The success of this year’s Giving Tuesday in increasing both the amount of money raised and the number of contributors has encouraged growing optimism about end-of-year giving. Although donor-advised funds and social media vehicles have generated more year-round – and often spontaneous – giving, December continues to bring in a significantly higher percentage of nonprofits’ revenue than any other month.
Tax considerations certainly play a role in spurring increased giving, whether for individuals thinking about itemized deductions or foundations ensuring their charitable expenses meet mandatory payout rules. But there is also something less “Grinchy” at work when year after year, donors respond enthusiastically to appeals made in the season of celebration and goodwill.
End-of-year gifts – whether cash or in-kind – may come from informal family sit-downs to discuss local needs. Giving circles often choose this time of year to pool resources and decide on one or more donations. Salvation Army kettles may spur spontaneous gifts of loose change up to the record-breaking $500,000 check found in 2015 in Rosemount, Minnesota. Donors may also choose this time of year to make annual gifts to their faith communities, or give back to a hospital or hospice which served a family member or friend.
Individual and institutional donors interested in issues affecting broader geographical areas and population groups may seek advice from trusted sources. Philanthropy Roundtable offers advice on organizations addressing a number of issues in a manner aligned with the Roundtable’s core values of liberty, opportunity and personal responsibility with resources on our website. Topics include:
- Mental Health – The Mental Health Playbook profiles 15 organizations offering holistic care by supporting preventive interventions, access to quality care and common-sense solutions to propel healthier individuals, families and communities.
- Civics Education – The Civics Playbook features 12 organizations offering civics education which give donors the opportunity to invest in curriculum and teaching materials, teachers and experimental learning to promote broad-based civic engagement that emphasizes traditional American values.
- Veterans – This values-based giving story provides advice and examples of organizations helping veterans access high-quality employment in the civilian workforce.
- School Choice – This values-based giving story (which includes a link to a follow-up article) provides advice and examples of donor investments in both parent engagement and infrastructure organizations that support school choice and strengthen existing charter schools around the country.
- Arts and Culture – This profile of the Center for American Culture and Ideas offers insights into how donors might think and evaluate arts and culture organizations being considered for support. See also this profile of Lincoln Jones.
End-of-year donors may find this a good time to ask charitable organizations where they find themselves short on capacity to deliver their services effectively. Gifts in this area are frequently made to bolster leadership, financial responsibility and fundraising. This year, consider questions about cybersecurity. Large and small nonprofits alike are now frequent targets for ransomware attacks, data breaches (including donor privacy violations), phishing and social engineering attacks. Inadequate IT infrastructure and simple human error are common risk factors. The financial and reputational costs of such breaches are high, as this article notes. Gifts to strengthen an organization’s ability to prevent such losses are likely to be much appreciated.
Finally, as we close out 2024 and look ahead to a new year, consider finding one new organization to support this season. Consult with family members, friends or other trusted advisors to learn about a rising need in your community or a different way of addressing a long-term problem. You can start small, perhaps anonymously. Surprise gifts are always welcome – especially in this giving season.
If you have any questions on our donor-advising services, please contact our Programs and Services Team.
