Charitable giving did not increase as much last year as it did during the first full Covid-19 year of 2020, but it still saw a dramatic 20% increase in total dollars donated, according to Schwab Charitable’s 2021 "Giving Report" released today.
The increase in dollars, as well as in the number of grants and the number of charities supported, shows that donors are continuing to rise to the challenges presented by Covid-19, social issues and natural disasters, said Fred Kaynor, the managing director of marketing, business development and strategic partnerships at Schwab Charitable, in an interview with Financial Advisor.
Schwab Charitable donors gave $4.4 billion to charity through 945,000 grants in 2021, providing support for 114,000 organizations, the most ever, Schwab Charitable said.
“We thought 2021 would still be a strong year for giving, but we did not realize how strong it would be,” Kaynor added.
“We have seen a continuing increase in giving and in engagement by donors,” he said. “Schwab Charitable has developed several programs to streamline the giving process and make it as tax efficient and easy as possible. Seventy percent of our donors said they gave more because they were using a donor-advised fund than they would have otherwise.” Eighty-two percent of the grants made in 2021 were automated, which shows the Schwab Chritable programs are successful with clients.
An earlier Schwab study showed that 85% of RIAs offered charitable planning as a value add. “This shows that more clients are prioritizing charitable planning and they are looking to advisors for help in maximizing their giving impact. Clients are looking to advisors for help, and advisors are turning to resources such as Schwab Charitable.”
“After the incredible outpouring of charitable support in 2020, we are humbled and grateful that our donors extended their record-breaking generosity into 2021,” said Sam Kang, president of Schwab Charitable, in a statement. “Our donors showed the power of their generosity with a resolute commitment to increasing support for worthy causes across all sectors and regions.”
Other telling statistics from the past year showed continued growth in the number of people giving unrestricted grants and in the number giving to organizations they had not given to before. Seventy-one percent of the grants made were given without restrictions to a particular expense or project, which provides the recipient charities with more flexibility.
Each Schwab Charitable donor recommended, on average, 11 grants during 2021, and 63% of donors granted to an organization they had not previously supported. Donors also increased the number of grants to organizations recommended by the Center for Disaster Philanthropy, a number that increased by 13% in 2021 over 2020, Schwab Charitable said. The organization provides donors with lists of charities recommended by the Center for Disaster Philanthropy, charities supporting relief and recovery efforts for various crises across the world, including wildfires, tornadoes, hurricanes and other natural disasters, as well as humanitarian and health crises.
Schwab Charitable also provides educational tools and resources to support donors, advisors and nonprofits. The "Giving With Impact Podcast" series, developed with Stanford Social Innovation Review, brings together leading voices from across the philanthropic sphere to engage in both aspirational and practical conversations on achieving more effective philanthropy, Schwab Charitable said.
The Schwab Charitable Giving Guide is an interactive giving planner. The Advisor Resource Center is a tool kit for financial advisors who want to provide clients with a comprehensive structure for developing their giving strategy based on their clients’ philanthropic goals and priorities. The Fundraising Toolkit for Nonprofits is a web resource that offers tips for raising funds and growing a donor base with donor-advised fund account holders.