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November 26, 2024

Shelly Manuel

From the Desk of

Shelly Manuel ¦ Associate Partner

Stay True to Your Mission & Reflect Neutrality 
 

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.

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.
 


More here.-13

What the Change in Government Might Mean to Nonprofits

The nonprofit world may be on the agenda for Congress and the White House in the new administration. Among the issues:

Should all Americans get a tax deduction for their charitable gifts? Only about one in 10 taxpayers itemizes their taxes, which means most donors get no tax break from their giving. That is a contributing factor in the decline in the number of everyday donors — an issue that draws bipartisan concern, as the mega-wealthy increasingly set the tone in the philanthropic sector. During the pandemic, non-itemizers were allowed to deduct a small amount. Independent Sector and a broad coalition of advocacy organizations will push to see that provision revived and expanded when Congress rewrites federal tax policy next year.

Is the 1969 law governing foundations still effective? The 1969 Tax Reform Act imposed a mandatory payout rate for the first time, amid concern that wealthy individuals were hoarding wealth in foundations without paying taxes. The current environment — full of concern about the influence of dark money and massive endowments — has again sparked populist ire. Some experts believe Congress may impose new regulations on foundations next year, when expiring tax cuts are expected to spark a re-examination of the tax code.

Should donor-advised funds be forced to pay out assets annually? Unlike private foundations, DAFs don’t have an annual payout requirement — prompting concern about the warehousing of assets that would otherwise flow to operating charities. Although the Internal Revenue Service has explored tightening restrictions on DAFs, Congress would have to pass legislation to impose payout requirements — something that DAF critics will likely push for in 2025. COP, 11-7

We Know Colleges & Universities
For more than 35 years, Alexander Haas has been a fixture in the nonprofit community. We are honored to have worked with so many large and small college and universities; both public and private institutions, across the country. These schools that help mold today’s young adults into tomorrow’s leaders. Take a look at our list of higher education clients, past and present.

A Fresh Approach to Fundraising
Our services aren’t cookie cutter. We don’t operate with a boilerplate, merely changing names and locations. We craft each and every service we provide to match your organization’s unique needs, wants and abilities. We work hard and expect you to do the same. Together we can help you transform your institution, your fundraising, and the community you serve.

Whether your need is in Capital Campaign, Annual Fund Campaign, Major Gifts, Leadership Annual Giving, Planned Giving or all of the above, we take a fresh approach to nonprofit fundraising.