Wednesday, September 14, 2016

The Race to the Finish!



If my present prognostications hold 2016 will be a banner year for philanthropy in at least four  ways:

1.  The $375 billion contributed in 2015 will be surpassed.

2.  Foundation philanthropy, a modest percentage of all giving, is nonetheless an important trend-setter. Many large, medium and small foundations are now beginning to see that there is is  no such thing as "no overhead." Nonprofits incur annual, routine operating expenses for labor (the greatest cost); occupancy; materials, and often, debt service. The idea that only supporting "program" (read labor and materials) is somehow more efficient and effective than general operating support is gaining traction. Finally.

3.  My view: Neither major party candidate is going to disturb the charitable contribution deduction, throat clearing noises in Congress to the contrary.

4.  Donor advised funds will continue to grow apace. Depending  on your perspective this may or may not be a good thing. The good thing is that it has brought many new high net worth people into philanthropy (not necessarily altruistically. But still.) This The not-so-good result is that much of that money sits, tax-free and tax-deductible to the donor, undistributed to charities.

This election is a dreadful distraction from our country's real problems, for example, the relentless intractability of  poverty in the world's wealthiest nation. Fueled  by network and cable TV whose interests in creating tension and protracting the agony so they can sell us more stuff is not pretty.


Despite that, the generosity and optimistic spirit of the American people continues to amaze and inspire me and keeps me at this work. What I have learned from my fellow Americans is that  the world can indeed be a better place.

1 comment:

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