Interesting trends usually come from external forces, so here’s three that we’re watching.
1. The aging of America and a surge in planned giving. More than 10,000 people turn 73 every day in the US, and it’s quite possible that gifts in wills and trusts (commonly called “bequests” and “planned giving”) will fuel many charities for the next few decades. There’s more than $30 trillion that will be passed on by aging baby boomers in the next 20 years. This may be the biggest opportunity for philanthropy in the history of the world. Already, more than $400 million has been committed through FreeWill in 2019.
2. Tax changes are leading to a search for “smart giving.” In 2017, 30% of taxpayers itemized deductions. With the new tax law, that number is estimated to shrink to only 10%. Donors are hunting for smart ways to give.We just published a report on how Qualified Charitable Distributions from IRA accounts have almost doubled in frequency in the last year. Stock gifts, donor advised funds, and other more complex giving is likely to see a sharp uptick as well, and not just from wealthier folks.
3. Innovation from campaigns. Political campaigns, particularly presidential campaigns, represent the bleeding edge of innovation in small-dollar fundraising. Especially right now, as more than 20 candidates vie for the Democratic presidential nomination, we can expect to see an incredible level of creativity, as these campaigns fight to remain relevant and afloat (because they’re spending lots and lots of money on ads, field organizers, rent for campaign offices, and more ads.) In particular, we recommend these campaigns as ones to watch, not necessarily for their policy proposals, but for how they go about raising money from their supporters: Elizabeth Warren, Pete Buttigieg, Cory Booker, and Bernie Sanders.
Read full article from Forbes.