Philanthropy is personal and communal

Philanthropy is personal. Philanthropic individuals want to make a difference in their communities and support the fields that matter most to them. The issues or organizations people give to are shaped by a variety of factors.

So, knowing how, when and why people make charitable gifts is important in planning for endowment and grantmaking in our region. As you can imagine, at the Community Foundation for Southeast Michigan, we pay close attention to the giving landscape in our region.

Reversing the decline in household giving

Charitable giving is a mixed bag. On one hand, donations on Giving Tuesday were up 15% nationally this past November but they were spread unevenly. Large nonprofits and large donors saw an increase. However, smaller organizations relying on smaller "household" gifts continue to see a decline in giving. 

There has been movement on the state level to address this decrease in donations by encouraging the return of a tax credit aimed at families that are early in their philanthropic giving.  

In addition to addressing the huge loss in revenue that smaller nonprofits saw when the tax credit ended in 2012, this credit will stimulate kitchen table conversations about philanthropy that will foster a new generation of donors who might not have considered themselves philanthropists. We believe there is potential for this legislation to make philanthropy an everyday topic and thus more accessible. These new philanthropists, in turn, will have a direct effect on the future of Michiganders.

Engaging the next generation of philanthropists with customized giving plans

In order to engage those up-and-coming philanthropists, we have to know why and how they would like to give. Today’s philanthropists are interested in important, growing issues like social justice, the environment and human services. At the Community Foundation for Southeast Michigan, we are collaborating with donors and organizations across the state to provide money and support for each of those areas and more.

And, as a local community foundation, we have a couple of advantages over commercial philanthropy funds. For one, we can design tailored giving plans so you can support your community’s work in those fields of interest or any other area you’d like to support.

We have first-hand knowledge of most of the 24,000 nonprofits in southeast Michigan as well as our local communities’ needs. That insight coupled with our regional nonprofit connections is what separates us from commercial funds.

In addition to a powerful tax benefit of setting up a fund at the Community Foundation, you can make gifts anonymously, if you prefer, and there is no mandatory annual payout like there is with a private foundation.  

Because of our ability to closely connect donors and causes, I’m proud to say that the Community Foundation has established itself as a trusted partner in philanthropy in our region.

The Community Foundation changed our philanthropic strategy for the better

My wife, Donna, and I always considered ourselves philanthropic. For years, we gave to educational programming to organizations like Oakland university – a place near and dear to our hearts  – and thought we had philanthropy down pat.

But, once I became the president of the Community Foundation, I saw firsthand the power of having a charitable fund here. We spoke with our personal financial advisor and lawyer and established a Donor Advised Fund with stock that we owned.

That’s right, stock.

The Community Foundation can accept many different types of assets to establish a fund, such as business interests (including LLC interests), appreciated securities, IRA qualified charitable distributions and more. 

Now Donna and I believe that our charitable contributions are having an even bigger impact, going further than we knew possible.

Not just funds, but a community focused on the greater good

Southeast Michigan is expansive and full of smaller, tight-knit communities that are interconnected and with donors and nonprofit leaders who are making an impact. I want to extend my thanks to all of you for your support for this region and trusting the Community Foundation for Southeast Michigan to help you make the permanent positive change you can. You are generous visionaries that we are proud to have in our community. 

If I can leave you with one thought, it’s that the philanthropic economy is always in transition with new trends, donors, needs and opportunities. But the Community Foundation continues to be a trusted partner for philanthropy in giving today and in perpetuity.  

So, consider this post your invitation to join our community to support your community.

When you are ready make that personal philanthropic commitment to your community, we are here to co-create positive change with you. 

You can explore the best way to get started here.