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The volatility of 2022 did not prevent Charityvest from experiencing its highest volume of donations on Giving Tuesday. This was because people who give purposefully, which is when they prioritize charitable giving, increased their contributions.

 

The desire to partner with a charitable organization and make a difference is a powerful motivator for people who give. In a year when charities are facing increasing needs due to rising inflation, the “substitution effect” can occur. This causes donations to become more valuable and thus cause larger ones.

 

The uncertainty surrounding the economy’s future in 2023 suggests that charitable giving will continue to grow. Although the stock market volatility and rising inflation are expected to subside, the likelihood of a recession remains high.

 

Asset-Giving and the Equity Markets

The stock market volatility is expected to subside in 2023, and once it does, the prices of stocks will start to appreciate. This will allow people to take advantage of the tax benefits of asset donating. Awareness of this has reached an all-time high among financial advisers and consumers. As the market begins to recover, it could be a record year for charitable giving.

 

Trust-Based Philanthropy

Through the efforts of philanthropist and philanthropist Mackenzie Scott, thousands of nonprofits have been able to receive unrestricted donations totaling over $14 billion. Through trust-based philanthropy, people can build strong relationships with their charitable organizations. This giving is about building trust between the funder and the grantee.

 

In 2023, major donors will start giving to charities with fewer strings attached. This type of giving will be more prevalent among large and mid-sized donors, foundations, and large grant-making organizations.

 

Legacy Giving

The increasing number of people planning for their legacy will be most prevalent in families with high net worth.

 

It is estimated that over the next 30 years, the amount of money passed down from the Boomers to the Millennials will be around $30 trillion. This will cause the number of people planning for their legacy to increase.

 

Collective Giving

One of the main issues that people are experiencing in the post-COVID era is isolation and disconnection. Many people are looking for communities that they can connect with. Giving can bring people together.

 

The rise of technology has made it easier for people to give, and collective giving is expected to continue growing. There are various types of collective giving, such as collaborative funds and giving circles. These allow donors to combine their giving power and make a significant impact.

 

Financial Advisers

As the number of robo-advisors increases, financial advisers are looking to differentiate themselves from their competitors to win over new clients.

 

One of the most common areas of value-added services that financial advisers are offering is philanthropy. They can connect with their clients and help them significantly impact their financial goals. This type of service is a way for advisers to differentiate themselves from their competitors and allow them to provide personalized service. As more advisers integrate philanthropy into their practice, the landscape will continue to change.

 

 

Although it is unclear what the future will hold for the markets and the economy, we can already see some of the trends that have been building over the past few years. If the year 2023 has less volatility, we will see a significant change in the philanthropic landscape.