Philanthropy is the Bestnvestment for Nonprofits
Increase Giving by Shifting Efforts from Disposable Income to Assets
Practical applications based on research by Dr. Russell James and experience by Dr. Eddie Thompson
Donors typically default to the easiest way to give, the way they are used to giving: writing a check.
But….explore other giving options for larger gifts now and in the future!
Suggestion #1: Increase Giving Today with This Simple Shift
There is a difference between gifts of income and gifts of assets (or wealth), and we should shift the focus of our fundraising efforts from disposable income to wealth. Even if it starts relatively small, once donors make that first gift of assets, it changes their point of reference and their wealth becomes relevant for future donations.
People put labels on money and treat it differently based on the label (i.e., weekly or monthly expenses, such as Starbucks, groceries, eating out, or going to the movies). If they only think of giving from disposable income, they’ll compare the gifts to other disposable income expenditures.
A study of one million nonprofit tax returns over six years shows that shifting to gifts of noncash assets drives total fundraising growth in every nonprofit sector, at every fundraising size, in every time period (same year, 3 years later, and 5 years later).
Thompson & Associates partners with nonprofits to provide estate planning services to their supporters. Our process clarifies their values and goals to develop a plan that benefits their loved ones and favorite causes. On average, donors who complete our planning process increase the size of their gifts in their estate by 137%!
Start the conversation of giving from assets and change your donors’ view by suggesting a charitable swap: give appreciated assets instead of cash. The donor can then use the cash to replace the assets and avoid capital gains tax. Win-win for everyone!
Suggestion #1: Nonprofits/development officers should focus on gifts from wealth, not disposable income
Dr. Russell James’ Research: Shifting to gifts of noncash assets drives total fundraising growth
Thompson & Associates’ Experience: Donors who complete our planning process increase the size of their estate gifts by 137%
Fundraising Tip: Begin to broaden your donors’ view of giving by suggesting a charitable swap: giving appreciated assets instead of cash
Proven Data Behind These Suggestions
Dr. Eddie Thompson and Dr. Russell James recently recorded a webinar about selling philanthropy, and planned giving specifically, to nonprofit CFOs. This insightful session and several great resources related to this subject are available to you below.
Dr. Eddie Thompson, FCEP
Founder and CEO
Thompson & Associates
Dr. Russell James, J.D., CFP®
Professor & Director of Graduate Studies in Charitable Financial Planning
Texas Tech University