November 14, 2024
November 14, 2024
From the Desk of
Shelly Manuel ¦ Associate Partner
Every four years, we have a Presidential election and the concern for charitable giving during an election year arises. “We need to time annual appeals with the election.” “Will this election impact our success with year-end donors?” Those sentiments are spoken throughout nonprofit development and leadership team meetings. However, giving during an election year tends to follow trends in philanthropy more than decrease due a Presidential election. Giving USA reports that charitable contributions in 2023 were down 2.4%, adjusted for inflation. Should data reflect a decline in 2024, it will more likely be attributed to recent trends than an election.
With the presidential election behind us, stick to fundraising strategies that we should always follow. Acknowledge the “elephant in the room.” Practice mindfulness around donor conversations but continue to build relationships and solicit support. You may need to look at additional segmenting of messages or spending more time making messaging personal. Explore using multi-channel communications to avoid donors “tuning you out” because of political saturation. Use your data to drive decision making. Use common sense.
Post election emotions can run high, and with this particular election, I would anticipate “big feelings” based on results. “Rage giving” can arise as the result of a major political shift in policy or from election results. Data shows that charities reflecting the losing candidate’s ideals rose 57.5% while support for the winning candidate’s principles only went up by 2.9%.
Remember, in nine out of the last ten elections, giving increased post-election. Stay true to your mission and reflect neutrality to constituents. Don’t stop fundraising. Use the information gained from building relationships to guide you.
Generational Divide In Giving & Planning
Bank of America has released its 2024 Study of Wealthy Americans and finds a massive generational transfer of wealth has already begun. Older and younger generations are surprisingly far apart on many investment issues, which could change allocation trends as wealth transfers to younger Americans. These differing opinions are also seen in the opportunities for growth in today’s environment.
Inheriting Art & What’s Next
About 30% of all wealthy Americans indicate that their parents or other older relatives have an art collection, and two-thirds of those do expect to inherit some or all of that collection. After inheritance, seven in 10 expect to keep the collection for personal use – but there’s a notable gap in the plans of younger wealthy people (56%) and the plans of the older generations (77%). Younger people are relatively more inclined toward gifting, donating,selling or loaning the art to others.
Philanthropy
The younger demographic is more inclined than their parents to say they share the same commitment to giving back. There is less confidence in the older generation on that question. A deeper disagreement emerged over their approaches to philanthropy goals. Older people say their children are taking the same approach as them, while younger people do not agree.
Estate planning
Interpersonal family dynamics are the most frequent culprit for inheritance-related strain, particularly cited by older wealthy people. The unequal distribution of assets is another common cause. Hard assets like jewelry and heirlooms can factor into these scenarios – yet they’re only included in estate planning about half of the time.
Election No Distraction for Younger Diverse Donors
Recent research findings challenge the long-held belief that elections negatively impact overall charitable giving by drowning out nonprofits in favor of political campaigns. Survey data found that younger and more diverse donors are planning to ramp up their gifts to charities this year, according to research tracking giving intent amid a turbulent election year.
The survey, conducted in August, was a follow-up to an earlier round of research in April.
Key Findings
The survey was conducted by fundraising and advertising consultancy Blue State. COP, 10-23
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