Philanthropy Gerald Blakely Management 493K

Generosity is on the rise In 1999 Americans gave $190 billion to charities More than half of adults volunteer (109 million volunteers) averaging 3.5 hours per week

Giving as a % of GDP YearGDP

Benevolence is growing The number of foundations has more than doubled since /5 of the largest foundations were created during the past two decades –Gates Foundation ($22 billion) –Soros Foundation ($2 billion) $41 trillion in inheritances over the next 50 years with much of it to charities

Seventy % of households contribute to charity with an average family gift of over $1,000 Socially responsible mutual funds –$162 billion in 1995 –$1.4 trillion in 1999

Your charitable giving You should have a strategy –Think systematically about your giving –Develop your own mission –Check out Guidestar and Give.orgGuidestarGive.org Consumer-oriented yardstick is that the non-profit should put 75%+ towards program costs

How much can you give? Typically giving is between 1.5% and 2% of income Best to incorporate charitable giving thoughtfully into money habits and lifestyle goals instead of worrying about how much is enough Critical question - How active do you want to be with your giving?

Donating cash and stock Contribute StockSell Stock Amount of Donation$5,000$5,000 Charitable Deduction$5,000$5,000 Income Taxes Saved$1,800$1,800 Capital Gains Tax $0 $800 “Cost” of Donation$3,200$4,000

Other ways to share Make a will Charitable fund through a mutual fund Community foundation Private foundation Charitable remainder trust or some variation Life insurance Retirement plans