Update on the Economy, the Markets and Implications for Fundraising Professionals

Scott Middleton recently presented to the Center for Nonprofit Excellence on the economy, markets and implications for fundraising professionals. Read below for a short Q&A about his presentation.

1. Can you summarize the economic outlook in a few main points?

   “Unemployment is low and wages are rising. While the Fed is becoming less accommodative, U.S. leading economic indicators are still positive. A recession currently does not appear to be likely in the next six to nine months.”

2. What are some of the themes emerging in the markets right now?

   “While bonds have very low yields and equities are not cheap, keep a long-term focus and expect market volatility to move back to normal (i.e., higher) levels. Also, realize that diversification will test your patience. If you hate part of your investment portfolio, it may be a very good sign that it is diversified.”

3. How does the current economic and market environment impact fundraising professionals?

   “Fundraising professionals should consider speaking with their donors about gifts of appreciated securities and/or part of their IRA required minimum distributions. It’s important to keep an eye on personal tax legislation and its potential impact on charitable giving.”

Source: Innovest