Did you or are you about to support a charity in 2013? Nearly 80% of all charitable giving comes from donors over the age of 49. America showers charities, on average, with 30% of all annual giving throughout the month and donates 10-20% of the year's total charitable revenue on December 30 and 31 as families and individuals implement tax strategies and engage planning for the year ahead. December giving is critical for the health of America's system of non-profit helping and advocacy organizations.
Each charity's stability rises and falls on our financial decisions which can be impacted by tax policy and economic trends. The economy is a strong indicator of overall philanthropy. Forbes magazine indicates that tax advantages, for incomes over $300,000, have improved since the late 80's yet annual giving remains lower than it was before the "Great Recession." Corporate giving ebbs and flows. Foundations and individuals increased their giving in 2013. Overall charitable donations have improved slightly, year over year, for the past four years. In 2013 Americans gave 335.17 billion dollars or 2% of America's GDP(Gross Domestic Product).
Individual donations from people like you and me support the foundation of charities by generating 70% of all charitable income annually. What prompts us to give? A new study on giving demographics and trends finds that older Americans (49 and up) are likely to respond to an appeal received in the mail. Boomers were just as motivated by fundraising drives at work or options to give online. 1/3 of older Americans gave in memory of someone or as a tribute. Most of us donate non cash goods to charity during the year. Those who give money split it between local/social organizations and religious contributions. If you're over 68 years of age you probably give your time (in a role as volunteer) as well as your money. On average older Americans give more than $1,000 to charity each year.
If you're new to charitable giving the National Philanthropic Trust has a you tube channel and a series of short videos overviewing charitable donations step by step as well as more specialized discussions. If you're interested in how well a charity uses your donations the Charity Navigator offers a broad range of articles about giving as well as graded analysis of every registered charity. This year they offer a Holiday Giving guide. With so many platforms for giving it's easy to support your charity of choice. If you decide to donate to charity for the first time this year you'll join approximately 88% of U.S. households who already incorporate giving into their annual budget. Globally, the United States ranks second in numbers of people giving money to charity and first in volunteerism.
Giving is a characteristic of our American spirit and charitable gifts come from all economic levels. If you give throughout the year but haven't yet planned for a recurring year end gift Jennifer Gilmore, executive director of Feeding America San Diego encourages you to do so , "Most of us are fascinated by newspaper reports of a wealthy individual donating millions of dollars to her favorite charitable organization...," she writes, "But sometimes that admiration for such large gifts can leave the rest of us feeling intimidated when we pull out our own checkbooks to write a donation to our favorite charity. Will our check for $10, or maybe even less, really help anything? Do such small gifts really help charitable organizations accomplish much?" The DMA (Direct Marketing Association) posted a similar discussion at their blog stating that charities couldn't thrive on sensational one time donations. Their vitality relies on the smaller charity of many donors. "The point is that giving— regardless of the amount or the schedule— is always impactful. Your donations always make a difference...Know that in your own way, by making a year-end contribution to your favorite charities, you’re helping just as much [with a modest gift], if not more."
As we move through Winter celebrations, America's charities are hard at work because the final days of December are the first days they can accurately evaluate stability in the year to come. The gifts we've exchanged with family and friends may already be integrated into our lives but charities are still anticipating America's generous financial surprises. Year end giving lays the foundation for America's charities and supports the vast network of services, advocacy, arts, and causes that make our nation strong.
