The year 2010 has already given the philanthropic world a magical moment with the story of Amazing Grace.

If Grace was stingy when thinking of herself that certainly didn't apply when thinking of others. She stunned her alma mater, Lake Forest College, by leaving them her entire estate, valued at $7 million -- the largest gift ever received in the school's 153-year history.

This is the story of a secret millionaire. Grace worked as a secretary for 43 years at Abbott Laboratories (located near her home). In 1935, she purchased three shares of Abbott stock at $60 per share, or a total investment of $180.

Grace set the stock aside. It split 13 times. She re-invested quarterly dividends. The value of the stock grew and grew as three shares became 129,000 shares. All the while, Grace continued to live below her means.

The college will use her $7 million as an endowment (expected to pay out about $300,000 a year) funding scholarships, study-abroad programs, and more, in perpetuity. Grace also left her home to Lake Forest. It will be turned into "Grace's Cottage" and provide living quarters for women who receive the scholarships.

Giving Priorities           
Feeding and sheltering the needy and seeking cures for major diseases are Americans' top priorities for charitable giving.

Parade magazine asked readers what they would do if given $100,000 to donate -- the 1,008 respondents allocated about $16,000 for the needy and more than $14,000 for disease research. Disaster relief and animal welfare were next, at about $9,300 and $8,800, respectively.

The survey found three distinct types of givers who are driving a current "compassion boom" that counters the past trend of less volunteering during tough economic times: (1) "yeppies," or young, engaged problem solvers who actively use social media and are open to a variety of causes; (2) "rapid responders" who focus on specific, often local causes; and (3) the "mission-minded," largely older people who are motivated by their faith.

Philantropic Upticks     
The Chronicle of Philanthropy has a new quarterly index tracking how four key economic indicators affect charitable giving.

It compares how today's quarter looks compared with the third quarter of 2008, when the economy was on the brink of a financial collapse. The two most recent quarters' results show a slight upward move compared with the index's low point in the second quarter of 2009. But the situation is still sharply worse than the days before the stock market's tumble sent shock waves through the rest of the economy.

A Generational Perspective      
A Convio and Sea Change Strategies study finds that members of Generation Y, who were born from 1981 to 1991, and the group that preceded it, Generation X (those born from 1965 to 1980), now make up more than half of the pool of potential donors. But they contribute less money and support fewer charities. Donors born since 1980 gave an average of $341 to an average of 3.6 groups, while members of Generation X gave $796 to 4.2 organizations.

By contrast, the Baby Boomers -- people born between1946 and 1964 -- gave $901 to 5.2 groups, and those born in 1945 or earlier gave an average of $1,066 to 6.3 charities.
The study presents fascinating findings on how members of different generations learn about charities, interact with them, and support them.

Go Forth And Multiply
Internal Revenue Service reports that there are more than 1.2 million registered charities and private foundations in the U.S. -- an  increase of 4.3 percent over the prior year.

The number of groups classified under Section 501(c)(3) has increased by nearly 90 percent since 1996, when the IRS counted a total of 654,186 of them.

The Wealthy Make Do
In the PNC Wealth Management annual Wealth and Values survey, 28 percent of wealthy Americans say the recession has caused them to cut back on the total amount of money they give to charity. Although such donors have reduced their giving, 55 percent said they still believe they have a responsibility to donate to the nonprofit groups, about the same number who indicated such a view in the last three years' surveys.

Many wealthy donors expressed concern about their ability to continue to support charities. Among respondents with $5 million or more in assets that can be invested, 24 percent said they were worried about their ability to give to charity, while only 16 percent of those with between $500,000 and $1 million in assets expressed the same concern.

In Non-Profits We Trust          
Harris Interactive has been tracking consumers' awareness and perception of brands for over 20 years, including an array of charitable non-profit brands defined as charitable member-based organizations with tax-exempt status.

Among all 1,151 brands in the study, St. Jude's Research Hospital and Susan G. Komen for the Cure both ranked among the top 10 on the trust attribute. Looking only at non-profits, St. Jude's Research Hospital was top rated and has enjoyed a #1 or #2 spot for the past four years. Susan G. Komen for the Cure, also in a top-rated spot for the last three years, was rated second. Doctors without Borders and Habitat for Humanity place in the top 10 among non-profits for the fourth year in a row.

New to the study in 2010 and in the top 10 are Mayo Clinic & Cleveland Clinic. Others in the top 10 list of most trusted organizations include the Smithsonian, Make-a-Wish Foundation, Heifer Project International, and Salvation Army.

Power Of Cause Marketing     
As more than 1.5 million nonprofit organizations in the U.S. vie for the attention of potential donors and supporters, the 2010 Cone Nonprofit Marketing Trend Tracker reveals a powerful, if unexpected, ally -- for-profit companies. More than three-quarters (78%) of consumers believe a non-profit's partnership with a trusted company or brand makes a cause stand out.
 
The results reveal the non-profit is perched under the same halo. Not only do many consumers feel better about a nonprofit when it partners with a company (56%), they are also more likely to support it.

Volunteer And Get Points        
American Express clients who participate in the company's rewards program can now gain extra points by volunteering.

The credit card company announced that members can earn 500 reward points for every hour of service (and up to 10,000 points a year) on projects listed with the placement service Volunteer Match, a qualifying charity. A growing number of major donors are funneling money into ambitious projects designed to address global and societal challenges instead of simply choosing to support nonprofit entities such as hospitals, museums, and colleges.

Belt Tightening 
Most nonprofits responded to the troubled economy and heightened scrutiny in 2009 by cutting costs and taking steps to be more accountable.
 
Among 465 nonprofit officials participating in Grant Thornton's seventh annual National Board Governance Survey for Not-for-Profit Organizations, 87 percent reduced expenses, 57 percent reduced personnel, and 53 percent delayed capital projects. And 56 percent revised their strategic plans to reflect the economic downturn.

Online Giving Cities     
Based on online giving to charity, Alexandria, Va.; Cambridge, Mass.; and Arlington, Va., topped the list as the nation's most generous large cities based on per capita giving in 2009. Compared to 2008 rankings, Arlington was the only newcomer to the top three, trading spots with Minneapolis, which fell to number five.

The report by Convio ranks 273 large cities (with total population of more than 100,000) based on per capita online giving and based on the total amount donated online through Convio. Despite a drop in average gift size in most cities, more than $284 million was donated by the 273 major cities in 2009, up from almost $240 million in 2008.

Planned Giving Challenge         
Typically, donors can give a much larger gift from their estate than from their annual income. But it's a real challenge to get people thinking about the subject.
 
The need is profound. FindLaw.com reports that 58 percent of Americans don't have a will, giving them little control or input into issues such as what will happen to their assets and any minor children after they die.
 
A proven response is hosting informal workshops and sharing newsletters and information pieces with donors and friends.

Drinking For A Cause  
Kegs for Kids events are taking off nationwide and exemplify growing efforts by fundraisers to harness the social activism of young adults and mine it for charitable donations.
 
The non-profit Project Legos is enjoying strong results. With every $1 shot and every $5 plastic beer cup purchased, the non-profit raises money for the youth empowerment programs it runs. It even nabs new young volunteers.
 
As long as everyone drinks responsibly -- why not?

Philanthropic Social Networking          
This fall watch for the debut of Jumo, a new social network that will help people find causes and non-profit organizations that they care about.

It's the brainchild of Chris Hughes, who co-founded Facebook with two roommates as a Harvard undergraduate, and later served as director of online organizing for Barack Obama's 2008 presidential campaign.
 
Jumo --which means "together in concert" in Yoruba, a West African language -- is designed to take advantage of content that has already been created elsewhere and will offer robust tools for sharing content.

Jay Says So     
He's back in his old Tonight Show slot and keeping America up laughing.
 
Jay Leno says a lot of funny things, and smart things too. Here's his sage advice on philanthropy: "If you think of life as being like a big pie, you can try to hold the whole pie and kill yourself trying to keep it, or you can slice it up and give some to the people around you, and you still have plenty left for yourself."

Quiz: Richest Americans          
Forbes World's Richest People list is out. The new richest person is Mexican tycoon Carlos Slim. Top spots are also occupied by several other foreigners. But let's stick with the red, white, and blue. Match the following Americans with their estimated worth. Anwers are shown at the bottom of the left-hand column. Until next month ...

a. $20.7 million