Over $400 Billion of Capital Gains Will Help Nonprofit Fundraising

Over $400 Billion of Capital Gains Will Help Nonprofit Fundraising

by Tom Wilson Major Gifts Guru

A recent article in The New York Times "Smart Giving in a Troubled Climate" author David Kay Johnston noted that $426 billion of capital gains will be realized in 2009 compared to $875 billion in 2007.

While this is a dramatic decrease, that is still a lot of liquidity going to individuals who can make gifts.

The article also quoted Professor Peter Frumkin, sociologist at the Lyndon B. Johnson School of Public Affairs at the University of Texas and author of Strategic Giving: "In tough times people tend to gravitate toward direct service becasue they want something concrete from their giving."

The article suggests 3 ways for donors to adjust their giving.

• Conversion -- if you have an endowment pledge tell the organization in writing that you wish to convert your pledge payments to operations as they need the money now
• Deferral -- if you have a 5-year pledge tell the charity that you need another year or two to complete the pledge
• Triage -- cut back your giving to charities you feel make the biggest impact

As a major gift officer, you may want to mention these strategies to your donors as a favor and to help them see what you should be on their ongoing short list of preferred charitable destinations.

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