The past two years have relatively been predictable. As 2022 approaches, there’s still uncertainty among many people. It is not clear whether the COVID-19 pandemic will come to an end or if things will get worse. Many organizations and individuals have come out to support the vulnerable in society.
The pandemic led to increased philanthropic activities across the world. Millions of people became vulnerable after losing their jobs and sources of income.
Below are the biggest trends in philanthropy 2022:
- Shorter strategic plans
It has always been standard practice to have five-year strategic plans. This trend is likely to change and more people and institutions will have shorter timelines. The pandemic taught many people the importance of being nimble. This is why most organizations and institutions have resorted to having shorter plans and shorter timelines.
- Congress is not going to act
While this prediction may not sound good, it is very unlikely that Congress is going to pass any legislation to encourage philanthropic activities through tax breaks. The tax breaks that were enacted during the pandemic are expiring and there is no indication of renewing them.
- Fewer donors, bigger gifts
This trend is not new in the philanthropy world. Since 2008, there has been a consolidation of giving and 2022 is unlikely to bring any major changes. Mid-level giving that came about because of the 2017 American tax cuts is expected to continue being eroded.
It is dependent on fundraising professionals to ensure that there is philanthropic growth at every giving level. Donor retention should be emphasized in order for lower-level donors to get opportunities to advance to mid-level and major gift donors.
- Increased corporate engagement
Corporate giving is a bit complicated. It involves altruism, marketing as well as defeating negative publicity. As social justice and diversity continue to be the major topics of discussion, more corporates are going to engage in more philanthropic work.
There is a lot that can be achieved through strategic partnerships between organizations. Many people tend to prefer working or associating themselves with organizations that are involved in the community. This trend will continue as the new year begins.