It’s been a big week, and many in the non-profit sector are trying to predict the future. THG has been serving this industry for over 40 years, and we’ve picked up some things along the way. Along with our partners at Candid, and some sage wisdom from Fidelity Investments, we think the application of key elements within our trademarked methodology of Hyper Philanthropy will help you end your year strong and plan for your future with greater certainty.
For the past 70 + years, the US Market has risen an average of 9.1% during an election year. While previous performance doesn’t predict future performance, it’s a very reliable piece of data that can work on your behalf in a variety of ways. Presuming you have individual donors who understand and support your strategic goals and enjoy investing in their successful outcome, you may have an opportunity to discuss a transfer of stock for their end-of-year donation. Furthermore, if they are 70 ½ and older, they can direct all or part of a Required Minimum Distribution as a Qualified Charitable Distribution. This is coming directly from their retirement portfolio, which may be in a strong position to be supportive to your cause.
As a word of caution, non-profits risk a decline of philanthropic contributions during election years, especially in swing states. It seems counterintuitive to what many of us understand as a strong correlation between civic engagement and philanthropy. This emerges due to tried-and-true donor fatigue resulting from the onslaught of advertisements and other means of attention seeking that literally exhaust donors’ attention spans and, in some cases, their wallets. By understanding behavioral economics, you can mitigate this phenomenon with empathy and express it across the entire culture of your organization.
Now is the time to begin a strong communications strategy with your individual donors. Make sure they all understand how their support to your organization will make an impact and pave the way to bright future. Choose a variety of methods and reach out personally as often as possible.
Let us know if we can help, and contact us if you are ready to get Hyper about Philanthropy!