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. See more about our corporate giving services in our 2018 annual report.
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