According to the Giving USA Annual Report of Philanthropy, individuals, families and companies contributed $427 billion to charities in 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, trends show that donor-advised funds will likely 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. 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 Greater Horizons, 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 866.719.7886 with any questions.
Authored by: Ellie Light, Communications Intern