Ralph G. Adamo, CEO of Integrity Wealth Management, Responds to Decline in Charitable Giving
NEWPORT BEACH, Calif., March 18, 2009 — Ralph G. Adamo, Founder and CEO of Integrity Wealth Management, and supporter of several charitable foundations, is conducting research to assist development professionals and executives at charities to determine how to counter the broad decline in charitable giving due to the current financial crisis. Adamo's firm helps high net worth families to help maximize the benefits of their financial assets. As a group, they represent a substantial portion of most charities' endowments, so their needs and motivations are the focus of the research.
"Someone had to do something to help charities. The last straw is the Administration's proposal to limit deductions for charitable giving to 28%," said Adamo. "We are finding that gifts to charity are ninth on the list of concerns individuals have when it comes to deciding on the future. Taxes--on both income and estate--legacies for heirs and worries about parent care all squeeze charity for attention. To respond to that reality, we're developing a systematic program aimed at enhancing planned opportunities that create a win for donors and a win for the charity," he said.
The consequences would be tragic if charities severely cut back on the good work they do because of the generalized decline in giving. But at the same time, charitable foundations must understand that, just like any viable enterprise, they need to respond to changing financial and economic circumstances by delivering greater value to their supporters. Old fundraising models, formal balls and auctions, have been less successful in recent years and development people tend to burn out over time continually asking for gifts. Dramatic increases in government spending will undoubtedly lead to higher taxes, causing high net worth individuals to revisit their estate plans and recalibrate the assumptions underlying their wealth management strategies. If they can be shown how to meet their personal and family concerns, while securing the financial future of their favorite charities, they will have turned their success into a significant legacy.