How Unexpected Events Affect Charity Donors' Giving: Vanguard Charitable

A variety of drivers prompt Vanguard Charitable donors to make an unexpected gift:

• Natural disaster: 61%
• Humanitarian crisis: 54%
• New solicitation: 32%
• Request from family/friends: 30%
• Other current events: 19%
• Economic downturn: 9%
• Medical diagnosis: 7%

Seven in 10 donors identified two or more types of events they said that inspired their unexpected giving, suggesting that donors respond to a variety of prompts for giving.

Researchers also found that Vanguard Charitable account holders who use their DAF for unexpected grants gave 39% more than those who use their DAF only for expected, ongoing giving. Not only that, donors’ unexpected, responsive giving is an addition to their expected giving, resulting in a boost to their total giving.

Researchers further found that more than half of the 39% increase in total giving comes from a rise in expected, ongoing giving. This suggests that unexpected giving encourages donors to both broaden their philanthropy and increase engagement to their usual charitable causes.

According to the research findings, 46% of nonprofits that received an unexpected grant from a Vanguard Charitable account holder will receive a second grant from the same donor in the future. In other words, a grant that is a response in the moment can be the beginning of a long-term relationship between a donor and a nonprofit.

What’s behind the shift in giving after an unexpected grant? Vanguard Charitable suggested that leaning on their DAF for their first unexpected grant encourages donors to consider what else they may be able to accomplish with this giving vehicle.

Some donors told researchers that they now budget for unexpected occurrences. Others said they found that an unexpected grant opened their eyes to a new charitable cause or organization, which they then included in their expected giving portfolio.