This is our final installment of the three-part blog on philanthropy trends we’re seeing; don’t forget to go back and read our first and second sections if you’ve missed them.
- Donor Advised Funds. Increasingly, individuals are utilizing donor advised funds in lieu of foundations to address a variety of needs (from anonymity, family generational issues, timing of tax implications following a liquidation event, etc.). Large national financial institutions have led in this area, including Fidelity, Vanguard, and TIAA CREF. Locally, there are a number that are also leading including SVCF, CCF, and JCF. But what’s missing from this puzzle is that when a funder makes a gift to a DAF, there’s no need to disburse it today. Time is what’s missing. There is no urgency to distribute, and the money can just sit. In response to this, nonprofit development officers should also spend time cultivating relationships with advisors. These individuals are often in positions to essentially pick charities (after a certain amount of due diligence) that they’re familiar with and have had good experiences with. Additionally, organizations should emphasize the urgency of their need to encourage donor advised funds to distribute. Since they’re not foundations, they don’t have to distribute 5% annually – it might be none, but perhaps you can help them understand the value of it being more.
- Place Based Philanthropy. The number one long-term trend we’re expecting to see significantly change how philanthropy exists in the country is through place based giving. Many academics in philanthropy believe that neighborhoods and community based programming can actually be the best solution for many of our communities’ long standing challenges – from hunger, to education, to gun violence. Emphasize your neighborhood involvement and build relationships with other nonprofits/programs that are community based. Look beyond traditional nonprofits and identify ways to partner with local government. Nonprofit executives should also incorporate their organization into the larger community discussion about the issues – for example, if you provide shuttles for seniors to community programming, you should be involved in the community level discussion around city transportation and also generational programming.
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