Charitable giving activity nears pre-pandemic levels according to BNY Mellon Wealth Management’s 2022 annual charitable giving report

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NEW YORK, August 17, 2022 /PRNewswire/ — BNY Mellon Wealth Management today released its 2022 Charitable Giving Annual Reportwhich found that charitable donations began to rebound in 2021 after declining in 2020, with the number and total amount of donations increasing (10%) and the average size of donations also increasing (27%).

Positive progress in 2021

Charitable giving activity has broadly returned to historical pre-pandemic trends as many nonprofits have found ways to pivot and discover new approaches to building support for their missions and connecting with donors.

“Financial markets remained strong in 2021 and planned giving activity demonstrated just how sustainable the increase in giving in 2020 was – and even with the current market uncertainty, people aren’t stopping giving” , said Crystal Thompson, Head of Philanthropic Solutions at BNY Mellon Wealth Management. “With the majority of planned giving still being funded in cash, it is important to focus on conversations about valued assets and ownership. There are significant opportunities for nonprofits to maximize giving by working with donors to consider non-monetary donations and create unique gift solutions.”

  • Gift by size: Gifts over $100,000 accounted for 29% of total contracts in 2021, but accounted for 85% of total dollar donations. Gifts between $10,000 and $50,000 accounted for most contracts at 54%, as in 2020.
  • Cash gifts vs non-cash gifts: Cash gifts are still by far the most popular (83%), with non-cash gifts accounting for 17%, almost identical to year-over-year comparisons.
  • Gift flow: The donation flow ratio was 1.09, indicating that new donation activity outpaced donation terminations. This was driven by healthcare organizations which saw an increase in donation flows from 0.68 in 2020 to 2.24 in 2021. Faith-based/religious organizations saw the largest drop from 2.94 in 2020 to 0.93 in 2021.
  • New approval activity: There was a 33% increase in new trust activity year over year, although the total amount of donations decreased and the dollar amount of additions to trusts decreased by 50%.

Thompkins commented: “Although there has been a slight increase in the number of new trusts in 2021, trust activity continues its relatively stable downward trend since the 2008-09 recession, due to the decline in charitable deductions due to the low applicable federal rate (AFR) and donors looking to have a more immediate impact with their donations That said, trusts remain a gifting strategy that can provide solutions to tax and estate planning needs and philanthropic goals, particularly as part of an overall giving strategy.

New donors outnumber regular donors

When donors have access to the right information and advice, they are able to explore more charitable options to achieve their philanthropic goals. While attorneys and CPAs play an important role with donors in terms of executing donations, wealth advisors provide important advice on donor philanthropy.

  • New donors versus regular donors: New donors (51%) outnumbered regular donors (49%) and made larger donations on average (18.5% increase in average donation size).

Donor-advised funds remain a foolproof strategy, according to BNY Mellon Wealth Management client activity

Donor Advised Funds (DAFs) continue to be an important part of the philanthropic landscape and are often seen as the preferred option for charitable giving. According to the report, grants distributed through the BNY Mellon Charitable Gift Fund saw record donation activity in 2021, with the number of donations increasing by 93% and the amount donated by 55%.

“In times of economic uncertainty, when capacity for charitable giving may be limited, donors with DAF are well positioned to provide critical funding to nonprofit organizations when it is needed most,” says Thompkins. “DAFs are used in creative estate and tax planning strategies to promote legacy, family and next-generation giving, which have historically been factors in the creation of private foundations.”

The full 2022 Annual Charitable Giving Report, which includes additional findings from the BNY Mellon Wealth Management Charitable Giving Study and supporting data regarding the Charitable Giving Fund’s record giving activity by BNY Mellon, is available here.

Next Annual Planned Giving Conference 2022
Crystal Thompson will host the next planned giving conference September 14, 2022, featuring an in-depth review of the findings of the 2022 Charitable Giving Report. The annual conference brings together charitable giving planning professionals, nonprofit board members, and advisors working with nonprofit organizations for a series of presentations, panel discussions, peer-to-peer roundtables and opinions from industry experts.

About the 2022 Annual Charitable Giving Report
BNY Mellon Wealth Management’s 2022 Charitable Giving Report assesses the philanthropic landscape, giving levels over the past five years and donor behavior to provide insight, context and benchmarks. This report provides analysis and insights into Charitable Annuity (CGA) and Charitable Residual Trust (CRT) activity in calendar year 2021 for 101 nonprofit organizations and the BNY Mellon Charitable Gift Fund . This includes statistics related to lifetime income or planned giving. Organizations represented included education (56%); confessional (20%); social/other services (14%); cultural (6%); and health (4%). Report data is based on gift records completed in BNY Mellon’s database at March 30, 2022.

About BNY Mellon Wealth Management
For more than two centuries, BNY Mellon Wealth Management has provided services to financially successful individuals and families, their family offices and business enterprises, planned giving programs, endowments and foundations. He has $264 billion of total customer assets at June 30, 2022, and an extensive network of offices in the United States and abroad. BNY Mellon Wealth Management, which provides leading wealth advice in the areas of investments, banking, custody and wealth and estate planning, operates through various operating subsidiaries of The Bank of New York Mellon Corporation. A business of Wealth Management, BNY Mellon Investor Solutions comprises the firm’s institutional multi-asset solutions business. The Investor Solutions AUM/AUA is $25.1 billion of the June 30th2022. For more information, visit www.bnymellonwealth.com or follow us on Twitter @BNYMellonWealth.

Media Contact:
Ben Taner
212-635-8676
[email protected]

SOURCE BNY Mellon Wealth Management

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