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