When it comes to philanthropy, I have some excellent news to share.
In 2017 and 2018, charitable giving will grow faster than the annualized average for the past ten years, according to a new report researched by the Indiana University Lilly Family School of Philanthropy and presented by Marts & Lundy. Based on careful economic modeling, the new study supports the hopeful assessment I made at the close of last year.
The report predicts that overall giving will increase by 3.6 percent in 2017 and 3.8 percent in 2018, when looking at inflation-adjusted dollars.
Amir Pasic, PhD, the Eugene R. Tempel Dean of the School of Philanthropy, says:
Continued growth in the overall economy will lead to a rise in philanthropic giving this year and next. Our research indicates that all types of donors — individuals, foundations, corporations and estates — are likely to increase their giving in each of the next two years. Nonprofit organizations and the people they serve can find encouragement in the anticipated expansion of giving.”
While the report predicts 2017 and 2018 giving will exceed the most recent ten-year annualized average increase in giving of 0.5 percent, the average rate of growth will be below the most recent 25-year (4.4 percent) and 40-year (4.9 percent) annualized averages. So, while the forecast is definitely good, it’s not necessarily great.
Three of the leading economic factors that will influence the rate of growth in charitable giving are:
- Stock value growth.
- Gross Domestic Product growth.
- Household Income growth.
All three of those areas are likely to increase over the next two years. In turn, this will result in an increase of giving across all donor types:
Michael Rosen Says... 