of directors overseeing the private foundation. Both take a variety of assets as contributions, including illiquid assets. 

 

Both giving vehicles also allow you to give in perpetuity if you choose: advisory privileges (for DAFs) or management (for private foundations) can be passed on to the next generation or assets can be granted out to charities upon the donor’s passing.

 

The differences of donor-advised funds and private foundations

Key Takeaways

 

In the first edition of Why Giving Matters, granting and survey data revealed that a DAF empowers donors to give more to charity and to give more effectively, with these benefits only increasing over time. In this edition, we focus on how donors can use their DAF flexibly to respond to both their longstanding charitable commitments as well as supporting emergent needs. Our findings confirmed the power of a DAF—but they also revealed an effect unexpected giving has that surprised everyone. 

 

How are donors able to respond to a great variety of causes with one charitable giving vehicle? How effective is a DAF in supporting donors’ various charitable interests? Read the report now to get answers to these questions and more.

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