The 2010 PNC Wealth and Values Survey paints a gloomy picture for charitable giving. One in four wealthy Americans have cut their giving in the past two years. Yet, more than half say they "feel an obligation to give back to their communities."
The report also points out several recent philanthropic trends. One in five donors changed the type of organizations or causes they support.
The size of the biggest charitable donations have also dropped. One-third of all donations range from $25,000 to under $1 million now. Gifts of $1 million or more have shrunk to less than 1% compared to 15% two years earlier.
Bruce Bikel, head of private foundation management services and senior vice president of PNC Wealth Management was featured in an article by the Wall Street Journal recently. Bruce recommends that philanthropists should take the emotion out of giving and focus on "mission-mindedness to help with the adjustment." This includes creating a points-based scoring system to grade each potential on a scale based on how the gift would fulfill their mission statement.
While I believe this strategy helps donors focus their limited funds based on a defined mission statement, I wonder how satisfied donors feel. One primary motivation for making a charitable gift is the passion associated with a cause or organization, or a connection with the beneficiaries. By taking out the emotions, the only things left are tools. How effective and long can giving-back last if the emotional bond and compassion is no longer associated with the act?
Photo courtesy of Woodlouse
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