I was preparing a class presentation for University of the Incarnate Word recently, and by the conclusion, I realized I had learned something new, myself. For the nonprofit sector, the future is bright! Normally, I write a year-end “predictions” post, but I guess I am jumping the gun a bit with this one.
UBS Investor Watch 2021 published a report this summer called, “The New Valuables.” They note, “Investors’ purpose now: putting capital behind experiences, relationships, and helping others.” The statistics are striking.
- 79% of UBS investors say, “COVID-19 made me reassess what’s most important.”
- 77% say, “I believe life experiences are more important than material things.”
- 68% say, “I want to make more of a difference.”
- 66% say, “I feel guilty for being more fortunate than many other people.”
- 59% say, “I am more interested in sustainable investing as a result of COVID-19.”
For nonprofit organizations, this is inspiring news and suggests investor thinking is trending toward more and perhaps greater philanthropic activities in the months and years ahead.
When you combine this information with the steady growth of “CSR,” or corporate social responsibility, the future looks even brighter.
“Corporate social responsibility is a management practice whereby companies integrate social, environmental, and economic concerns into their business operations. Examples of CSR initiatives can range from philanthropic efforts and involvement in the local community to diversity and inclusion and transparency. Rooted in the belief that businesses can play a role in shaping a better world, CSR can be a part of all companies – from large global corporations to small local businesses.”Washington Business Dynamics
The report also notes, “A study by Cone Communications found that 63% of Americans are hopeful that businesses will take the lead to drive social and environmental change and 76% will refuse to purchase a company’s products or services upon learning it supported an issue contrary to their beliefs.” Corporations are paying attention, and I for one hope the trend continues to rise.
I have also tried for years to push nonprofits toward planned giving. But for many, their immediate needs are so urgent that launching and maintaining a long term planned giving program is not considered. But there are escalating reasons why today is the perfect time for all nonprofits to venture into planned giving. Kate Dore, CFP notes in, “Are you prepared for tax impact of the $68 trillion great wealth transfer? Here are some options to reduce the bite” for CNBC (July 12, 2021).
- It’s estimated that nearly 45 million U.S. households will transfer $68 trillion over the next 25 years, according to Cerulli Associates.
- With tax laws in flux, estate planning is more critical than ever, financial experts say.
- To lessen the tax bite, families may consider Roth IRA conversions, life insurance, gifting and other strategies.
A bequest in a Will is one of the easiest and most popular ways to leave a legacy for the benefit of the community and for future generations. One of my favorite resources for Wills is Nolo Press. “If we do nothing else to take care of our legal affairs, we should write a will. If you don’t make a will before your death, state law will determine who gets your property and a judge may decide who will raise your children.”
Giving Docs is a platform I learned about through the startup sector in Austin.
“Studies have shown that building an estate plan with a charity as part of their legacy, increases volunteering, doubles lifetime giving, and helps them feel a greater sense of purpose. Yet more than half of people die without creating a will, leaving behind conflicted families, wasted money in legal fees, and missed opportunities to leave meaningful, well-considered legacies. We seek to help people live more meaningful lives, create significant legacies, and help grow the extraordinary organizations that inspire them.”
Whatever ways in which you choose to encourage your constituents to place your nonprofit in their Will and estate plans, give it a try. Gabrielle Weiss provides timely advice for everyaction in, “5 Ways Your Nonprofit Website Can Promote Planned Giving” (May 21, 2018). Simply adjusting your website to provide planned giving information and options makes sense. Concannon Miller asks on his website, “Is your nonprofit organization pursuing planned gifts? It should be. Research suggests that the average planned gift in the United States falls between $35,000 and $70,000 – and the amount may increase with more Baby Boomers moving into retirement. Yet many nonprofits, especially small and medium-sized organizations, lack formal planned giving programs.”
I admit, I was surprised over the course of the last year and a half that more of our nonprofit planned giving advisors were not sharing information routinely about how one can place a nonprofit in one’s Will or estate plan. COVID-19’s unfortunate arrival and many succumbing in the worst cases has underscored the need for everyone to create a Will. It is not that our sector should capitalize on illness and death. Of course not! But we as a sector should be providing options for planned giving, and for the immense wealth transfer coming our way.