An increase in charitable giving is on the horizon.
That's the forecast from a recent recent report by Indiana University's Lilly Family School of Philanthropy. According to the report, charitable giving is expected to grow by nearly 5% per year in 2015 and again in 2016.
According to Marts & Lundy, the report "predicts changes in year-to-year growth rates for philanthropic giving for the years 2015 and 2016, including overall U.S. giving and giving by individuals/ households, foundations, estates and corporations."
Other important findings from "The Philanthropy Outlook" report include:
- Contributions from individuals, households, estates, corporations, and foundations are all projected to increase in over the next 18-24 months.
- Individual giving is expected to increase by 4.4% in 2015 and by 4.1% in 2016.
- Foundation giving is projected to rise by 7.2% in 2015 and by 6.7% in 2016.
- Estate giving is predicted to increase by 2.7% in 2015 and by 6.3% in 2016.
- Corporate giving is expected to grow by 6.0% in 2015 and by 4.8% in 2016.
The forecast outlines a significant projected year-over-year increase in charitable donations. During and immediately following the Great Recession, charitable giving hovered around a measly 3%. However, as the overall U.S. economy improved, so has charitable giving.
Nonprofit donations are a significant force in the American economy. According to Charity Navigator, charitable giving topped $335 billion in 2013. (Yes, that's billion with a "B".) This means that charitable donations now make up 2% of the entire United States gross domestic product (GDP).
How can your nonprofit take advantage of the predicted influx of donations? By ensuring that your organization is ready to make the most of charitable gifts.
- Consolidate all departments & point solutions onto a single database.
- Put processes in place now to capture and aggregate incoming data.
- Prioritize relationships with your existing and potential donors.
Donations are coming. Is your nonprofit ready?