As 2016 comes to an end, many charities and nonprofits are preparing for their year-end campaign or planning a new strategy for next year. There is an abundance of statistics and data about the growth of giving, both locally and nationally. From these stats, we are able to predict what the new year’s philanthropic giving will look like. Take a look at these 2017 predictions:
Individuals/Households Becoming More Generous
Individual and household giving is predicted to increase in 2017, and at a historically high rate. Giving for the year of 2017 is expected to beat out the 40-year growth average, at about a 3.8% increase. So what exactly is causing such a significant increase in individual/household giving? The factors contributing to this include:
Individual and household giving consists of donations from people who claim their charitable donations on income taxes, and those who do not (itemizers and non-itemizers). The rate of increased giving between these two vary slightly, with itemizers expected to give slightly more.
From this, we can see a growing number of people spending more time and resources on philanthropic giving next year. Technology, a younger generation and the ability to give resources are all impacting growth positively in individual and household giving. So what can you do to be a part of this? Start giving, of course!
Donate your resources directly to homeless shelters (or any other giving opportunity that you are passionate about) or volunteer if you can’t give anything of monetary value. Encourage your family, friends and coworkers to join and make an outing out of it. Keep in mind that places like food banks may appreciate cash even more than canned goods during the holiday season.
Increased Giving from Foundations
Charitable giving from foundations has been increasing at a speedy rate. In 2016, foundation giving increased by 5.7% and in 2017 it’s expected to increase 6.4%. These projections beat out the historical ten year average rate of growth for foundation giving. Factors that are influencing this rate of growth are: increases in the S&P 500 compared to previous years, and average projected growth in the GDP compared to previous years.
With the growth in giving from foundations, we can begin to see the bigger picture. Individuals contribute to the largest portion of these revenues, and if this continues, foundation giving is expected to see the greatest increase in philanthropic giving.
How you can contribute? Start donating to be a part of the bigger picture. Begin by researching foundations which contribute to causes that really speak to you. Make sure the foundation is credible when you are researching so you can avoid any potential scams. Two-thirds of people who make donations do no research before giving! Once you find one, start donating your time or resources.
Corporations Still in Giving Mode
Following the trend, overall giving from corporations will increase in 2017. Corporate philanthropy still proves to be a successful marketing tool for many corporations. The expected increase for corporate giving will be around 4.7%. In total, corporations make up about 5% of all charitable giving, and this number continues to grow. More and more companies are offering their employees opportunities to give back, and this will continue to increase in the new year.
The boost in corporate giving means we will continue to see companies implementing corporate philanthropy programs. We will notice a lot of companies investing in corporate philanthropy software, an increasingly popular choice in the world of CSR. A corporate giving software makes it easier for employees to get involved and leads to high participation levels within companies.
How you can contribute to the big picture? Look into getting a CSR software for your company and be a part of the movement. Start encouraging employees and coworkers to take time to donate/volunteer with one another. If your company doesn’t already do so, look into getting paid volunteer hours for employees. The list goes on and on!
Philanthropic giving has a bright year ahead, and it will only keep growing. Individuals, foundations and companies are all taking steps to give back in one way or another. Be sure to take initiative and join the movement by giving back next year, and other years to come.