Key Insights About Philanthropy

LiveGive is passionate about keeping its clients aware of the latest developments in philanthropy around the world. Here are trends we’ve spotted—and want to share with you.

Giving is increasing.

“Americans contributed over $410 billion to charities in 2017, representing a 5.2% increase over 2016, and cross-border giving now exceeds $22 billion, demonstrating the awareness of how closely connected we all are. Giving by individuals increased 5.2%, Giving by Foundations increased 6% and Giving by Corporations increased 8%.” (Giving USA 2018: The Annual Report on Philanthropy for the Year 2017)

The profile of the giver is changing.

“Demographics are changing as well. With the largest wealth transfer in history underway, there is greater awareness of where that money is going. Most of the private wealth that changes hands in the coming decades will likely go to women. They already control almost 40% of all investable assets, and many are entering their peak earning years making them significant wealth creators in their own right. Historically, women have been charitable, quietly driving the charitable decisions in their home. Now they are coming to the fore, actively taking charge of their own wealth planning.

Meanwhile, Millennials are also building economic security and wealth, and they stand to inherit substantial funds over the next 20 years as well. Having grown up in the digital age, they truly see themselves as global citizens. Millennials are hands-on donors who expect that their charitable dollars and personal involvement will achieve real-time and meaningful change. They are significant drivers of the growth in the impact investing space as well, and they see this as a very real companion to traditional grant-making.

These two markets alone are permanently changing both how philanthropy is viewed and how it is discussed. Today, both demographic groups are more vocal leaders and want to make good philanthropic investments that lead to real change.” (The Charitable Planning Desk Reference for Advisors, Strategic Philanthropy 2018)

Corporate giving is increasing, as well.

“Giving by corporations reached its highest level ever at $20.77 billion in 2017. Giving by corporations increased 8.0 percent from 2016 in current dollars (5.7 percent in inflation-adjusted dollars).” (Giving USA 2018)

Corporations are shifting how they give.

“Traditionally, workplace giving had two consistent components: workers who donated to campaigns tended to have limited direct contact with the nonprofit organizations receiving funds, and the decisions about the recipients of workplace giving campaigns were decided largely by management, rather than employees. Those elements are changing from the perspectives of the employees and the companies alike. Increasingly, employees demand options when it comes to giving time and money through the workplace. At the same time, companies are seeing increased employee retention and profitability when corporate social responsibility (CSR) efforts extend beyond workplace giving to overall business strategy, investments, and governance.” (Giving USA Special Report on Workplace Giving)

Younger generations expect greater social responsibility from corporations.

“When searching for a job, 79 percent of Millennials in the survey responded that they sought employers who care about how they impact and contribute to society and 76 percent “consider a company’s social and environmental commitments.” 24 This conviction goes even further: 64 percent expressed that they would refuse a job offer if a potential employer did not have strong CSR practices.” (2016 Cone Communications Millennial Employee Engagement Study)

Giving expands from hometown focus to a broader worldview.

“National Center for Family Philanthropy surveys show that only 40 percent of foundations created since 2010 focus their giving on a geographic area, compared with 80 percent of foundations created before 1970. Esposito expects this trend to continue, as modern entrepreneurs increasingly run global businesses and focus their philanthropy worldwide.” (National Center for Family Philanthropy, Understanding the Modern Family in Philanthropy, Feb. 12, 2019, Drew Lindsay, Chronicles of Philanthropy)

The vetting of organizations is shifting toward a greater focus on impact and effectiveness.

“Over the past decade foundations, nonprofits, and some policy makers (including the U.S. Department of Education’s Investing in Innovation Fund) have relied heavily on research results to guide funding for social programs. This “what works” movement has spurred the development of an industry around social-outcome measurement, led by organizations such as MDRC, a nonprofit social-policy research organization; the Abdul Latif Jameel Poverty Action Lab (J-PAL), at MIT; and Mathematica Policy Research, based in Princeton, New Jersey. Bono and TPG recently launched Y Analytics, a company investing billions of dollars to measure “impact investments.” As the Wall Street Journal article stated, “Of course, a program’s impact is not just about the number of people touched; it’s about the improvement achieved. Fewer people touched deeply may be worth more than many people hardly affected.” This shows the complexity of measuring impact but the importance of the movement in this direction.

Donors are looking for a fresh perspective and more personalized giving.

“Groups that experienced the steepest declines in giving are some of the nonprofit world’s oldest and most revered giants, including the American Cancer Society (No. 14; down 34 percent), the Jewish Federations of North America (No. 75; down 41 percent), and the biggest of them all, United Way (No. 1; down 28 percent). United Way and the others don’t lack for critics who contend that their brand is tired, their fundraising outdated. Says Brian Gallagher, United Way’s CEO since 2002: "My board’s happy with what I’m doing, but there are times when I look at these numbers and I’m not sure that I’d keep me." (America’s Favorite Charities 2018, Chronicle of Philanthropy)

Generosity is contagious.

“A study by James Fowler of the University of California, San Diego, and Nicholas Christakis of Harvard, published in the Proceedings of the National Academy of Science, shows that when one person behaves generously, it inspires observers to behave generously later, toward different people. In fact, the researchers found that altruism could spread by three degrees—from person to person to person to person. “As a result,” they write, “each person in a network can influence dozens or even hundreds of people, some of whom he or she does not know and has not met.” (greatergood.berkeley.edu / “Five Ways Giving is Good for You.” Suttie/Marsh)

Key Insights About Philanthropic Consulting

LiveGive taps into the wisdom and best practices of leading experts on philanthropic consulting. Here are trends we’ve spotted—and want to share with you.

Over the past two decades, the relatively new field of philanthropic consulting has opened up incredible opportunity for donors.

“To help ensure their philanthropy is being used effectively, donors are increasingly seeking the help of professionals. Philanthropic advising has grown as philanthropy has become more complex,” said Una Osili, associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy. (New York Times, “When It Comes to Donating Money, Who Do You Trust?” March 22, 2018)

The number of organizations doing good in the world has continued to grow.

“According to the National Center for Charitable Statistics, there are upwards of 1.5 million non-profits in the US alone.”

Generous donors want help in navigating the complicated waters of philanthropy.

“Less than half of wealthy donors have a strategy or budget in place to guide their charitable giving (49% and 48% respectively.)” (2018 Study of High Net-Worth Philanthropy by U.S. Trust)

“94% of high net-worth households says that they want to learn more about charitable giving. (2016 Study of High Net-Worth Philanthropy by U.S. Trust)