What Drove Americans to Increase Charitable Giving in 2022?
“Advisors are uniquely positioned to help donors give more efficiently through tax-smart contributions and strategies to maximize their impact on those in need,” Fred Kaynor, managing director of business development, marketing and strategic partnerships at Schwab Charitable, said in a statement.
One important consideration in charitable planning is evaluating which assets to give. In fiscal year 2022, 61% of contributions to Schwab Charitable were in the form of noncash assets, including publicly traded securities, restricted stock and private business interests.
Donating appreciated noncash assets to charity allows account holders to potentially eliminate capital gains tax they would otherwise incur if they sold the assets first and donated the proceeds, which might increase the amount available for charity by up to 20%, according to the report.
Fidelity Charitable
During the first six months of this year, Fidelity Charitable donors recommended nearly one million grants to charity totaling a record $4.8 billion, an 11% increase in grant dollars over the same period last year. The increase in the first half followed a record-setting $10.3 billion granted in 2021.
“Despite rising inflation and market volatility, Fidelity Charitable donors have continued to lead with generosity and are providing record-high support to nonprofits,” Fidelity Charitable president Jacob Pruitt said in a statement. Pruitt succeeded Pamela Norley as president in October.
The humanitarian crisis in Ukraine was a major driver of grantmaking in the first half of 2022. Donors recommended more than $128 million in grants specifically earmarked to Ukraine aid efforts.
Fidelity Charitable noted that organizations providing assistance to refugees have seen significant spikes in support. For example, International Medical Corps saw a more than tenfold increase in the number of DAFs that recommended a grant, compared with the first half of 2021. Similarly, the number of accounts supporting World Central Kitchen grew more than fivefold.
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