Building and Preserving
Giving USA 2023 report
It was a very good year!
Source: Giving USA
Year-End Giving
How much is given in the final quarter?
Estimated Timing of Giving in 2023 (based on trends)
January thru September
October, November & December
Source: Giving USA 2023, MR Benchworks, Nonprofit Source
Year-End Giving
How much is given in the final quarter?
Estimated Timing of Giving in 2023 (based on trends)
January thru September
October & November
December 1-28
December 29-31
Source: Giving USA 2023, MR Benchworks, Nonprofit Source
Look what area shot up?
2023 Charitable Giving by Source
HOW much to give?
It’s a very personal decision
Needs to be addressed before jumping into an “ask”
❖ Good fundraisers will help donors understand the need to develop a giving strategy.
HOW much to give?
It’s a very personal decision
How much is enough, but not too much, to leave to family, while also giving to charity?
❖ Donors need to consider what they have to give in the areas of time, talent and treasure.
❖ Encourage them to write down, specifically, what they can realistically give.
❖ Help them be ambitious, but beware of biting off more than they can chew.
HOW much to give?
It’s a very personal decision
Deeply personal decision
❖ Try to include family in all major gifting decisions, including spouses and next generation
❖ Understand what “stage” of philanthropic giving a donor is in:
❖ Early stage: reactive, feels urgent and immediate, feels good.
❖ Middle stage: strategic, outcome-oriented, targeting areas of personal importance
❖ Later stage: long-term impact, generational change, legacy.
When to give?
It’s a very personal decision
Is it better to make charitable gifts during lifetime or wait until after death?
❖ Fundraisers should help understand the benefits of lifetime giving…
❖ Tax breaks from QCDs, appreciated stock, deductions
❖ Joy of seeing gifts in action during lifetime
❖ …while also focusing on estate giving
❖ Transformational amounts
❖ Legacy of support after passing
Which Charities to Give to?
Philanthropy expresses the following:
❖ Values
❖ Interests
❖ Mission
It’s so much more than a transaction.
Which Charities to Give to?
Resources for vetting charities
❖ Local knowledge
❖ Centers of Influence, Trusted Advisors
❖ Tours, attend a program
❖ Meet the CEO/Board
❖ Volunteer
Which Charities to Give to?
Resources for vetting charities, especially not local ones
❖ Independent Reviews
https://www.guidestar.org/ https://www.charitynavigator.org/
❖ Third Parties
Provides an unbiased perspective, serving as a reliable source of information for potential customers and clients.
Which Charities to Give to?
Factors to consider when vetting charities:
✓ Mission and Impact
✓ Clear Goals
✓ Transparency and Accountability
✓ Financial Health
✓ Efficiency
✓ Track Record
✓ Leadership and Governance
✓ Programs and Activities
✓ Evaluation and Learning
✓ Community Engagement
✓ Long-term Sustainability
✓ Alignment and Ethical Standards
Which Charities to Give to?
❖ Annual gifts
Usually to support overhead, annual operating expenses
Let’s define what overhead means to you:
• Budgeted items
• Programs
• Salaries
• Mission work
❖ Restricted vs. Unrestricted Gifts
❖ Endowment
Which Charities to Give to?
Why do Donors Wait til Year-end?
A lot of impact could be made during the year. Sometimes timing is essential to giving for mission-related needs.
• Year-end market rally – Let the money grow in the investment accounts to give away more.
• Wait to find out capital gains/losses.
• Put it off. Donors are human after all.
• Some have discovered “bunching”
• www.irs.gov/credits-and-deductions-for-individuals
• DAFs – spread out giving
(but planning could start now!)
Which Charitable Planning Tools to Use?
How to give is part of the strategy
Current Giving
❖ Qualified Charitable Distributions
❖ Appreciated Stock
❖ Charitable Lead Trusts
Which Charitable Planning Tools to Use?
How to give is part of the strategy
Future Giving
❖ Donor Advised Funds
❖ Charitable remainder trusts
❖ Life estates
❖ Anonymous client example
Questions?