NEW YORK, Sept. 24, 2020 /PRNewswire/ -- A new
study released today by BNY Mellon Wealth Management's Planned
Giving Practice reveals that, despite concerns the 2017 Tax Cuts
and Jobs Act would have a negative impact on the future of giving,
philanthropists increased their support of the non-profit sector
during 2019.
Non-profit organizations represented in BNY Mellon Wealth
Management's 2020 Annual Charitable Gift Report saw an
increase in planned gifts in 2019, with charitable gift annuities
performing particularly well. The number of charitable gift
annuities rose 21% over the prior year and the average gift amount
was up by 56%, suggesting non-profits should consider an increased
focus on marketing gift annuities.
"Charitable gift annuities have remained a consistently popular
way to give. For many non-profits, it is a great way to create
lifetime engagement with donors at all levels of support and can
open the door for deeper conversations about other ways to make an
impact with their giving," says Crystal
Thompkins, National Director of Gift Planning Services at
BNY Mellon Wealth Management.
The study revealed that three quarters (74%) of donors made
gifts to organizations that were outside of the state of their
primary location (up from 66% in 2018), highlighting the importance
of maintaining visibility and registering to issue gift annuities
in states where gifting is the most prevalent.
Of further note, over half of gifts (58%) came from repeat
donors, which underscores that maintaining stewardship efforts is
also critical, particularly given the increased competition for
philanthropic dollars.
COVID-19 Raises Family Estate Planning and Values
Awareness
The study also assessed the impact of the global pandemic on
planned giving. While just over half (51%) of non-profits surveyed
indicated that COVID-19 had negatively impacted their planned
giving efforts, many have turned the challenges of social
distancing and remote work into opportunities to strengthen donor
relationships and mission-focused messaging.
Key shifts that non-profit organizations are making in response
to COVID-19 include changing the tone of marketing messages and
focusing on specific giving strategies. COVID-19 has also
negatively impacted the level of donor-initiated contact, with 40%
of organizations indicating a decrease. Primary reasons for
donor-initiated contact include notifications of bequests and
changes to estate plans or personal conversations.
BNY Mellon Wealth Management's Planned Giving Practice
recommends considering the following operational initiatives for
non-profits:
- Effective digital communications and social media strategy
paired with personal, safely distanced outreach and connection
- Deep expertise in how all legislative changes create
opportunities for donors to serve their families and their values
well
- Leadership development, taking advantage of how COVID-19 has
shifted many professionals' focus to find more fulfilling work
The results of the study were highlighted at BNY Mellon Wealth
Management's Planned Giving Conference, which took place virtually
from September 16 through 18, 2020.
The event is in its 16th year and included an audience
of nearly 250 charitable gift planning professionals, individuals
on boards of non-profit organizations and advisors working with
non-profit organizations.
Hosted by Crystal Thompkins,
National Director of Gift Planning Services, the theme of the event
focused on "elevating planned giving," and featured live keynote
presentations, panel discussions and insights from industry experts
on the current landscape and the future of planned giving. Topics
included new and meaningful ways for non-profits to connect with
supporters, implications for charitable planning under the SECURE
and CARE Acts, key fiduciary duties for non-profit trustees and
managing the pressures on planned giving due to the global
pandemic.
Thompkins reflected on the event and commented, "There is an
increased focus on legacy and intergenerational giving through
estate plans. The increased deduction for cash gifts in 2020 and
the impact of low interest rates are also leading many non-profits
to focus on split-interest life income gifts that provide current
benefits to donors who want to both make an impact and be assured
of financial security. Despite these incentives, however,
non-profits are concerned about the impact of the economy and
election on support for their organizations."
A replay of the conference is available at BNY Mellon Wealth
Management's BrightTALK channel or the Planned Giving
Conference website.
About the 2020 Annual Charitable Gift Report
BNY Mellon Wealth Management Planned Giving's 2020 Annual
Charitable Gift Report assesses the planned giving
landscape, levels of giving and donor behavior to provide insights,
context and benchmarks. The report provides analytics and
observations on charitable gift annuity and charitable remainder
trust activity for over 100 non-profit organizations, as well as
insights gained from BNY Mellon's Planned Giving clients on gift
acceptance policies and donor behavior. A client survey exploring
the impact of COVID-19 on gift planning took place in April 2020 and included feedback from 35
non-profit organizations including education, faith-based, social
services/other, cultural and healthcare organizations.
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, and endowments and foundations. It has
$254 billion in total client assets,
as of June 30, 2020, and an extensive
network of offices in the U.S. and internationally. BNY Mellon
Wealth Management, which delivers leading wealth advice across
investments, banking, custody and wealth and estate planning,
conducts business through various operating subsidiaries of The
Bank of New York Mellon Corporation. For more information go to
bnymellonwealth.com or follow us on Twitter @BNYMellonWealth.
Media Contact:
Ben Tanner
212-635-8676
Ben.tanner@bnymellon.com
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SOURCE BNY Mellon Wealth Management