Giving Tuesday officially kicks off the end-of-year giving in the U.S, and charitable giving has remained high in 2022 even as economic uncertainty grew, according to Vanguard Charitable.
During the calendar year, contributors using the donor-advised fund run by Vanguard Charitable have granted out US$1.55 billion, a 4% increase compared to the same period last year. The average grant size is also up 4%.
“A donor-advised fund enables donors to make a sustained commitment to charity while they receive an immediate tax deduction,” says Rebecca Moffett, president of Vanguard Charitable. “This tool plays a really important role during times of economic challenges because donors have made that upfront commitment to charity, and they can use those dollars really effectively in granting out.”
About 32% of the grants made out of Vanguard’s donor-advised fund went to human services, followed by education (26%), religion (13%) and health (10%.)
Planning Ahead Pays Off
On average, Americans who included charitable giving in their annual budget gave nearly four times more than those who did not budget over the past 12 months, according to a recent survey conducted by Harris Poll for Vanguard Charitable. Those who had a budget donated an average US$2,268, compared to US$626 for those who did not set aside funds for charitable giving.
“Budgeting for charitable giving is an intentional way that individuals can maximize their impact both today and in the future,” Moffett says.
Approximately 31% of the annual giving in the U.S. occurs in the month of December, according to data from Giving USA, a public service initiative.
Giving Tuesday, the Tuesday after Thanksgiving in the U.S., is a generosity movement to encourage people and organizations to transform their community and the world, first launched in 2012.
Though end-of-year giving should be factored in donors’ budgets for the whole year, says
national director of philanthropic advisory services at Foundation Source, which provides grants management services for private foundations.
“We certainly recommend that you have a budget in mind for end-of-year giving. It’s true whether you’re an individual who does charitable giving or a foundation,” she says.
Even as changing needs might arise, “it’s important to align end-of-year giving to the mission-driven work that you do throughout the remainder of the year,” Wong says. “That can help inform the choices you make at this more pressured time to give.”
For wealthy donors, the holiday season creates a great opportunity to align family values around a charitable cause or causes, says Peter J. Klein, co-founder and chief investment office of ALINE Wealth, a New York-based wealth management firm.
“The family members can discuss their passions, what organizations they want to volunteer [at] and give money to,” he says. “That’s going to keep them focused on charitable giving. There’s more to wealth than just buying a new car or a fancy new house: their responsibilities to give.”