3 Trends Shaping Philanthropy In 2022
In 2022, the world will be experiencing three trends that will significantly affect philanthropy. These include social media, impact investing, and donor-assisted funds.
Giving to arts, culture, and humanities grew by 27.5%
GivingUSA’s 2022 report outlines giving trends in the United States for the coming year. The study provides information about charitable donations that can be used to develop nonprofit fundraising strategies.
The data provides an excellent window into the giving landscape. It is important to note that the report needs to address philanthropy’s cultural and social impact.
The report notes that total charitable giving increased by 9.4% from 2020 to 2021 but remained flat for eight subsectors. Education saw the most decline, down 2.8%, while human services saw the most growth, up 9.3%. However, the most significant boost came from a strong stock market, which bolstered personal disposable income.
Donor-assisted funds are the fastest-growing charitable giving vehicle
Donor-advised funds are among the fastest-growing charitable giving vehicles in the U.S., according to the Donor-Advised Fund Report released by the National Philanthropic Trust (NPT). The report analyzes data from 995 charitable organizations.
A donor-advised fund is a philanthropic giving vehicle that enables donors to recommend grants to a nonprofit organization over time. It’s a simple, tax-advantaged way to support a charitable cause. A donor can choose to contribute cash, securities, and other assets using a DAF. These gifts are invested for tax-free growth.
With a donor-advised fund, there are no upfront costs or record-keeping responsibilities. Donors can recommend grants from their DAF to charities of their choice. Unlike charitable foundations, donors do not have to return their donations to the sponsoring organization.
Social media is a must for nonprofits
Consider a social media strategy if you’re a nonprofit trying to grow your online community. These days, you need to have an engaging and consistent presence across social platforms.
For a start, you need to identify your target audience. Not only will you have to engage with them, but you’ll also have to learn what types of content they’re looking for.
One of the best ways to engage your online community is to have fun. Nonprofits should have a social media plan that involves a lot of fun. This will help you stay engaged with your supporters and encourage your audience to get involved.
5G infrastructure makes it easier for smartphone users to connect to web-based mobile apps
With the advent of 5G infrastructure, smartphone users will have an easier time connecting to web-based mobile apps. This is a critical element of the digital transformation taking place in our world. It will increase the productivity of developers and users. This will impact how we live, work, and play.
Compared to 4G, 5G promises increased data transfer rates, lower latency, and greater scalability. These features can help users access high-definition video streaming, augmented reality, and virtual reality. The technology will also reduce energy consumption. And while the current generation of smartphones has already made it possible to experience these features, 5G will allow them to scale down in power and mobility.
Young professionals approach philanthropy with both monetary donations and by directly engaging the community
One of the fastest-growing philanthropic sectors is the younger generation. Younger donors are more willing to donate to nonprofits and are more likely to volunteer. As such, nonprofits need to align their charitable giving strategy with the interests and needs of young professionals.
Young donors are also more likely to watch online videos before making a gift. Therefore, nonprofits should consider adding video content to their website to communicate with visually oriented donors.
Young professionals also give through crowdfunding. These events allow young donors to pass directly to causes they support. Crowdfunding is an effective way to make a significant impact, regardless of the donation size.
Virtual and online attendance options for fundraising or volunteer events
Many nonprofits are recognizing the value of virtual and online attendance options. From hybrid fundraising events to virtual fundraisers, this new breed of event enables nonprofits to boost their visibility, engage their donors, and increase their revenue without the cost or hassle of hosting an in-person event. While technology has been around for some time, many need to be made aware of its possibilities. Having a comprehensive plan in place is key to leveraging these opportunities.
Several online platforms, mobile apps, and social networks have been optimized to facilitate fundraising and volunteering. These tools provide a centralized location for donors and volunteers to interact. It’s also easy for organizers to manage attendance from anywhere.
Impact investing is a promising option for corporate philanthropy
Impact investing can be a great way to make financial returns while also doing good. There are many factors to consider when making this type of investment.
The first step is to identify a cause area that you’re interested in. Choosing the right one can significantly increase your impact. Some rooms include global health, poverty reduction, mental health, and the environment.
You may also want to consider companies with low carbon footprints, companies that employ veterans, and companies with gender equity in their workforces. Having a solid network can be a helpful way to identify these opportunities. It is also essential to have an effective strategy to communicate your goals.
