Generosity is Always in Season: How to Give in 2022
Giving Season in the nonprofit world typically begins in late autumn and continues through the holidays and year-end. It is estimated that about a third of all charitable giving takes place in November and December. But there’s no need to confine your generosity to the final weeks of 2022. Giving early and giving generously to your favorite charities will be welcome this year. Since the debut of NPT’s new Grant Payments solution with PayPal, funding from your donor-advised fund can arrive almost instantly.
Your grant recommendations will make a difference this year. Here are a few things to keep in mind this 2022 Giving Season.
Reflect on the Year
Take some time to reflect on 2022. It was another year of tremendous change, and the past year’s major events can help serve as useful source of philanthropic inspiration for donors. There are areas of need everywhere from the geopolitical world stage to your community.
- The Russian invasion of Ukraine that began last February has caused devastation and suffering across the region. Donors have stepped up support to organizations in the U.S. and abroad providing humanitarian relief. Afghanistan too continues to face a humanitarian crisis a year after the Taliban regained control of the country.
- In addition to humanitarian crises, natural disasters fueled by climate change wreaked havoc in the U.S. and around the world this year. Recent disaster relief efforts and organizations working on long-term solutions for climate resiliency are candidates for interested donors this year.
- The COVID-19 pandemic entered a new phase, as vaccination campaigns expanded. Despite the ubiquity of vaccines available in the U.S. now, many developing nations still face difficulties in their attempts to provide the vaccines to their populations.
- In more positive developments, arts and cultural organizations saw a resurgence in fundraising revenue as performances and programming resumed. Health organizations too saw an increased flow of dollars as donors began to balance their preexisting priorities (like Alzheimer’s care and research, mental health, preventable drug-related deaths and cancer) with COVID-related giving.
Consider Small and Local Organizations
Small and local nonprofits are often in an excellent position to assess community needs and as a result, many punch far above their weight. A standard grant to a national organization might be transformative to a local group. Additionally, in an inflationary and uncertain economic environment, smaller organizations are typically more vulnerable to shocks. Human services organizations that deal in tangible goods like food, clothing, diapers and other essentials could certainly use an increased donation this season.
Practice Trust-Based Philanthropy
This Giving Season is an opportunity to try out trust-based philanthropy, taking a step from patron to partner. A key element of trust-based philanthropy is unrestricted grantmaking. Donors who choose to give unrestricted or general operating funds (some 70% of NPT’s donors last year) help provide nonprofits with increased flexibility, allowing them to invest in new program areas, retain key staff or expand their mission. Donor transparency and proactivity are also key ingredients in trust-based philanthropy, as more donors are willing to engage on a continual basis with the causes and organizations they care about most.
Expand Your Philanthropic Horizons—or Zero in On Your Favorite Causes
The world has changed since this time last year, and it is likely that your philanthropic interests, priorities and aspirations have evolved right along with it. You may have discovered a new cause, passion or project you wish to support, or made a pledge or commitment to an appeal earlier in the year. Now it’s time to act.
Giving Season is an excellent opportunity to seek out new organizations and causes to support. Family gatherings and holidays are a natural venue for conversation. Donors can draw inspiration from their friends’ and family’s charitable interests, match a colleague’s donation or honor a loved one with a grant.
Of course, providing consistent support to tried-and-true charities is also important. This might be the year to double down on your impact on your top causes. If you’d like to further hone a giving philosophy or approach, NPT has also developed a few resources and exercises to get donors started with a philanthropic strategy.
Keep Year-End Grantmaking and Contribution Deadlines in Mind
In order for NPT to review, approve and send grant payments in 2022, we ask that you:
- Enter grant recommendations by 11:59 p.m. ET on December 19. Approved grants will be distributed on or before December 30.
If you hope to have your grant recommendation approved in 2022 with grant payments sent early in 2023, we ask that you:
- Enter grant recommendation by 11:59 p.m. ET on December 23. Grants approved in 2022 will be distributed on or before January 5, 2023.
Donors may enter grant recommendations through the online donor portal.
Whatever your charitable strategy and priorities, it is important to take a mindful and active approach to your year-end grantmaking. It is also crucial that donors and advisors alike remain mindful of relevant grantmaking and contribution deadlines so that donors’ favorite nonprofits can benefit from their generosity.
NPT is not affiliated with any of the organizations described herein, and the inclusion of any organization in this material should not be considered an endorsement by NPT of such organization, or its services or products.
NPT does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.