The latest news, insights and statistics from in philanthropy. 

November 2005
Businesses Active in Charitable Giving - But Few Have a Plan
About 75 percent of fast-growth companies surveyed by PricewaterhouseCoopers report charitable giving activities to some extent. In return for their generosity, companies accrue a variety of benefits, including high-level networking in the community, and opportunities for attracting and retaining employees with compatible values.

But few -- only 15 percent -- have a formal plan for their charitable giving activities, PwC reports. And only five percent of surveyed CEOs said their business principals seek professional advice on addressing their philanthropic objectives. Similar numbers have an "informal" plan (31 percent) or commit to charitable activities on an "ad hoc" basis (36 percent).

Presently, 11 percent of "Trendsetter" CEOs either have, or are seriously considering establishing a charitable foundation or a donor-advised fund. "Charitable foundations have long been used," said Kevin Roach, Private Company Services tax partner for PricewaterhouseCoopers. "A donor-advised fund is relatively new -- a segregated fund owned and controlled by a nonprofit organization. Donors can make contributions to the fund and receive an immediate income tax charitable deduction, while retaining the right to make recommendations regarding how the contribution is invested, and the designation of the public charities that will receive future grants out of the contribution."

Survey findings

"On the surface, the majority of these CEOs may appear to side with Nobel-prize-winning economist, Milton Friedman, who has long held that social initiatives of companies undermine their profit-seeking purpose," said Roach. "But, there are many other reasons for being a good corporate citizen."

Other, mostly-local benefits. The bulk of "Trendsetter" companies' charitable giving is community-focused (79 percent), rather than national or international (21 percent). The majority of CEOs (69 percent) see significant benefits to be gained, particularly in the attraction and retention of employees with compatible values, and in high-level networking:

  • Attracting and retaining key employees (56 percent)
  • Networking with other business leaders (54 percent) 
  • Keeping present employees motivated (47 percent)
  • Winning new business contracts and sales (27 percent)
  • Maintaining present contracts and clients (27 percent)

"These CEOs see themselves first as members of the communities where their business is based," said Roach. "And, they see a number of ways they can benefit from their good works, particularly with executive networking and the development of an employee culture built on shared values."

Over the next two years, 42 percent of those surveyed expect their company's corporate citizenship activities will increase. Only one percent expects a decrease, while the majority (51 percent) expects them to stay about the same. Seven percent are uncertain or did not report.

October 2005
Donating Life Insurance Can Mean a Substantial Gift at Relatively Little Cost
Although Congress is seeking to curb abuses involving gifts of life insurance proceeds to charity -- specifically so-called "stranger-owned" and "investor-owned" life insurance -- this will not affect the more traditional gift of donating new or existing policies.  Depending on how the transaction is structure, donors may also reap significant tax benefits. 

August 2005
Knocked Down By Bear Market, Wealthiest American’s Contributions Failed to Rebound With Stock Prices
The wealthiest aren’t giving nearly as much these days.  They have cut their charitable donations by 70 percent since the stock-market boom ended, a new report shows.  Average contributions from households with a net worth of at least $5-million (excluding primary residences) fell from $600,000 in the three-year period 1998-2000 to $180,000 in 2002-4.

“When the stock market began to crumble in 2000 as the Internet boom ended, the wealthy substantially cut back their charitable giving.  While the market has regained most of those losses, our new data show that donations from wealthy households as a whole continued to fall.  In fact, the only segment that showed any recovery in charitable giving from levels seen in 2000-2002 is households with a net worth of more than $25 million.  And even those households remain far below their 1998-2000 giving levels,” said Catherine S. McBreen, Managing Director of Spectrem Group.
 
The report “Charitable Giving and the Affluent Market” is based on a Spectrem Group survey of affluent households as well as Spectrem Group’s 2005 Ultra High Net Worth Study.  Copies of the report can be purchased for $2,500 each at http://www.spectrem.com.

July 2005
6 Tips on Raising Philanthropic Children
Providing for children not only involves ensuring that they have clothes on their backs, roofs over their heads, and food in their stomachs, it also requires that families supply a sense of appreciation for their gifts, monetary and otherwise, and the desire to share those gifts with others. But when should parents begin teaching children about philanthropy? How can they pass on a family tradition of giving and prepare children for board service while acknowledging and respecting each child's individuality?

June 2005
Annual U.S. Donations to Nonprofits Climb 5%
After several years of anemic charitable contributions by Americans, the amount donated to educational institutions, religious groups, social service agencies and other nonprofit organizations rose 5 percent last year to $248.5 billion, according to a report released today.  The annual report by the Giving USA Foundation says that adjusted for inflation, charitable giving in the United States rose for the first time since 2000, when the booming stock market sent donations soaring.

May 2005
Community Giving Resource Launched
A free website and newsletter from the Neighborhood Funders Group and The Aspen Institute that puts together information and tools gleaned by dozens of professional foundation staff and packages specifically for family foundations without staff and individual donors.  The Community Giving Resource (CGR) guides family foundations and individual donors through the complexities of giving in struggling neighborhoods and communities.

April 2005
Wonder Women
Abigail Disney, Tracy Gary and Helen LaKelly Hunt are good friends who all inherited money from well-known family businesses. They now use their wealth to advance women’s philanthropy, a term that should not be confused with the stereotypical vision of socialites organizing celebrity-filled galas and calling in favors for silent-auction prizes. These heiresses run foundations and manage boards of directors that include destitute grantees who make joint decisions with affluent donors. They focus on helping women in impoverished neighborhoods and repressive countries change the status quo.
 
January 2005
Wealthy Have Done Nothing About Protecting Assets and Worry About Financial Security 
Many of America's wealthiest individuals have not taken basic steps to protect their assets, leaving their legacy and the financial security of their families to chance, according to the findings of a study released by PNC Advisors.  For example, 43 percent of individuals with at least $10 million in investable assets do not have a will.  The nationwide survey on attitudes about wealth among high net worth individuals found that with wealth comes added complications, including concerns that children will grow up spoiled, pressure to meet philanthropic obligations, anxiety over appropriate care for older parents -- even uncertainty about future financial security -- all made worse by lack of planning and poor communication.