The Power of Recurring Donations
The giving season has officially begun, and nonprofits around the country are bracing for lower donor turnout as the chances of an economic recession grow.
Here are some important things to remember as you consider your family’s year-end donations, in light of the current economic downturn:
- The economic pressures you feel are affecting your favorite nonprofits, too. The rising costs of non-discretionary expenses are forcing organizations to reevaluate their budgets, fundraising goals and programmatic scope for 2023.
- End-of-year giving is crucial for organizations that rely on donations from individuals. Nearly 30% of individuals make their donations in December. Nonprofits plan their annual fundraising around this timeline, meaning that a last-minute shortage of year-end gifts can leave them with few other ways to meet their revenue needs.
- Nonprofits build their growth strategies with their most loyal donors in mind. An organization’s ability to consistently show up for the communities they support is heavily dependent on recurring donations. If you’ve been supporting the same nonprofit for years, chances are they’ve been working to engage you all year, and are drafting their 2023 budgets with your regular contributions in mind.
- Organizations that provide social services have even more work to do. For food banks, homeless shelters, and other nonprofits that serve families struggling to afford essentials like food, housing, and transportation, an economic recession will result in more families facing even tougher circumstances and a higher cost of services to support them.
- There are plenty of smart ways to give! As Brighton Jones Lead Advisor Jesica Ray says, “It’s important to keep a long-term investment approach when thinking about all expenses, charitable giving included. You likely have assets you can tap into that are more conservative and capable of meeting your giving goals.”
- Do you have a Donor Advised Fund? Those dollars are already earmarked for donations and aren’t affected by market volatility.
- If you’re taking Required Minimum Distributions, it could be a good opportunity to make Qualified Charitable Distributions instead, so you can support causes you care about and also get the benefit of that money not being subject to taxes.
- Donating long-term appreciated assets may be the perfect way to potentially increase tax savings and support your favorite organization.
Do you have questions about your year-end giving? Your Brighton Jones service team is here to help! Please reach out to us any time.