The Recovery of Higher Education Philanthropy Five reasons why 2013 will be the year colleges and universities ﬁnally rebound from the recession
Following a painful drop in 2009 and 2010, highereducation philanthropy is on a positive trajectory. Source: Council for Aid to Education, Voluntary Support of Education Survey; Giving USA, Annual Report on Philanthropy, 2011
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 2012Source: Chronicle of Philanthropy, America’s Top Donors
The largest driver of million-dollar gifts – the stockmarket – has rebounded. In July 2012, the Dow Jones closed up 100% from its bottom in March 2009. Source: Center for Philanthropy, Million Dollar List
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.
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
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