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Americans Open Their Wallets Even as They Are Unsure About the Economy

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Presentation on theme: "Americans Open Their Wallets Even as They Are Unsure About the Economy"— Presentation transcript:

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2 Americans Open Their Wallets Even as They Are Unsure About the Economy
Giving USA reported total 2017 charitable donations of $410 billion, or a 5.1% increase from 2016’s total of $ billion. Adjusted for inflation, the net increase was 3%. The Nonprofit Fundraising Study from the Nonprofit Research Collaborative reported 58% of participating nonprofits had increased receipts for the January–July 2018 period. For all of 2018, the Fundraising Effectiveness Project found Q donations were % of 2017’s total, but total donors was 95.48% of and the donor retention rate decreased 6.3%, to 44.5% overall.

3 2018 Tax Cut Act Reduces Pool of Donors
According to the Tax Policy Center, with fewer households itemizing deductions because of the Tax Cuts and Jobs Act, it is likely a smaller group of mega-donors, who still benefit from itemizing deductions, will be the source of more charitable giving. The Tax Policy Center estimates the number of itemizers decreased from 46 million for the 2017 tax year to 19 million for 2018, with even those earning as much as $315,000, decreasing from 75% to approximately 34%. The US remained the top country during 2017 in terms of the total number of Ultra-High-Net-Worth (UHNW) individuals and their total wealth, or $9.85 trillion, but 7 countries exceeded the US’s 12.9% YOY increase, with China first, at +32.8%.

4 Individuals Will Be The Largest Group of Givers During 2019 and 2020
The Chronicle of Philanthropy forecasts a 3.4% increase in total giving for 2019, and 4.1% for 2020, based on an above-average increase in the S&P 500 and increases in personal income and the GDP compared to previous years. An uneven economic-growth scenario would have less effect on giving from high-net-worth individuals and a flat-growth scenario could increase giving to education, but an economic downturn would reduce wealth and, thus, charitable giving. Individuals are forecasted to be the largest source of total giving for 2019 and 2020, or 66.0% and 65.5%, respectively, while foundations would increase slightly, from 18.9% to 19.3%. Corporations, 5.0%, and bequests, 10.2%, would remain unchanged.

5 Which Nonprofits Receive the Most Support
In Blackbaud Institute’s Charitable Giving Report of 9,029 nonprofit organizations, giving to small organizations (less than $1 million) decreased 2.3%; medium organizations ($1M–$10M), +2.0%; and large organizations (more than $10M), +2.3%. Although total giving increased 1.5%, online giving increased 8.5% and small organizations had the largest share, or 13.4%, with medium organizations, 7.8%, and large organizations, 4.0%. The average age of donors was 62 and the median donation for gifts of greater than $1,000 was $2,049 and for those less than $1,000, $20. The average online donation was $147.

6 More Organizations Embracing Digital Fundraising
The 2018 Digital Fundraising Report from Bentz Whaley Flessner found just 10% of organizations are able to create a pipeline of gift prospects from the digital channel, but 73% are realizing results and planning to invest more in digital through 2020. fundraising, at 60%, was the #1 method for generating digital fundraising results; followed by, a giving day or #GivingTuesday strategy, 51%; digital fundraising, 49%; a paid social media strategy, 36%; and crowdfunding, 33%. Unsurprisingly, Facebook (95%) and Instagram (63%) were where most paid promotional fundraising content appeared, and the most popular crowdfunding platforms were ScaleFunder, TeamRaiser, GiveCampus, EveryDayHero and Facebook Fundraisers.

7 Corporations and Their Employees’ Participate in Giving
In its latest report, Giving in Numbers 2018, CECP, a CEO-led coalition, reported 56% of companies in the study increased total giving from to 2017, or median totals of $21.6 million and $24.7 million, respectively. Although disaster relief had the largest increase from 2015 and 2017 in median cash giving, or 306%, the median amount of $623,994 was just 23% of the largest program’s median amount, or Health & Human Services, at $2.7 million. During 2017, 93% of all companies in the study said they had an employee-volunteer program and the three most successful programs were company-wide day of service, 85%; dollars for doers, 59%; and paid-release time, 58%.

8 Advertising Strategies
Retailers/advertisers can generate considerable brand awareness and goodwill if they use some portion of their TV advertising to promote giving and challenge other retailers and companies to join them in supporting local organizations and people’s needs. Your station can serve as a catalyst to help smaller, local nonprofits without the budgets and staffs to utilize the digital channel fully by asking the station’s IT and digital marketing personnel and/or engage local digital marketing agencies to volunteer their time. Create teams of on-air news personalities and the production crew for a friendly competition, with each team promoting the work and need of a local nonprofit/charity on-air and via community events during a Giving Week promotion.

9 New Media Strategies Companies with employee-volunteer or other charitable programs can ask employees to record short videos about their experiences and why they participate and encouraging others to become more involved in the local community. Local retailers and companies can dedicate a portion of their regular social media posts to promote local nonprofits and invite directors, managers and volunteers to record short videos announcing new giving campaigns or other relevant efforts. Another way local companies can “donate” some of their regular social media posts is to feature specific volunteering opportunities in the community, with short videos explaining the work, the time involved and who will benefit.

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