PGDC Analysis of 2010 BofA/Center on Philanthropy Study

According to the 2010 Study of High Net Worth Philanthropy, published by The Center on Philanthropy at Indiana University and sponsored by Bank of America and Merrill Lynch, donors are relying increasingly on their professional advisors to assist them in the design and implementation of their charitable giving plans. The 2010 data finds accountants (67.5 percent), attorneys (40.8 percent) and financial/wealth advisors (38.8 percent) to be among the leading sources of charitable advice, up dramatically from a similar study in 2006. The following chart illustrates the data from the reports released in 2006, 2008, and 2010.

The following chart presents these data in a more dramatic fashion. It analyzes the data in Chart 1 to show the trend regarding whom donors are seeking for their philanthropic planning advice. For example, in 2006, 20.6% of surveyed households sought the advice of their accountant. By 2010, that number had increased to 67.5%, an increase of over 153%.

Consolidating these data, donors are seeking the advice of their professional advisors more by an average increase of 145%, while seeking the advice of nonprofits saw an average decrease of 41.5%. One exception to the advice sought from nonprofits was community foundations, which increased by over 19%. This disparity could be due to the fact that of all nonprofit organizations, community foundations advise donors regarding the destination of their philanthropy as a core component of their mission.

Equally as significant is the percentage of high net worth households that, as a percent of those currently using various charitable vehicles, would consider using or creating them within the next three years.

For example, of all charitable remainder trusts, charitable lead trusts, and charitable gift annuities currently in use, there remains a potential audience for these vehicles over the next three years equal to 51.95% of the total number of vehicles currently in existence.

These data conclude that not only are donors aware of the different types of charitable vehicles and their purposes, they are very open to creating them. It also suggests tremendous unmet demand and opportunity for those rendering philanthropic planning advice.



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7520 Rates:  December 3.6%  November 3.6%  October 3.4%

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