Tag: charity

Philanthropy Trends of 2019

On July 19, 2019

With the better part of this year behind us and the mild weather months on the horizon, this time can be used to reflect on the trends that we have seen in philanthropic involvement this year so far. Identifying and analyzing current trends in philanthropy and how they have changed in comparison to previous years is the best way to make future predictions. We can use these trends to predict how societal involvement and philanthropic engagement should pan out in 2020 and even beyond.

Donations are increasing

Since the Great Recession, total charitable donations have been on the rise. Since 2014, the U.S. is continually surpassing their total donation amount year after year, with no evidence of this trend slowing down anytime soon. However, while most would attribute this to a rise in the number of households becoming involved in philanthropic engagement, it is actually more likely due to a larger monetary amount donated from the same number of households, on average. The donor pool is decreasing, while the donation amount continues to rise.

More millennial involvement

The millennial generation is the most recent age group to begin to enter the workforce. With this emergence comes a new generation of socially aware individuals with a salary and income to support their philanthropic desires. Millennials are a generation surrounded by social media influence where activities, like volunteering and donating to charities, are broadcasted. Seeing others involved in acts of kindness and volunteering is contagious to others, with help from real-time streaming and technology available on smartphones.

A rise in impact investing

Impact investing is the act of investing in companies that are intending to not only gain fiscal profits but also provide social impacts to benefit organizations that align with the company’s mission statement. This is not a new concept by any means, but it is an activity that has seen a rise in interest by many industries in recent years. Impact investments provide a way for donors to be able to advise and oversee their funds, which appeals to the businesses who are more considerate of making a profit while also doing good for society.

Technology making us more knowledgable

Philanthropists and donors are interested in knowing more about their charitable impact. Donors are becoming more focused on results and have been known to increase their charitable contributions when they are provided information on how their donation has directly impacted the organization and cause. Technological advancements make it easier to provide donors with this information. It is now easier than ever to spread awareness of organizations and even more simple to make a donation with the click of a button on a social media profile.

It is likely that these growing trends from 2019 will follow us into 2020. With technology and social impact progressing as it has been, there is no limit as to what philanthropic trends we might see in the near future.

Tax Benefits Of Philanthropy James Lustig

The Tax Benefits of Philanthropy

By Jimmy Lustig

On June 24, 2019

In Blog

Volunteering in a charitable organization that is important to you can provide many altruistic benefits, like a feeling of selflessness and compassion. Those benefits alone are typically enough for individuals who are heavily involved in philanthropy and serve as a motivating factor to continue to contribute. However, as an added bonus, philanthropic contributions can also provide financial benefits to volunteers as well in terms of their taxes. While tax deductions are not typically the driving factor behind most philanthropic engagement, it is still helpful for volunteers to know about the fiscal benefits of their hard work and dedication.

Cash Donations

Donating money to a charitable organization provides them the opportunity to choose what they use your contribution for. In most cases, monetary donations are used by philanthropic organizations and nonprofits to cover expenses. Since nonprofits do not receive revenue profit, as the name alludes to, all expenses that they face are covered by donations or pro bono contributions. This can go towards amenities and necessities like supplies, research, events, and employee compensation. So long as you save your receipts and any documentation of monetary donations, you can claim a tax deduction for the fiscal year in which it was made.

As with any governmental involvement, there are limitations on these tax deductions. However, for most individuals, the ceiling of how much you can donate is not usually an issue. A percentage of your gross income is able to be match from your contribution to your tax deduction. It is recommended to consult with a local tax professional if you plan to make a bigger donation to be sure that you are educated on your tax deduction limitations.

Non-cash Donations

Non-cash donations offer an endless amount of ways that individuals can get involved in philanthropic endeavors. Many people think that they are not fit for philanthropic involvement due to a lack of funds but this is not the case. Volunteering your time is a great way to help a charitable cause while remaining financially sound. Since most charities run as non-profit entities, they are always welcoming volunteers to assist their employees in their missions. You can itemize a list of the resources that you used to volunteer for tax deduction benefits, like time, mileage, parking expenses, etc.

Donating items like clothing, glasses, shoes, furniture, and technology are another way that people can be involved in bettering society through philanthropic contributions while also ridding themselves of items that they no longer need. As always, saving the receipt for these donations will make them tax deductible.

There are also a number of very generous individuals who donate high value items like cars, houses, and land. There is a fair amount of paperwork involved in these donations as the items carry a higher appraisal value than others. This is when it is especially important to consult with a tax professional to be sure that all areas are being covered when making a large donation like this if you intend to declare it on your next tax deduction.

No matter the donation, large or small, monetary or not, any charitable contribution is making a positive impact on an organization and helps them take the necessary steps towards accomplishing their mission. Just be sure to retain all paperwork and proof if you intend to reap the fiscal benefits in addition to the altruistic ones.

Charity versus Philanthropy: What’s the Difference?

By Jimmy Lustig

On July 24, 2018

In Blog, Jimmy Lustig, Philanthropy

Often, the words charity and philanthropy are used interchangeably. Both have to do with giving and helping others, so it’s easy to conflate the meaning of the two words. But, the two words have distinct meanings and deal with different areas of world change. To put it in simple terms, charity is giving, while philanthropy is doing.

Charity is a short-term response focused on relief and rescue. It addresses an immediate need for a community or a cause, such as food, shelter and medical care. Giving a meal or a coat to a homeless person would be charity, not philanthropy. While it’s addressing a need and is necessary, it doesn’t tackle the root issue.

Philanthropy focuses on finding a long-term solution to a problem. Philanthropy aims to solve problems, instead of providing temporary fixes to them. Philanthropy is a more strategic plan of giving that’s built around past success and has a strong focus on the community. While charity often only benefits one or a few people, philanthropy aims to reach a much broader group of people. By tackling the societal roots of these problems, philanthropy seeks to change the world in the long-term.

Another common misconception is that only the rich can be philanthropists. While those with money can tackle larger humanitarian issues, like donating money to build a new hospital wing, everyone can be a philanthropist. Everyone can make changes in small ways with some planning. Speak to the people in your community and learn what their needs are. Then, learn how to use the skills and resources you have to contribute to a solution to those needs.

This is not to say that charity is useless or should be done away with; it solves a purpose and gives us a chance to make small impacts on others. Both charity and philanthropy are necessary, and one isn’t better than the other. Another way to look at it is that philanthropy and charity are two different approaches to solving the same problem. They’re overlapping strategies that both are vital to the nonprofit sector. The two work in tandem with each other and the hope is that the practice of philanthropy eventually eliminates the need for charity.

An example of how the two work together can be seen in dealing with addiction. Philanthropy may fund a study that looks into risk factors of addiction or provides preventative education that works to prevent people from becoming addicts in the first place. These are long-term strategies, and ones that may take years to make any difference in addiction rates. A charitable organization would deal with the right-now of drug addiction, perhaps in the form of starting a detox center, to handle the immediate need.

Don’t Just Donate Your Money — Donate Your Time Too

By Jimmy Lustig

On June 29, 2018

In Blog, Philanthropy

When it comes to helping others, there are many ways you can get involved. The most obvious one is to donate money. But, donating your time is just as valuable if you don’t have the money to spare or want to see your impact first-hand. Nonprofit organizations rely on the generosity of others to keep running, as many only have a small number of full-time staff.

While giving monetary donations is helpful to organizations, when you donate your time you get to see your direct impact. Sending off a check every month doesn’t have the same feeling as giving up a few hours of your day to be spent helping others. When you donate your time to organizations, it’s an instant mood-booster. The knowledge that you’re helping others and making their lives better, in turn, makes you feel great.

Volunteering your time not only makes you feel happier, it also helps to give you a sense of purpose. Supporting organizations that are working towards goals that you feel passionate about help you to feel directly connected to the impact they’re making. If you feel you have a moral duty to help others, giving your time is one of the best ways to fulfill that duty. In some organizations, like a soup kitchen or an after-school program, you’ll get to work directly with the people you are helping and see first-hand the impact you are having on the lives of others.

Giving your time may also inspire others in your life to do the same. When your friends and family see how fulfilled you are after spending a day volunteering, they may feel a stir to do the same. Speak to the people in your life about how important it is to give back, and they may feel compelled to do so as well. Another way to get others involved with the organizations you care about is to make it a family affair. Set aside one day a month where your whole family spends time volunteering at a local organization.

If you don’t have the extra time to give to an organization, but want to feel more involved than just sending money, consider making item donations. Many organizations have lists of supplies they accept for donations, like cat and dog toys and food for an animal shelter. While you’re still helping the organization in the same way as a monetary donation would, it feels a little more personal and like you’re having a direct impact.