As veteran philanthropist Weill retires, stats reveal giving is constrained

A former chief executive and chairman of Citigroup who has dedicated five decades to philanthropy is to retire at the age of 91. But how is charitable giving faring as the cost of living remains elevated?

Sanford ‘Sandy’ Weill served the Wall Street bank between 1998 and 2006, but for the past 45 years he has also been focused on NAF, the national education non-profit he launched and which has grown to over 600 academies across the country focusing on growing industries including finance, hospitality & tourism, information technology, engineering, and health sciences. He will retire as chair and become emeritus chairman.

“In 1980, Sandy set in motion an idea that became a movement to connect high school students to their futures. He created the foundation for NAF to be a leader in work-based learning and career-connected education,” said Lisa Dughi, NAF CEO.

Weill was awarded the Carnegie Medal of Philanthropy in 2009 along with his wife Joan and was given the 2022 Forbes 400 Lifetime Achievement Award for Philanthropy.

But while Weill’s dedication to philanthropy is unquestionable, many people feel unable to give as much to charity currently due to the cost of living.

Recent data from Wells Fargo shows that three in ten Americans report that they have given less to charity this year compared to the year before and half feel they don’t have enough money for charitable giving.

That said, two thirds have donated something in the last year even though they have not had much to spare. This is generally driven by the happiness it gives them and/or because the causes they support align with their values.

“The data shows us that the pinch of rising costs is driving a moral dilemma. Many Americans are in a standoff between what they want to do and what they can do,” said Stephanie Buckley, head of Trust Philanthropic Services with Wells Fargo Wealth & Investment Management.

But being strategic with donations is important especially as around half of respondents report being bombarded with requests for donations.

More than half of poll participants do not get any advice about giving, 27% get advice from friends and family, 21% from internet research, 11% use a charity watchdog website, and only 6% get advice about giving from a financial professional like a financial advisor or accountant.

“Not having a plan can often lead to a ‘smear the peanut butter’ approach, where people write checks and donate without thinking about how it aligns to what’s really important to them. Whether you are giving money, time, or talent, having a plan can help block out some of the noise and help ensure you are giving with intention,” said Buckley.

DONOR ADVISED FUNDS

A separate report from the National Philanthropic Trust shows that the value of Donor Advised Fund grantmaking to charitable organizations essentially remained flat year-over-year at $54.77 billion while contributions to DAFs decreased 21.7% to $59.43 billion.

Contributions to DAF accounts of $59.43 billion in 2023 represented a 22% decrease year-over-year and comes two years after the sharpest increase on record in 2021, attributable to donor response to urgent needs created by the coronavirus pandemic.

The average DAF account size was $141,120 in 2023, up 9% from 2022 with new workplace giving models, growth in popularity of high-volume DAF account sponsors, and market volatility contributing to a decrease in the average account size.

“While individual charitable giving decreased according to GivingUSA, grantmaking from DAFs to charitable organizations remained a sustainable source for good,” said Holly Welch Stubbing, CEO of National Philanthropic Trust. “DAF grantmaking ultimately helped many charitable organizations fulfill their missions, and some expand their reach, during periods of economic volatility.