Many who give to charity do not know about the range of giving vehicles that are available to them, says Fidelity Charitable in a study released Tuesday.
Only 36 percent of donors know about donor-advised funds, 37 percent know about qualified charitable distributions from an IRA and 42 percent are aware of community foundations, according to Fidelity Charitable, which is the nation's largest donor-advised fund.
“Our research uncovered remarkably low awareness and use of the full range of tax-advantaged giving methods,” says Matt Nash, senior vice president of donor engagement at Fidelity Charitable. “This giving gap may limit potential savings and prevent people from giving more to the deserving charities they support.”
Ninety-two percent of the 950 donors surveyed say charitable giving is equally or more important to them than other financial priorities. About half say they donate financially to charity using only cash, checks or credit cards.
While nearly 80 percent own appreciated assets, such as stocks, bonds or real estate, only 21 percent had ever contributed those assets to charity. In addition, nearly 90 percent of donors had a retirement plan or life insurance policy, but only 9 percent had named a charity as a beneficiary of the plan.
The survey also shows that retirees give to more charities than people working full time, but are less likely than full-time workers to feel confident they can give at the same level in the future.
Donors under age 50 are more likely to use efficient charitable giving methods than their older counterparts, despite their lower overall wealth.
Fifty-three percent of charitable donors have discussed charitable planning with an advisor, according to the study.