Crosscurrents in Philanthropy
Susan Raymond, managing director of research, evaluation and strategic planning at Changing Our World, predicted that the globalization of corporate operations could prompt many businesses to increase the amount of corporate giving they do overseas, which may cause cutbacks in domestic giving. No figures were given.
If philanthropic giving by corporations declines in the coming years, charities may be able to offset resulting losses by taking advantage of another growing trend; increasing sophisticated marketing deals between charities and corporations, said Michael P. Hoffman, chairman of Changing Our World. No figures were given.
Meanwhile giving totaled $203Billion in 2000 of which 83% was from individuals. But the end result was that figure was relatively flat as compared to the previous year. See my FI Space article, “Giving in 2003 Was Flat”
Shouldn’t this figure be increasing each year due to the huge transfer of wealth that is occurring? It is estimated that $6 Trillion will transfer to charities in the next 50 years. Say that it starts slowly, so that only $50 billion will transfer during the 10 years from2000 to 2010. And that trend starts slowly so that only about $2 to $4 billion transferred in the year 2000.
From 1999 to 2000, The Chronicle of Philanthropy showed that just in Donor Advised Funds, total assets went from $7.5 Billion in 1999 to $11.3 Billion in 2000, a gain of $3.8 Billion. It went in but donations only increased $400 million. It is there, but not hardly going to charities, yet.
Corporate changes may be a wash, if the American Cancer Society works with corporations; offering them as much as they get back in return.
In the private sector, where most of the fund raising occurs, (83%), plans like Donor Advised Funds are holding the transfer of wealth. We must learn to tap these funds.