Spontaneous DAF contributions ignite more giving

A new study from Vanguard Charitable has shown that philanthropic investors using donor-advised funds for both planned and responsive giving are significantly increasing their contributions.

The report, which analyzes more than a decade of donor activity across more than 32,000 DAF accounts, shows a notable uptick in philanthropic giving.

Vanguard Charitable donors who allocate funds in response to unexpected events like natural disasters or humanitarian crises contribute 39 percent more than those who strictly engage in planned, ongoing giving, the report found. Furthermore, these spontaneous contributions appear to inspire an increase in regular giving as well, with a 24 percent rise in planned donations.

"It's so inspiring to see our donors' generosity in supporting the causes and charities they care about most," Rebecca Moffett, president of Vanguard Charitable, said in a statement.

Moffett highlighted the role of DAFs in fostering both immediate and long-term support, emphasizing how that “flexibility, combined with our quality investments and low-fee structure, enables more dollars to go to nonprofits in need."

The flexibility of DAFs allows donors to respond swiftly to urgent needs while maintaining support for ongoing commitments. With that approach, charitable investors can meet immediate needs for aid, which the research said boosts their giving overall.

In one key finding, three-quarters of donors in Vanguard Charitable’s survey research said an increase in their unexpected giving increased their total contributions without taking away from their planned philanthropic donations.

Moreover, 46 percent of nonprofits that received an unexpected grant from a Vanguard Charitable donor became repeat beneficiaries as they received another donation from the same donor. More than 72 percent of donors said they were inspired by various types of events to make impromptu donations.

While planned giving at Vanguard Charitable grew by 17 percent annually over the past decade, the nonprofit said responsive giving also surged by 24 percent each year.