As Washington prepares to reduce funding for many nonprofit organizations, most philanthropists foresee a ramping up of private donations, according to Exponent Philanthropy, an association of foundations.
The association, which represents 2,000 foundations, philanthropic families and individual donors, asked members whether the Trump administration policy and budget changes will affect philanthropy.
Based on responses from 324 members of the nonpartisan organization, Exponent Philanthropy says 82 percent of donors expect philanthropy to play a more important role in society as a result of the changes in federal policy.
The federal budget cutbacks will impact giving more than investing, Exponent Philanthropy says in its Pulse Check survey. Respondents said that in formulating their answers they took into account the aggressive congressional agenda, the potential for sweeping policy changes and the unconventional style of the new administration.
The respondents were asked for their thoughts on philanthropy. Some expressed an increased urgency to address funding gaps created by proposed government cuts to social programs. Other comments pointed to a need for greater advocacy around specific causes, says Exponent Philanthropy.
Other respondents spoke of the opportunity for a more vigorous philanthropy sector, driven by the anticipation of robust financial markets, the survey says.
Twenty-two percent expect to make changes to their philanthropic giving in 2017 as a direct result of recent changes in Washington, with the largest portion of that group saying they will increase giving.
Only 9 percent of the grant-makers say they will change how they invest their philanthropic funds. Among those considering investment changes, 63 percent will change their asset allocations, which in part means using impact investing to create positive changes in society.
“Our members have made it clear that regardless of their political leanings, they care about and are impacted by what is happening in government today,” said Henry L. Berman, Exponent Philanthropy’s CEO. “Whether someone sees these changes as rife with risk or possibility, this survey demonstrates a shared commitment among philanthropists to making the world a better place.”