The Pentera Blog
Wealthy Donors Have a “Giving Gap” That Education About Planned Giving Can Help Fill
Almost half of wealthy donors have never used a “giving vehicle” such as a planned gift, meaning there is a lot of opportunity for nonprofits to educate donors and encourage the use of charitable gift options. That is the conclusion of a 2016 survey by Fidelity Charitable that is aptly titled “The Giving Gap.”
The survey found that 47 percent of the wealthy donors had never used a giving vehicle or method, even though such strategies could help them “save on their taxes, and in some cases, give more to the charities and causes they care about.” The giving methods that donors were asked about included all types of planned gifts and also strategies such as giving through foundations and donor-advised funds.
“While donors are most likely to know about bequest giving, far fewer have included a charity in their will. Even fewer donors are aware of other legacy and gift planning vehicles and methods,” the study authors concluded. “Nonprofit development offices have an opportunity to educate donors on the ways that making use of these methods can be beneficial to both their supporters and the organizations.”
The survey included those who had made charitable gifts in the previous year who are considered either high-net-worth (investable assets of more than $1 million) or affluent (investable assets less than $1,000,000 but more than $100,000). About two-thirds of them said they give more than $5,000 per year, with 30 percent giving more than $20,000 per year. Those who gave more were more likely to use giving vehicles: 77 percent of those who gave more than $20,000 in the previous year had used at least one giving vehicle.
Younger donors more likely to make planned gifts
One interesting finding was that younger wealthy donors were more likely than older donors to make planned gifts, although there was still a lot more opportunity for planned giving among those younger donors.
"While wealthy donors under 50 make up a small proportion of the population overall ... and may not have the wealth of their older peers, they do have more available income and are committed to giving," the study states. "Still, younger donors could be taking greater advantage of the range of tax- and strategic-planning benefits of giving vehicles."
The survey found that retirees have especially low use of giving vehicles. The study concluded that wealthy donors in general "are unaware of the range of giving methods and vehicles available that can benefit both donors and the charities they support."
The full survey report can be accessed here.
