When presenng the audit results to various nonprot clients, I usually get asked what the trends are inthe nonprot world for the next year or so, and invariably the topic of conversaon turns to the ebb andows of charitable giving and how the economic recession has aected this giving. The next queson onnonprot board’s minds is – Are we in a charitable giving crisis?My response generally is no – we aren’t in a crisis, although businesses and individuals hit hardest bythe economy’s slide have shied charitable giving paerns to long-term pledges and gi commitments,rather than ceasing to give altogether.Benchmarking studies performed by numerous philanthropic associaons reveal that the most eecvefundraisers use a variety of well-rounded programs and acvies to raise money, shaering the myth thatbig cket galas, golf tournaments, and telethons are the only way to aract donors. The most successfulphilanthropic programs have a sustained emphasis on building relaonships and culvang major gi do-nors. Long term planned giving, such as charitable remainder trusts and bequests giving become morepopular as opposed to one me cash gis.An interesng but not well known fact is that charitable giving actually increased during the Great De-pression in the United States. The data indicates that from 1931-1933 there was a signicant drop ingiving, followed by a slow but steady increase from 1934-1941 (thereaer followed by a sharp increasefrom 1941-1948). Overall, giving trended erracally upward during the Depression due to in large part toplanned giving as individual’s deferred income rose at a faster rate than current giving declined. Be-
ARE WE IN A CHARITABLE GIVING CRISIS ?
Jeff Holt, CPA - Partner, Assurance & Advisory Practice