Friday, March 26, 2021
As reported in The Chronicle of Philanthropy, the Lilly Family School of Philanthropy recent report predicts a period of “broad philanthropic growth” is forthcoming the next two years as the economy and nonprofits recover from the Covid pandemic. The Chronicle article provided additional detail:
The [Lilly] report forecasts a 4.1 percent increase in total giving in 2021 and a 5.7 percent increase in 2022. For individual and household giving, the report forecasts a year-over-year rise of 6 percent in 2021 and 3.9 percent in 2022. Meanwhile, giving by all types of foundations is predicted to dip by 1 percent in 2021 but then jump by 8.8 percent in 2022. The report also projects giving from estates will grow 1.1 percent in 2021 and 12 percent in 2022, while giving by corporations is predicted to rise 4.3 percent in 2021 and 6.4 percent in 2022.
Citing the Fundraising Effectiveness Project, The Chronicle article also reported that individual giving increased in 2020 over the prior year, with the greatest increase in the form of gifts under $250. Changes to the rules for charitable deductions (as described in this prior blog post), passed as temporary measures in the CARES Act, allowing more taxpayers to deduct charitable contributions. The Project also reported that the number of donors also grew by about 7% from 2019 to 2020.
Nicholas Mirkay, Professor of Law University of Hawaii