In 2018, individuals, families and companies contributed $427 billion to charities. At a recent Nonprofit Connect event in Kansas City, Dr. Patrick Rooney from Indiana University’s Lilly Family School of Philanthropy presented the Giving USA Annual Report of Philanthropy for the year of 2018. The Giving USA report shows how tax changes in 2017 created three trends in giving: Continued popularity of donor-advised funds, bunching as a charitable tax strategy and increased corporate charitable giving.
Because individuals and families are having to rethink strategies surrounding their charitable giving, Dr. Rooney predicts donor-advised funds will continue to be the fastest-growing charitable giving tool. Donor-advised funds can serve as the perfect vehicle to organize and maximize charitable giving.
Bunching, a charitable tax strategy paired with donor-advised funds, continues to be a popular approach for donors, says Dr. Rooney. Bunching allows donors to continue supporting their favorite charities while still retaining the tax benefits by contributing multiple years’ worth of donations to a donor-advised fund in a single calendar year.
The report also found charitable giving by corporations increased by 5% from 2017, with more than $20 billion in charitable contributions from companies. At the Greater Kansas City Community Foundation, we work with companies of all sizes who want to cultivate a corporate culture of giving. In 2018, we helped companies give $25 million to nonprofits across the country.
If you are interested in contributing to the growth in charitable giving, consider establishing a donor-advised fund to maximize and organize your giving. Contact us at firstname.lastname@example.org or 816.842.0944 with any questions.
Authored by: Ellie Light, Communications Intern