Donors are meeting today’s challenges, says Schwab Charitable
Charitable donations did not increase as much last year as in the first full year of Covid-19 in 2020, but they still saw a dramatic 20% increase in total dollar donations, according to Schwab Charitable’s 2021 “Giving Report” released today.
The increase in dollars, as well as in the number of grants and the number of charities supported, shows that donors continue to meet the challenges posed by Covid-19, social issues and natural disasters, said Fred Kaynor , managing director of marketing, business development and strategic partnerships at Schwab Charitable, in an interview with Financial Advisor.
Schwab Charitable donors gave $4.4 billion to charities through 945,000 grants in 2021, providing support to 114,000 organizations, the most on record, Schwab Charitable said.
“We thought 2021 would be another good year for donations, but we didn’t know how strong it would be,” Kaynor added.
“We have seen a continued increase in donations and donor engagement,” he said. “Schwab Charitable has developed several programs to streamline the giving process and make it as tax efficient and easy as possible. Seventy percent of our donors said they gave more because they used a fund donor-driven than they otherwise would have.Eighty-two percent of grants awarded in 2021 were automated, showing that Schwab Chritable programs are succeeding with clients.
An earlier Schwab study showed that 85% of RIAs offered charity planning as an added value. “It shows that more and more clients are prioritizing charitable planning and are turning to advisors for help in maximizing the impact of their giving. Clients turn to advisors for help, and advisors turn to resources like Schwab Charitable. »
“After the incredible outpouring of charitable support in 2020, we are humbled and grateful that our donors have extended their record generosity through 2021,” Sam Kang, president of Schwab Charitable, said in a statement. “Our donors have shown the power of their generosity by resolutely committing to increase their support for worthy causes in all sectors and all regions. »
Other telling statistics from the past year showed continued growth in the number of people giving unrestricted grants and the number of donations to organizations to which they had not previously donated. Seventy-one percent of the grants awarded were made unrestricted to a particular expense or project, providing recipient charities with greater flexibility.
Each Schwab Charitable donor recommended, on average, 11 grants in 2021, and 63% of donors gave to an organization they had not previously supported. Donors also increased the number of grants to organizations recommended by the Center for Disaster Philanthropy, a number that increased 13% in 2021 compared to 2020, Schwab Charitable said. The organization provides donors with lists of charities recommended by the Center for Disaster Philanthropy, charities supporting relief and recovery efforts for various crises around the world, including wildfires, tornadoes , hurricanes and other natural disasters, as well as humanitarian and health crises.
Schwab Charitable also provides educational tools and resources to support donors, advisors, and nonprofits. The “Giving With Impact Podcast” series, developed with Stanford Social Innovation Review, brings together leading voices from across the philanthropic sphere to engage in ambitious yet practical conversations about achieving more effective philanthropy, said Schwab Charitable.
The Schwab Charitable Giving Guide is an interactive giving planner. The Advisor Resource Center is a toolkit for financial advisors who want to provide their clients with a comprehensive structure to develop their giving strategy based on their clients’ philanthropic goals and priorities. The Fundraising Toolkit for Nonprofits is a web-based resource that offers tips for fundraising and building a donor base with donor-advised fund account holders.