Philanthropy
Gerald Blakely
Management 493K
Generosity is on the rise
In 1999 Americans gave $190 billion to charities
More than half of adults volunteer (109 million volunteers) averaging 3.5 hours per week
Giving as a % of GDP Year GDP 1969 2.1 1974 1.8 1979 1.7 1984 1.8 1989 1.8 1994 1.7 1999 2.1 2002 2.3
Benevolence is growing
The number of foundations has more than doubled since 1980
3/5 of the largest foundations were created during the past two decades– Gates Foundation ($22 billion)– Soros Foundation ($2 billion)
$41 trillion in inheritances over the next 50 years with much of it to charities
Seventy % of households contribute to charity with an average family gift of over $1,000
Socially responsible mutual funds– $162 billion in 1995– $1.4 trillion in 1999
Your charitable giving
You should have a strategy– Think systematically about your giving– Develop your own mission– Check out Guidestar and Give.org
Consumer-oriented yardstick is that the non-profit should put 75%+ towards program costs
How much can you give?
Typically giving is between 1.5% and 2% of income
Best to incorporate charitable giving thoughtfully into money habits and lifestyle goals instead of worrying about how much is enough
Critical question - How active do you want to be with your giving?
Donating cash and stock
Contribute Stock Sell StockAmount of Donation $5,000 $5,000Charitable Deduction $5,000 $5,000Income Taxes Saved $1,800 $1,800Capital Gains Tax $0 $800“Cost” of Donation $3,200 $4,000
Other ways to share
Make a will Charitable fund through a mutual fund Community foundation Private foundation Charitable remainder trust or some variation Life insurance Retirement plans