Thank-You Gifts May Deter Giving, Experts Say

Thank-you gifts to donors like mugs and key chains may prompt people to give less than they otherwise would, according to a study by two Yale scholars reported in The Wall Street Journal.” People seem to be concerned that if they were to accept the thank-you gift, it would create ambiguity about their reasons for giving,” says George E. Newman, an assistant professor of organizational behavior at Yale’s School of Management, who conducted the study with Jeremy Shen, a newly minted Ph.D recipient from Yale.
The article is one of several the Journal published on philanthropy in its Wealth Management report, which includes a look at how big data has the potential to transform philanthropy, prepared by Lucy Bernholz, a visiting scholar at Stanford University.
“More, better, and faster information can help donors channel dollars to the organizations that are most effective,” she writes. “It can help nonprofits identify the strategies that work best at fulfilling their missions. And it can guide philanthropies to the fundraising tactics that are most successful.”
The Journal also advises donors on tax-savvy ways to give at year’s end. In particular, it urges donors to give away stocks that have grown sharply in value because that will help them avoid capital-gains taxes. For people older than 70 1/2, the newspaper recommends moving quickly to tap individual retirement accounts to give up to $100,000 to charity. The retirement benefit is available only until year’s end because Congress has not extended the tax provision.