Does High Inflation Make You Fear for Your Fundraising Efforts?

There’s no doubt. Nonprofit organizations face fundraising challenges that they have not seen for decades. Nevertheless, opportunities remain even as the latest economic news has not been good:

Consumer Sentiment: The University of Michigan Consumer Sentiment Index for March 2022 reveals that consumer confidence has plummeted 25.5 percentage points compared with March 2021. At 59.4 percent, the consumer sentiment index now stands at the lowest point in two decades. This is not surprising given economic conditions. Unfortunately, it means people will now be especially careful with their personal finances.

Uncomfortable Inflation: Treasury Secretary Janet Yellen predicts another year of “very uncomfortably high” inflation. In March 2022, the annualized inflation rate stands at 7.9 percent, a 40-year high. What’s even more troubling is that by calculating the Consumer Price Index now, using the same formula used in 1980, the inflation rate would stand at over 15 percent! The following chart from Shadow Stats illustrates this point:

Consumers Face Increased Expenses: The average American household is facing nearly $300 in higher monthly expenses due to inflation, according to Moody Analytics. Households in rural areas may face even greater monthly costs as fuel prices rise. This will likely negatively affect current philanthropic giving. While individual charitable giving usually comes in around two percent of disposable income, according to Giving USA, we’re now seeing the erosion of household disposable income.

Inflation May Not be Our Only Problem: Inflation is not our only reason for economic concern. Former US Treasury Secretary Lawrence Summers has not just expressed concern about inflation, he’s worried that US Federal Reserve policies dealing with inflation could lead the economy into a recession.

Despite all of the bad economic news lately, we’re fortunate that not all of the news is bad:

Get Two FREE Offers to Mark My Return

I’m back!

It’s been several months since I’ve written a blog post. I’ve been tending to some health issues during that time. I’ll explain more in a moment. First, I want to mark the occasion of my return to blogging with two special, FREE offers for you:

“On Giving” – Skystone Partners Webcast:

I invite you to join me for my conversation with Elizabeth Kohler Knuppel, CEO of Skystone Partners, as part of her FREE “On Giving” webcast series. We’ll discuss planned giving trends as well as what’s changed and what’s stayed the same over time, particularly in this pandemic era. We’ll also discuss the vital but often overlooked role that people of color and women play in successful planned giving. During the live program, you’ll have an opportunity to ask questions.

Join us on Tuesday, March 8, 2022, at 12:00 pm (EST). For more information and to register for FREE, click here now.

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Philanthropic Trends for 2022 that Nonprofits Should Know:

Recently, I had a conversation with Mary Jane Bobyock, CFA, Managing Director, Nonprofit Advisory Team, Institutional Group at SEI. We looked at the likely philanthropic trends that nonprofits will see in 2022. You can read the full article for FREE by clicking here.

We looked at several questions including: