For Immediate Release
Contact: Sharon Bond
847/375-4836
Outlook promising for Christmas philanthropy, says Giving Institute
Donate wisely
as end-of-year approaches, experts advise
Glenview, Ill. (December 13,
2006) – As the economy goes, so goes philanthropy, and 2006 should
be a good year for charities as they send out their annual end-of-year
appeals, according to experts at the Giving Institute: Leading Consultants
to Non-Profits.
“Giving closely follows the
economy, and indicators including the stock market should bode well
for those groups that plan their big donation pushes at this time of
year,” said Giving Institute Chair George C. Ruotolo Jr., CFRE.
While there have been no empirical
studies showing that donations are highest in the fourth quarter, the
Institute, parent organization of Giving USA FoundationTM,
notes that many charities use the holidays – and their associated
feelings of good cheer – to reach out to potential donors.
The Institute, formerly known
as the American Association of Fundraising Counsel, has been tracking
giving in some form or fashion for more than 50 years, and 2006 should
be no exception to years past, as far as total giving goes, noted Ruotolo.
“We saw robust giving in
2005, due to the extraordinary response Americans had to the needs that
came out of disasters such as hurricanes Katrina, Wilma and Rita, and
the Pakistan earthquake; following on that, with the strong economy
and stock market, as measured by the S&P 500, we should see giving
in 2006 set a record,” he said. It was estimated by Giving USA Foundation
that total donations in 2005 hit a current-dollar high of $260.28 billion.
Ruotolo added that people considering
giving to charity at Christmas continue to follow guidelines for good
giving, just as they would in less emotional times of the year. “Do
your due diligence,” he said, by visiting such Web sites as Charity
Navigator and
Guidestar, as well as the Better
Business Bureau, to check out any philanthropy you are thinking about
donating to.
“Try to become as familiar
as possible with the charity you are considering,” he added. “Are
they credible? Does their mission resonate with you? Are their administration
expenses reasonable?”
Further, he suggested checking
out the percentages of dollars raised that go toward direct services
vs. administration, although low administrative costs are not necessarily
a true indicator of wise stewardship. “Start-up charities might have
high administration costs as they get off the ground, so check carefully
when studying where to put your hard-earned dollars,” he said.
Be sure and get a receipt,
and make the donation in plenty of time so that checks and credit card
charges get posted by Dec. 31, which falls on a Sunday this year. The
IRS has tightened up its rules for proof of charitable deductions, so
it’s wise to get a receipt for any amount of donation.
Check with a financial advisor
to see what sort of donation makes the most sense for you personally.
Is a distribution of stock appropriate? Perhaps a tangible gift, like
a piece of artwork, would be appreciated by a charity you know well.
Cash, the one-size-fits-all gift, can be put to immediate use by a philanthropy
– just be sure and get a receipt!
Finally, if you are considering
a large gift to a charity or institution like your alma mater, talk
with its development professionals to determine what type of donation
would make the best match for both parties.
“In the end, what matters
is that both donor and recipient feel good about the transaction,”
said Ruotolo. “Wise giving ensures the best outcome for all parties
involved.”
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Giving Institute: Leading Consultants to Non-Profits, comprises the leading advisors in the philanthropic community. Formerly known as the American Association of Fundraising Counsel, the group developed the ethics and standards of practice that are used throughout the field today. Its mission is to advance the cause of philanthropy through research, advocacy and best practices. For more information about the Institute, visit www.givinginstitute.org.