There’s no escape from it: times are tough, very tough, for many millions of people across the world.
In the current economic climate, where every penny of income and expenditure is carefully scrutinized, the sad fact is that Charitable Donation is more often than not the first financial cutback made, to the detriment of those who benefit most.
But whilst the global recession is here to stay for some time to come, what does the future hold for philanthropy?
With this in mind, here are a few long-term predictions:
1)Tax Breaks From Philanthropy. Given the low investment returns available through conventional financial instruments, wealthy Investors seeking alternative methods of off-setting their tax bill may find Philanthropy an attractive option.
2) Long-term inflation rises: Whilst the current rate of inflation approaches all-time lows, the near-certainty of future inflationary pressures could have a detrimental effect on the real purchasing power of donations
3)Greater pressure on donations from longer-living people: With the advances of medicine and science, and the ever-increasing cost of day-to-day living, many first-world donors will find themselves living longer, and spending more money on day-to-day living, leaving less spare cash for charitable donations.
4) Increased Estate Taxes: with governments ever more desperate for cash to fund their policies, the death duties payable on the estates of the deceased are a prime target for higher levels of taxation. Therefore, with the tax-grab increasing by the week, there’ll be less money left for other people, including charitable groups.
5)The drive for more tax-efficient charitable organizations: The global economic downturn doesn’t just affect the corporate world: far from it. With the twin consequences of recession, layoffs and hiring freezes in the charitable sector, and an ever more complicated donation system (and the need to educate the public as to how such gifts can be made), the financial landscape demands of charities a clear strategy, a laser-beam focus, and a creative approach to education, fundraising and implementation of their overall goals.
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