Philanthropy Trends: Record Giving Amid Economic Uncertainty

State of Charitable Giving

• 💡 Despite economic uncertainties, charitable giving hit an all-time record of $590 billion this year.
• 📈 Corporate philanthropy is at its highest in 40 years, driven by its strategic business benefits.
• 💰 Consumers continue to want to give, as evidenced by a 13% year-over-year increase in Giving Tuesday donations.

Corporate Giving as a Business Strategy

• 🎯 Companies increasingly view giving back as a business strategy to drive sales, improve customer loyalty, and increase brand awareness.
• 🛍️ Approximately 50% of young adults prefer brands that give back, and nearly 60% of consumers will pay more for products that support good causes.
• 🤝 This shift is leading companies to re-engage with philanthropic efforts after a pullback following tax structure changes in 2017.

Individual Giving and Donor Advised Funds

• 📊 Individual giving is also on the rise, complementing the growth in corporate contributions.
• 📈 Donor-advised funds continue to grow, with some seeing increases of 10-20% year-over-year, indicating a significant shift among wealthy donors.

Employee Matching and Consumer Programs

• 👥 Employee matching gift programs are seeing a resurgence, with about 70% of employees wanting to work for companies that offer them.
• 🛒 Companies are also implementing matching gifts with consumer programs, such as those seen with Planet Fitness and Kohl's, making consumer dollars go further.

Emerging Philanthropic Vehicles

• ⚠️ A new model, referred to as "Trump accounts" or "Invest in America," allows direct donations to children, potentially through government vehicles.
• ❓ While this model is still being understood, it raises questions about its potential impact on traditional charities, though established organizations like the Boys and Girls Clubs have a long history and strong strategies.