Though financial concerns that existed for several years appeared to accelerate during the first quarter of 2025, there are signs that several economic indicators are improving, and the last part of the year may be different, setting up some potential good news for year-end gifts.
- According to the Bureau of Economic Analysis, gross domestic product (GDP) decreased 0.2% in the first quarter. Many economists expect the GDP to increase for the remainder of the year, with an overall positive growth rate this year.
- The stock markets have been trading at or near record levels, and unemployment figures have been better than expected.
- The general inflation rate has fallen since its steady increase drove prices up dramatically in 2024. Even though inflation remains low at this time, it is an ongoing concern. If the consumer price index (CPI) stays low, the Federal Reserve could further cut interest rates later this year. Interest rate cuts could contribute to economic growth both this year and next.
- Overall, a risk of recession remains but appears lower than it was in the first half of the year.
Time to plan for year-end
The remaining few months of the year will be critical for the nonprofit sector. Stage of life factors like age, wealth, income and employment/retirement can help you segment your donor file for regular, major and planned gift prospects. Focus on current and former donors and let them know the impact of their gifts.
Baby Boomers and older Americans tend to be among the most generous generations and are most likely to report being financially comfortable. In addition to making current year-end gifts, both large and small, they are also likely to play a prominent role in both planned and major gift activity.
Add planned giving to the year-end mix
For those in the affluent older generations with various concerns that could impact current and major gift decisions, planned gift may provide a smart way to give (e.g., bequests and other simple remainders, charitable gift annuities, charitable remainder and lead trusts, IRA QCDs and charitable gifts in conjunction with the sale of a farm business, stocks or other valuable assets), so don’t forget to include these options in your end-of-year messaging.
Ideas here are based on Barlow’s article in the September issue of Planned Giving Today titled “Personal Finances and Philanthropy.” ■
As Sharpe Group’s general counsel, Barlow Mann consults with some of the country’s most successful gift planning programs. He is recognized as an industry expert and is on the editorial board of Planned Giving Today.
