CHARITABLE PLANNING

Hannah Shaw Grove

Keep these trends in mind if you want to help wealthy donors turbocharge their impact .

ECHNOLOGY IS CHANGING CHARITABLE GIVING , AND IT can play a powerful role in helping your high-networth clients deploy their charitable capital as effectively as possible .

The Covid-19 pandemic accelerated digital transformation in the private sector as companies incorporated remote functionality into their tech infrastructure to stay afloat . Now that disruption is trickling down to the nonprofit sector , creating a variety of opportunities for philanthropists to drive social change and improve the world for millions of people .

The broader philanthropic ecosystem relies on constant , effective engagement between donors and grantees in order to function . When those interactions become fragmented , protracted or unproductive it can have a downstream effect on the schools , hospitals , religious institutions , museums , disaster relief efforts and other charitable organizations that rely on external funding to operate . For these reasons , it ’ s critical for all the participants in the ecosystem to explore software , platforms , tools and general resources that can augment core infrastructure and operations , while facilitating connections and minimizing friction .

According to Giving USA , individuals contributed $ 324.1 billion to charitable causes last year , accounting for 69 % of giving , while family and corporate foundations made $ 88.6 billion in grants , which made up 17 % of gifts .

This type of overhaul may seem like a costly undertaking , especially in areas that have limited IT budgets and are fee-sensitive , but being tech-forward will pay off later on .

The good news is that tech solutions abound as vendors and providers focus on streamlining the experiences of key stakeholders such as seasoned philanthropists , individual donors , charities and other types of grantees , each of whom face different , interconnected challenges .

According to Giving USA , individuals contributed $ 324.1 billion to charitable causes last year , accounting for 69 % of giving , while family and corporate foundations made $ 88.6 billion in grants , which made up 17 % of gifts .

Whether your client base includes individuals who give on the spur of the moment , families who pursue their charitable interests together , or seasoned philanthropists with sophisticated , long-term granting strategies , you can benefit by knowing these six trends , which can help you and your clients navigate this rapidly changing landscape and maximize the potential for social impact in the coming years .

1 . Automation is simplifying operations and limiting costs .

Cloud-based digital processes and artificial intelligence foster seamless giving ,

SEPTEMBER 2022 | FINANCIAL ADVISOR MAGAZINE | 23