Do you know that charitable giving is changing? Donating money to charities and non-profits focusing on causes near and dear to your heart benefits those organizations, obviously. However, charitable giving also helps you.
You may feel good about yourself, which is always nice, but you may be able to reap tax benefits as well, depending upon how much you donate.
Charitable giving does not happen solely on an individual basis, however, and changes in funding sources are just the beginning.
With the advent of modern technology and revolutionary economic mechanisms, the climate for donations and support for non-profits, foundations, and charitable organizations are evolving.
Whether you support organizations that help shelter pets find homes, protect African wildlife, or address environmental challenges, here are six ways giving is changing.
#1]. Support for Voter-Directed Factions
Non-profits are starting to offer a variety of giving options that provide tax breaks, making it easier for populations of voters that support various causes to donate to organizations that align with those causes.
In election years, this means voters can more easily sway voting patterns by supporting those organizations with focused agendas that fit into specific political platforms held by individual candidates.
An example is the Community Foundation for Greater Atlanta, which responded to amendments to the state constitution in 2016 by setting up an education program for other non-profits.
The training was designed to show other organizations how to take stands to try to influence public opinion or offer position-neutral classes for the public.
#2]. Technology-Driven Support
Social media platforms such as Facebook are changing the nature of charitable giving. Today’s donors are interested in personalizing their gifts and testifying why a particular cause is worthy.
In addition, social networks make it quite easy to spread the word about causes and organizations and just as easy to give. Consider how Facebook allows users to set up charitable giving opportunities to celebrate special occasions such as birthdays. The only thing users have to do to donate is press “enter” on their keyboards.
#3]. Impact Investing
Investors today are increasingly interested in putting their money to work for the greater good. More and more depositors are putting their money into companies or funds with social missions, and venture capitalists are giving to causes rather than start-up corporations.
Chris Sacca is one such successful investor. A thriving investor since founding Lowercase Capital in 2010, Chris’ portfolio features more than 70 companies. In 2017, Chris was named to Forbes’ Midas List, which features the top venture capitalists in the tech industry. As successful as he is, that same year Chris decided to focus on causes close to his heart.
The nonprofits he supports include an organization that provides clean drinking water to populations in need, the American Civil Liberties Union, and The Bail Project, which pays bail for needy individuals and promotes the idea that innocence is legally presumed.
He and his wife also support philanthropies addressing environmental issues around the world and climate change. His involvement shows that one person’s efforts can create a wave of good works and positive actions.
#4]. Transparency and Donor Education
Givers today are willing to do research and educate themselves about charities’ backgrounds, administration, and usage of donations. They want to know how their funds will be used.
A variety of internet resources allows donors today to learn about organizations and make more informed choices about their giving. A great example of such an information source is Charity Navigator.
This trend means organizations must be increasingly transparent in their operations, which is ultimately a good thing for both donors as well as worthy causes that desperately need legitimate support.
#5]. Larger Donors
Predictions are that the number of larger donors will increase. Industry experts say that the top half of the top 1 percent will donate about 30 percent of total charitable giving. This trend has received much publicity, as giving by such recognizable persons as Bill Gates, Michael Bloomberg, and Warren Buffett has been cataloged and widely reported.
However, this trend could leave smaller non-profits and other charitable organizations wanting. The number of charities is growing, and they depend upon individual community support rather than big-name donors.
#6]. Humans Ultimately Want to Do Good
Despite the horrors posted on the internet as they are happening and reportage of the effects of cruelties, most people believe the human race still has points of light and there is good left in people.
Therefore, no matter what the news says, some charitable directors say people will continue to make donations, thus expressing the best qualities to be found in the human spirit. Giving to charities and non-profits that work in causes you believe in is a positive action on multiple levels.
You donate to something larger than yourself and pool your resources with others to support a greater good and possibly get a tax break. With today’s technology, though, the way charitable organizations are supported is changing. From impact investors to increased transparency and more educated donors, giving trends are evolving along with society.