During a recession, one of the industries that suffers most is charity. When people are worried about their own finances or have less income than they used to have, they naturally do not continue to donate money at the same rate as previously.
Consequently, the total amount of money given to charities has barely risen since the financial crisis of 2008.
Donations have only risen an average of 0.5% per year over the last 10 years. However, experts now expect donations to rise at a much higher rate. The projection is that donations will increase 3.6% in 2017 and 3.8% in 2018.
The increase is anticipated due to the strength of the stock market, increasing gross domestic product, rising wages and an overall better economy.
All of this is reported by Financial Advisor in "Donors Predicted To Give More in 2017, 2018."
A better economy and increased giving to charity are overall positives. However, people should remain cautious and investigate any charities before donating.
It is important to make sure that donations are primarily used for the intended purposes instead of going mostly to administrative and fundraising costs. Donors should consult with charity watchdog organizations.
If you are considering making any large donations, you should consult with an estate planning attorney about how to structure the donation to make sure the money goes where you want and to ensure that the donations fit in with your greater estate plans.
Reference: Financial Advisor (Jan. 13, 2017) "Donors Predicted To Give More in 2017, 2018."