As the tax year draws to a close and the holidays evoke feelings of goodwill, nonprofits count on getting the lion's share of donations during this crucial fourth quarter. While unemployment stats in recent months have been better than expected, experts predict a difficult end-of-year climate for nonprofits.
Year’s end is just about upon us, but when it comes to tax-planning, there is much to be done before breaking out the bubbly. For non-profits and your favorite charities – the ones that have survived these past few, hard years – this could be a make-or-break giving season.
Why would this December be an especially trying time for charities? US News and World Report offered their own pithy list not too long ago and it’s worth a pause: “Nonprofits Face Challenging End-of-Year Giving Season.” Simply put, at a time when the services of charities have been needed more than ever (with hurricanes, droughts, and winter storms all taking their tolls during a sluggish economy) charitable giving has, understandably, been less than “generous.” That said, as a recent article published by the Chronicle of Philanthropy indicates, the “Average Gift by the Wealthy Has Declined Since 2009.”
If you’re inclined to contribute to a worthy cause before year’s end, you are well-advised to visit with your estate attorney or financial advisor about ways to best leverage your gift both for charitable and tax purposes. There are many strategies available that may make a larger gift more affordable than you think.
References: US News and World Report (November 12, 2012) “Nonprofits Face Challenging End-of-Year Giving Season”
The Chronicle of Philanthropy (October 29, 2012) “Average Gift by the Wealthy Has Declined Since 2009”
For more information on Giving, please visit our Estate Planning website.