An earthquake hits halfway around the world in Nepal. Thousands are killed, hundreds of thousands are left homeless and entire villages are flattened.

This disaster happened in the spring of 2015, and Americans, as well as people from other countries, immediately reached into their pockets to help. 

Whenever and wherever a disaster strikes, people feel a need to help by giving to charities and nonprofits to benefit the survivors. But giving to those suffering from an event like the two earthquakes in Nepal is just the tip of the iceberg when it comes to charity, according to a number of financial advisors and the USA Giving Foundation. Charitable giving is up across the board.

Americans gave an estimated $358.38 billion to charity in 2014, surpassing the amount given in 2007 for the first time since the Great Recession. In inflation-adjusted dollars, Americans gave $355.17 billion in 2007. Since then, it has been a slow climb out, but giving has increased for five years in a row now and went up 7.1% between 2013 and last year.

According to Giving USA 2015: The Annual Report on Philanthropy for the Year 2014, the nonprofit sector saw increases in almost all areas and can now focus on expanding rather than regaining lost ground. The report is prepared annually by the Giving USA Foundation and the Indiana University Lilly Family School of Philanthropy.

“The growth can be attributed, in part, to the ways charities have been working smarter during daunting times. Nonprofits increasingly are making sure they have strong cases for support, communicate frequently with donors and provide proof of the impact charitable gifts make,” says W. Keith Curtis, chair of the Giving USA Foundation and president of the Virginia Beach, Va., nonprofit consulting firm the Curtis Group.

Through technology, nonprofits are making it easier to check their credentials and making a better case for their good works, say advisors. “After the Boston Marathon bombing in 2013, people felt helpless and wanted to do something. It was easy to go to the Internet and find ways to give,” says Paul Saganey, president of Integrated Financial Partners in Mount Laurel, N.J. “What once was considered cumbersome, in finding ways to give, is now easy. Charities are getting their message out more effectively now.”

Different generations direct their generosity in a variety of ways. The goals of younger people who give to charities are somewhat different than those of older philanthropists, according to advisors.  “We see the adult children of some of our clients approach giving differently, but no matter who they give to, it is great for the advisor to get them involved,” says Kimberly Bernatz, senior vice president and director of wealth management advisory at First American Trust in Santa Ana and San Diego, Calif., and Las Vegas. “Young people give smaller amounts to local charities and individuals. They are less aware globally.” 

The types of things given to charities and projects the assets go to are taking unusual turns, the advisors note. “One client of ours in Orange County [California] created a charitable trust and is funding scholarships in the high school where her deceased brother went to school,” Bernatz says. “This type of giving changes the relationship between the advisor and the client. There is a lot of opportunity for the advisor to help in these situations.”

For Nancy Overton, head of the Jacksonville, Fla., office of Beverly Hills Wealth Management, the charity recipients for some clients changed after the Women’s Giving Alliance was started there. “We felt women should be more involved in where their money goes and the recipients changed as women became involved. There are more donations now to homeless women, juvenile justice projects for young women offenders and to fight human trafficking in women,” she says.

Most charitable giving categories, such as education, human services, animal treatment and environmental causes, are up. Only religion has tapered off. Contributions to religion fell by 0.9% between 2013 and 2014 (when adjusted for inflation) while other categories grew, Giving USA reports, because fewer people are identifying themselves with a religion. However, religion still receives the most in donations.

It does not have to be just money or appreciated assets that go to charity. What is given can depend on where you live in the United States, according to Kent Kramer, chief investment officer and lead advisor at Foster Group in West Des Moines, Iowa. 

“In Iowa, farmland is a big asset, and some of our clients are gifting farmland in trust so that it remains farmland and the client gets the charitable donation credit,” Kramer says. “Clients are also giving more locally. We have Meals from the Heartland here in Des Moines that is a popular recipient, as well as local Habitat for Humanity projects.”

Whether it is a collection of weather vanes or highly appreciated stock inherited from a grandmother, the urge to turn the asset into a charitable donation is more likely to be sparked by a passion for the charity than a desire for a tax deduction, advisors say. But the advisor can still help the client get the most advantage out of the donation.

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