Donors looking to make a bigger impact this year, but remain prudent
November 21, 2012
As the economy improves, charitable givers are looking to boost their impact just in time for the holiday season, according to Reuters
. An article that was recently published by the source detailed the philanthropic plans of Denise Koenig and her husband, a couple living in Boston, who are finally feeling secure enough to increase their yearly giving. Koenig explained that for the past five years, her family donated approximately $4,000 per year, but they are ready to contribute more. This year, she plans to use her estimated $50,000 bonus check to open a donor-advised fund.
These small-scale family funds have been gaining popularity as avenues for focused contributions, Reuters adds. They allow individuals making donations to set up giving guidelines and determine a timetable for releasing amounts.
"Donor-advised funds have reached record highs because they are easy to start and use. They enable donors to focus on their philanthropic goals rather than paperwork, board minutes, audits and tax filings," said Eileen Heisman
, president and CEO of National Philanthropic Trust. "Additionally, there is an increasing awareness of this giving vehicle's functionality and flexibility."
This can ensure their dollars are being used effectively for the causes they care most about. Koenig told the source that following the recent credit crunch, her family's gifts feel more precious and they want to use them wisely.
Like individuals who provide annual funding, foundations and organizations might benefit from nonprofit accounting
software to guide their contributions. These platforms can help board members audit funds and make sure the correct amounts are being distributed to various programs each year.