Economic Recovery May Lead to Increased Charitable Giving

Charitable giving has been stalled since the 2008 financial crisis, but an upturn is expected.

Charity suffers during economic downturns, but a rebound is anticipated, according to the Financial Advisor in "Donors Predicted To Give More in 2017, 2018."

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. This has resulted in the total amount of money given to charities stalling since the financial crisis of 2008.

Donations have only risen an average of 0.5% per year in the past decade. 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.

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.

An estate planning attorney can advise you on donations, as part of an estate plan that meets your unique circumstances.

Reference: Financial Advisor (Jan. 13, 2017) "Donors Predicted To Give More in 2017, 2018."