Colleges received more in charitable gifts in 2013 than ever before in history, including a record number of gifts above $1 million, and that bodes well for planned gifts as well.
The record-setting year is attributed to the record-setting stock market, and when a market rebound like that occurs, people not only have more money but feel wealthier. According to research, even high net worth donors (those with estates of $25 million+) must “feel” wealthy in order to give. And when the stock market is up, chances are donors will feel wealthier.
In fiscal year 2013, America’s colleges and universities received $33.8 billion in charitable contributions, almost 10 percent more than 2012, according to a survey by the Council for Aid to Education. The previous record of $31.6 billion was set in fiscal year 2008, just before the latest recession.
“Between the first and last trading days of the academic fiscal year, the major stock indexes increased by double-digit percentages,” states the report.
The council’s annual “Voluntary Support of Education” survey collects information from more than one thousand institutions, looking at gifts received from individuals, foundations, and corporations. Alumni giving was up the most, about 17 percent. Many of those individuals are prime prospects for planned gifts as well.
Individual gift sizes for the calendar year 2013 were analyzed by fundraising consulting firm Marts & Lundy using data from the Chronicle of Philanthropy and the Chronicle of Higher Education. In 2013 there were 532 gifts of at least $1 million, excluding bequests, breaking the 2007 record of 506 and way above the 2012 total of 405. The 34 mega-gifts of at least $50 million came close to the 2007 record of 36; there were only eight in 2012.
“Support by the very rich for all types of nonprofit organizations, but especially for higher education, has come roaring back,” states the Marts & Lundy report.
Marts & Lundy attributed the rise in philanthropy to “faith in the market and faith in an improving economy.” That faith should translate to planned gifts as well. You will want to be sure to rev up your planned giving marketing efforts in order to capture the portion of fundraising dollars that will clearly be available in the form of planned gifts as the economy continues to recover in 2014, and Pentera can help. Contact us today.
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