Predictions for Giving in 2011
It’s January 3, 2011, and it’s too early to tell what just occurred in giving for 2010. By all accounts, it was a mixed bag.
Some charities are still feeling the sting, while others are beginning to be cautiously optimistic. What does 2011 hold? Michael Fischer in Advisor One makes these predictions:
1. Donor Advised Funds will continue to grow as a tool for giving. Donor advised funds outnumber private foundations by 2 to 1. They should make significant gains in assets, grants, and contributions. The biggest reason for their growth? Their simple and they give anonymity. Even for wealthy families who used to set up private foundations, they’d much rather set up a donor advised fund and keep their privacy.
2. Volunteerism will continue to rise. As the Boomers age, they’ll be seeking meaningful ways to “give back.” Some, instead of financial contributions, will give their time as a means of supporting an organization. As unemployment continues to hover in the 10% range, some will fill their time with volunteer roles. One implication for the non profit—it’s a good idea to have a volunteer manual. Spell out roles and responsibilities clearly.
3. Women and giving. As Boomers age, one fact of life is that husbands pass first leaving their wives with the wealth and giving decisions. How charities and advisors cultivate women, their financial acumen and their passions in giving will be key.
4. Online giving of all shapes and sizes continues to grow. There continues to be a rise in small online giving opportunities. For many the ease of online giving is an equal factor in its growth.
The overall message from Fischer? I think the message is the same I’ve been writing about for some time. Things are changing. Giving is changing. It’s online, it’s investor oriented, it’s about making it simple for the donor, and it’s helping them see the value of their giving. There’s lots of competition out there for the giving dollar, and the wise charity is making adjustments.