Increased Holiday Charitable Giving, Increased Risk?
Charitable giving traditionally reaches its height during the holiday season. The last few months of the year make up what is commonly called “the giving season” for the nonprofit community.
As the holidays near, people may feel encouraged to give more generously than during the rest of the year. Because of the uptick in charities requesting donations, the holiday spirit bringing out people’s generosity and the pending December 31 deadline for tax-deductible philanthropic gifts, this surge is an annual trend.
In a 2007 study, The Center on Philanthropy (COP) at Indiana University found that their respondents reported giving about 24 percent of their annual total between Thanksgiving and New Year’s Day. According to a 2012 GuideStar Survey, however, 50.5 percent of the organizations surveyed said they received the majority of their contributions between October and December. It is no wonder that charities have customarily received the bulk of their yearly donations during the last couple months of the year.
Holidays aside, charitable giving has increased on a year-round basis in the past several years, so we could expect yet another record-breaking year for charities. This increase is revealed in the following statistics:
- Charitable giving has increased over 10 percent (2015)
- Total giving to charitable organizations was $373.25 billion in 2015 (2.1 percent of Gross Domestic Product (GDP)), which is an increase of 4.1 percent in current dollars and 4 percent in inflation-adjusted dollars from 2014
- Comparing GDP growth and change in charitable giving over 2010-2015, the average increase in giving to charitable causes (3.6 percent) is greater than the growth of GDP (2 percent)
While this is uplifting news from a humanitarian perspective, the increase in charitable giving may make nonprofits vulnerable to a number of exposures. These small groups can find themselves liable for claims that include but are not limited to:
- Bodily injury
- Misappropriation of funds
- Breach of fiduciary duty
- Defense costs
- Cyber threats
These already small organizations need protection, but the dilemma lies in the ability to afford multiple policies to address these concerns. Under the Nonprofit Package team’s products for charities and business associations, USLI offers a variety of insurance and value-added solutions for these organizations, with new minimum premiums starting at $395. Our comprehensive package policy offers:
- General liability
- Directors and officers
- Employment practices
- Hired and non-owned auto
- Abuse and molestation
- Educational enhancement endorsement
- Blanket Special Events coverage with host liquor available
Eligible Charity classes include but are not limited to booster clubs, parent/teacher organizations, community gardens, charitable fundraising, foundations, car clubs, membership organizations, alumni associations and arts and culture support organizations; eligible Business Association Guard classes include, but are not limited to chambers of commerce, professional and trade associations and business membership groups.
USLI’s Business Resource Center also provides value-added resources that greatly benefit charitable organizations and membership groups, such as discounted background checks, marketing safety, cyber breach information and much more.
Please contact your Nonprofit Package underwriter today for more information on our Charity Protector and Business Association Guard products!
Contact Andrew Guido,
Product Leader | 888-523-5545 Ext. 2334
Contact Paul Nusspickel,
Assistant Product Leader | 888-523-5545 Ext. 2725
Written by Kristin Logan
December 7, 2017