Incoming contributions rose for the fourth year in a row while outgoing grants rose for the third straight year, making 2012 a record year for both measures of donor activity, Fidelity Charitable reported Tuesday, citing last year's improved stock market, economic conditions and uncertain tax climate.
In 2012, donors recommended more than 428,000 grants totaling $1.6 billion, up 13% from a year ago, and contributed $3.6 billion for charitable accounts. Boston-based Fidelity Charitable is an independent public charity that has helped donors support more than 160,000 nonprofit organizations with more than $14 billion in grants since 1991. Both dollar figures represent a 24% increase compared to 2011. The number of new charitable accounts rose 32% compared to 2011.
Advisors' donor relationships continued to influence the majority of contributions. Such referrals accounted for more than 70% of contributions in 2012.
Complex assets, such as private business interests and other non-publicly traded assets, played an increasingly important role in donors' contributions, according to Fidelity Charitable. Contributions of complex assets more than tripled compared with 2011 and accounted for 11% of contributions. Appreciated securities once again accounted for the majority of contributions, at 54%.
"Committed donors are becoming more resourceful in how they fund their giving, and the charitable causes they support benefit," said Sarah Libbey, president of Fidelity Charitable, in a statement. "By leveraging their most appreciated assets and the tax advantages associated with donating them to charity, donors can often give more."
