Nearly 60% of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to no longer feeling connected to the organization, according to findings of a survey by Bank of America. The study reflects the opinions of nearly 700 respondents throughout the U.S. with household income greater than $200,000 and/or net-worth of at least $1,000,000. Key insights from the new study, conducted by The Center on Philanthropy at Indiana University, indicate that wealthy donors are giving more strategically and are increasingly turning to legal and financial professionals as primary sources for advice about charitable giving decisions. Themes to emerge include: a desire to give back to the community is the leading motivation for giving, not public recognition; families use involvement to pass philanthropic values on to the next generation, who in turn give through their own private foundations as adults; religious organizations are second only to parents as a leading source of philanthropy education; donors expect transparency, accountability and protection of privacy from the non-profit organizations they support.

 

According to the law firm of Perlman & Perlman, LLC, in today's challenging economic environment, where large amounts of wealth are disappearing overnight, the fulfillment of charitable pledges can no longer be taken for granted. Charities, donors and professional fund raisers are increasingly asking whether pledged funds will in fact materialize, and what to do if they do not. Charities have the right to enforce and collect pledges that they have accepted, especially if they have acted in reliance of the promise. With rare exceptions, charities are not required to sue donors, and should consider the long and short term effects that a lawsuit might have on relationships with other donors, and the legal costs vs. the amount that might be recovered. Any decision by the Board not to enforce a pledge should be carefully documented in the Board's minutes or in a resolution. If a charity does decide to enforce a pledge, the case will be treated more or less like an ordinary breach of contract action, and courts tend to favor charities in these disputes. 
 
MOVING? CHANGED JOBS? When your title, business and/or mailing address, email, or any other contact data changes, be sure to go to www.afpnet.org immediately and update your personal record. The Greater Dallas Chapter receives updates monthly, but if you only correct your information locally, then it will be overwritten when we import the latest national spreadsheet into our database.