Younger Donors More Likely to Say Giving is a Family Affair
BOSTON, June 3, 2014 – A study of the donors who advise on donor-advised funds at Fidelity Charitable, an independent public charity that operates a national donor-advised fund program, gives an unparalleled view into how donor-advised funds are being used for charitable giving. The 2014 Fidelity Charitable Giving Report profiles donor demographics and giving patterns, shares new data on the pace of grants and reports the results of a survey on the role of family in philanthropy.
“We often see families use their donor-advised funds to come together around a common cause, honor a family member, or prepare the next generation to continue the family’s charitable legacy,” said Amy Danforth, president of Fidelity Charitable. “Our donors’ strong commitment to inspiring and teaching the next generation to give is a positive sign for the future of the charitable sector.”
A survey of more than 1,100 Fidelity Charitable donors found:
The survey also identified trends that suggested giving could take on a more central role in families in the future. Younger donors—those under 50:
“Having a dedicated account for charitable giving has helped many donors integrate philanthropy into their total financial picture, fundamentally changing their approach to charitable giving,” said Danforth. “They use their accounts to more easily plan for both short- and long-term charitable giving and to track their progress toward their philanthropic goals. The Giving Report provides an inside look at how our donors give.”
An analysis of the granting behavior of more than 104,000 donors connected to nearly 64,000 Giving Accounts, many of which have more than one individual with advisory privileges, showed the vast majority of donors are actively recommending grants while some also use their donor-advised funds to pursue longer-term giving strategies. The analysis found the:
Donors frequently take advantage of the ability to recommend grants in advance or for distribution on a recurring basis to have a consistent charitable impact for causes they support.
Grants designated to go “where needed most” rather than to a specific purpose are especially welcome by many charities because of the flexibility they provide to help meet urgent needs. Grants designated to be used “where needed most” accounted for:
An analysis of grants by donor age showed that older donors recommend grants across a wider range of charitable sectors than younger donors. Donors under 50 were most likely to recommend grants to the education, human services and religion sectors. Donors older than 50 supported those sectors at similar or slightly increased frequencies, but recommend grants more frequently to charities in other sectors as well.
Fidelity Charitable is an independent public charity that has helped donors support more than 180,000 nonprofit organizations with nearly $17 billion in grants. Established in 1991, Fidelity Charitable launched the first national donor-advised fund program. The mission of the organization is to further the American tradition of philanthropy by providing programs that make charitable giving simple and effective. For more information about Fidelity Charitable, visit https://www.fidelitycharitable.org.
Explore other news and resources, or reach out to us for a media inquiry.