Eduventures Principal Analyst Cara Quackenbush discusses five signs that 2013 will be the year that higher education philanthropy finally recovers from the recession.

1. The Recovery of Higher Education Philanthropy
Five reasons why 2013 will be the year colleges and
universities finally rebound from the recession

2. Following a painful drop in 2009 and 2010, higher
education philanthropy is on a positive trajectory.
Source: Council for Aid to Education, Voluntary Support of Education Survey; Giving USA,
Annual Report on Philanthropy, 2011

3. Million dollar gifts are back, growing
significantly since 2010.
Total Number of $1M+ Gifts, 2006-2012
506
460
379 404
375
284
231
2006 2007 2008 2009 2010 2011 2012
Source: Chronicle of Philanthropy, America’s Top Donors

4. The largest driver of million-dollar gifts – the stock
market – has rebounded. In July 2012, the Dow Jones
closed up 100% from its bottom in March 2009.
Source: Center for Philanthropy, Million Dollar List

5. The tax environment is encouraging giving
for the following reasons:
• Charitable
deduc.on
rates
(and
the
corresponding
tax
rates)
were
raised
on
high-­‐income
earners,
providing
more
incen7ve
to
give
to
charity
in
2013
• The
IRA
charitable
rollover
returns.
Good
news
for
the
growing
number
of
our
more
“seasoned”
donors
who
like
making
tax-­‐free
giEs
directly
from
the
IRA,
in
a
surprise
addi7on
to
the
ATRA
legisla7on
these
giEs
have
been
extended
through
Dec.
31,
2013.
• Estate
tax
deduc.on
changes.
Permanent
extension
of
the
estate
tax,
exemp7ng
the
first
$5
million
of
an
estate
and
taxing
the
remainder
at
a
40%
rate,
indexed
for
infla7on.

6. Unemployment, and other economic concerns, are
becoming less of a factor.
Unemployed, Looking for Work
7.8%
4%
3%
2%
Current
Donor
Lapsed
Donor
Long-­‐Lapsed
Donor
Na7onal
Unemployment
Rate
Source: Eduventures Alumni Pulse Survey: Trending Drivers of Higher Education Philanthropy 2013

7. Want more?
Read the full article on the subject at
http://bit.ly/higheredrecovery