Smaller pool, bigger fish
According to 2020 statistics released in June 2021 as part of the Giving USA report, Americans’ bequests to charity totaled nearly $42 billion last year. That’s a tremendous amount of charitable giving flowing to community organizations from donors after they die. Moreover, it is a fraction of the $324 billion Giving USA reports was given to charities in 2020 by living individuals.
So, while planned giving strategies remain a “must have,” they can’t be pursued at the expense of your organization’s annual giving efforts that keep the lights on and allow you to expand your programs to meet increasing needs. Your organization needs both strategies to work in tandem, placing the donor solidly at the center of your efforts.
Coordinated cultivation is particularly important in light of the reality that although dollars flowing into charitable organizations are high, they are coming from a smaller number of donors. In a just-released study conducted by Indiana University’s Lilly Family School of Philanthropy, researchers reported that only half of households in the United States give to charity at all--and those are 2018 figures likely to dip further when the every-other-year study is published again. For reference, in 2000, this study found that 66% of households gave to at least one charity. That's a big drop.
Bigger giving starts now: Tips for encouraging lifetime charitable gifts
Indeed, despite the smaller pool of donors, the numbers are getting bigger. Even the financial services sector is taking note.
As you work with your donors, not only should you encourage donors to build philanthropic components into their estate plans for distribution to your organization after death, but you should also consider helping your donors make meaningful gifts to support your mission during their lifetimes.
Here are three selling points for encouraging your donors to consider “giving while living” as part of their plans for supporting your mission:
Donors get to see the results of their gifts and have an opportunity to get involved, whether as a volunteer, board member, or simply an observer at a site visit to your organization.
Donors can involve their children and grandchildren in making gifts to your organization.
Donors are eligible for an income tax deduction for lifetime charitable gifts, and the gifted assets are no longer subject to future estate taxes.
Please contact the team at the community foundation to explore ways we can help you increase your donors' financial support through a designated fund or other collaborative vehicle available through the foundation.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.