Fundraising Taks – June 2022

News and updates from the USM Office of Advancement Research

Letter from the Director

For advancement professionals, June is when we wrap up fiscal-year fundraising efforts and strategize for the upcoming months. As we move ahead, we may be faced with new challenges such as increasing inflation and the high likelihood of a recession in the near future. While charitable behaviors of donors are primarily influenced by personal values and motivations, economic factors may also play a role in determining their behaviors.

Last month, we shared insights from a report by BNY Mellon Wealth Management on how family offices are responding to rapid economic and social change. This month, we would like to share information from a charitable giving study by BNY Mellon on high-net-worth investors’ experience and attitudes toward charitable giving. This report studied individuals with wealth ranging from $5 million to more than $25 million. The study provides information on areas related to high-net-worth individuals’ charitable giving strategy, motivations for giving, types of assets donated to charities, and more. It’s not surprising to learn that the greatest motivating factors for these high-net-worth investors are personal satisfaction and connections and not tax benefits. The key findings from this report can help us understand the behaviors of high-net-worth donors and prospective donors and help us create strategies to secure major gifts.

Some of the key findings from the report are:

• Fifty-six percent of high-net-worth investors have a charitable giving strategy, while twenty-two percent would consider adopting one.
• The majority of high-net-worth investors have incorporated a charitable giving strategy into their overall wealth strategy.
• Sixty-three percent have worked with a wealth advisor, while 44 percent with family members for advice regarding a charitable giving strategy.
• The top motivators for charitable giving are personal satisfaction and personal connections.
• Many report changes in their giving strategy due to the pandemic.
• Many will consider increasing their giving and support more organizations over the next two years.
• Donor-Advised Funds are likely to be used by lower AUM investors, while investors with higher AUM may use a variety of charitable giving vehicles.
• Sustainable investing is primarily prevalent among higher AUM and younger investors.
• Cash is the asset most likely to be gifted; other assets such as stocks, bonds, crypto, etc., are more likely to be gifted by those with higher AUM.
• Charitable giving strategy will be impacted by how well wealth advisors understand the values of investors.

As inflation rises and a recession looms, I hope fundraising can stabilize by implementing creative strategies that allow donors to respond to the needs of nonprofits even when economic factors are not favorable. One such strategy would be to cultivate younger generations, as they express strong interest in impactful philanthropy that aligns with their values. Another idea is to provide ways for individuals to engage that will elevate their personal satisfaction.

We wish you a safe and healthy summer, and continued success with your fundraising efforts. As always, please feel free to reach out to us with questions, comments or any assistance with fundraising research!

Read more in this issue of Fundraising Talks>>