U.S.
charitable giving estimated Glenview, Ill. (June 10, 2009)—Charitable
giving in the United States exceeded $300 billion for the second year
in a row in 2008, according to Giving USA 2009. Donations to charitable
causes in the United States reached an estimated $307.65 billion in
2008, a 2 percent drop in current dollars over 2007. The
2008 number is the first decline in giving in current dollars since
1987 and the second since Giving USA began publishing annual reports in
1956, says the annual report on philanthropy, released today for the
54th year by Giving USA Foundation.
Revised estimated giving for 2007 was a record $314.07 billion.
Two-thirds of public charities receiving donations saw decreases in
2008. The exceptions were Religion, Public-Society Benefit and
International Affairs. The other types of charities (or subsectors)
examined in Giving USA are: Arts/Culture/Humanities; Education;
Environment/Animals; Health; Human Services; and Foundations, says the
report, which is researched and written for Giving USA Foundation by
the Center on Philanthropy at Indiana University.
“With the United States
mired in a recession throughout 2008, there was no doubt in anyone’s
mind that charitable giving would be down,” said (Ms.) Del Martin,
CFRE, chair of Giving USA Foundation. “However, what we find remarkable
is that individuals, corporations and foundations still provided more
than $307 billion to causes they support, despite the economic
conditions. “It would have been easy to say ‘not this year’ when
appeals came their way,” she added, “and we definitely did see
belt-tightening. This drop in giving meant that nonprofits have had to
do more with less over the past year, but it could have been a lot
worse.”
Giving remains core component of GDP In the context of Gross Domestic
Product (GDP), giving is as strong historically as it’s ever been. The
estimates for 2008 indicate that giving was 2.2 percent of GDP. In
2007, giving was 2.3 percent of GDP. “The fact that charitable giving
was still more than 2 percent of GDP in 2008 is a bright spot in an
otherwise negative climate for donations,” said Nancy L. Raybin, chair
of Giving Institute: Leading Consultants to Non-Profits, which created
Giving USA Foundation in 1985. “The Institute has been active in
examining ways to move contributions upward, and it looks like the
American public agrees with us that charitable giving is an integral
part of the country’s economic fabric.”
Human Services
sector surveyed for trends, issues
This year’s report also includes results from a national survey of
human services charities about their fundraising practices and the
impact they believe current events had on giving in 2008 and will have
in 2009.
Charities in this subsector are among the first to report increasing
needs for their services and slower growth in contributions when the
national economy slows its rate of growth; for 2008, giving in this
subsector declined an estimated 12.7 percent in current dollars, to
$25.88 billion. In inflation-adjusted dollars, the drop was 15.9
percent. Human Services giving is 9 percent of total estimated giving
for 2008.
The survey results showed that:
• Compared with 2007, 54 percent of human services charities saw an
increase in need for their services in 2008; 30 percent saw little
change in need; and 16 percent saw a decline;
• For 2009, 60 percent of the surveyed human services organizations
were cutting expenses, including cutting services or staff, due to
funding shortages;
• The type of human service agency most likely to be underfunded was
youth development/serving children and youth. Of this type of group in
the study, 74 percent said they are underfunded or severely
underfunded, meaning that current available funding was insufficient to
meet current demand; and
• Among organizations working to meet people’s basic needs (food,
shelter, clothing, etc.), more than half (53 percent) said they are
underfunded or severely underfunded for 2009.
This survey went to a random sample of human services charities. The
overall response rate was 7.1 percent, with 228 completed surveys.
The report also talks about the picture for 2009, when the economy has
already seen both continued stressors and faint signs of a recovery. At
the time of this release, there was a slight uptick in the housing
sector while the stock market was slowly rising. Banks hard-hit by the
credit crisis were still facing many challenges.
Advice about how nonprofits can survive in an economic downturn;
results from the Giving USA survey of human services charities and how
they view their funding prospects for 2009; and, forecasts for the year
released by several organizations are included in the report. 2008
estimates outlined Giving USA reports that, adjusted for inflation,
total giving was down 5.7 percent, the largest drop recorded since the
group has been keeping track of America’s charitable donations.
Individual giving, which is always the largest component of charitable
contributions, was an estimated $229.28 billion, or 75 percent of the
total, in 2008. This is a decrease of 2.7 percent compared with 2007
estimates (-6.3 percent adjusted for inflation).
Charitable bequests are estimated to be $22.66 billion in 2008, a
decrease of 2.8 percent (-6.4 percent adjusted for inflation). They
make up 7 percent of total giving.
Corporate giving, which is closely tied to corporate profits, is
projected to have decreased 4.5 percent (-8 percent in
inflation-adjusted dollars), to $14.5 billion. It is estimated to equal
5 percent of all charitable giving.
Foundation grantmaking, according to data from the Foundation Center,
was $41.21 billion, an estimated 3 percent increase in current dollars
but a drop of 0.8 percent adjusted for inflation. It is 13 percent of
total giving for 2008. 2008 estimates of giving by type of
recipient
Religion: Religious congregations and other religious organizations
received an estimated $106.89 billion, which is 35 percent of the
total. This is the second year that giving to religion has exceeded
$100 billion. Giving to religion increased an estimated 5.5 percent
(1.6 percent adjusted for inflation). Religious gifts account for an
estimated one-half of all individual giving, not counting gifts made
through bequests (5.6 percent)
or family foundations (about 3 percent).
Education organizations received an estimated $40.94 billion, or 13
percent of the total. Gifts to this type of organization
decreased 5.5 percent (-9 percent adjusted for inflation).
Foundations received an estimated $32.65 billion, according to
calculations by the Foundation Center and Giving USA. The
estimate for 2008 is a decrease of 19.2 percent (-22.2 percent adjusted
for inflation).
Gifts to Health organizations are estimated to be $21.64 billion, or 7
percent of total estimated giving. The decrease in giving to this
subsector for 2008 is estimated to be 6.5 percent (-10 percent adjusted
for inflation).
Estimated giving to the Public-Society Benefit subsector was $23.88
billion in 2008, or 8 percent of total estimated giving. The increase
is 5.4 percent (1.5 percent adjusted for inflation).
Arts/Culture/Humanities organizations received an estimated $12.79
billion in 2008, or 4 percent of total estimated giving. The decrease
is 6.4 percent (-9.9 percent adjusted for inflation).
International Affairs organizations, which include relief, direct aid,
exchange, and other programs focused on international issues, received
an estimated $13.3 billion, or 4 percent of total estimated giving.
This is growth of 0.6 percent (but a decrease of 3.1 percent when
adjusted for inflation).
Giving to the Environment/Animals subsector is estimated to be $6.58
billion, or 2 percent of total estimated giving. This estimate reflects
a decrease of 5.5 percent (-9 percent adjusted for inflation).
U.S. giving hit record $306 billion in 2007
Even
as Americans began feeling the pinch of soaring gas prices, falling
stock markets and a looming mortgage crisis, they donated $306.39
billion to charity in 2007, more than ever before.
That's an increase of 3.9 percent, or 1 percent after adjusting for
inflation, says Giving USA 2008, released by the Giving USA Foundation
and compiled by the Center on Philanthropy at Indiana University.
That generosity was felt across the board as all subcategories of
public charities saw increases in donations last year.
"I'm always gratified to see the numbers and to see that Americans
continue to give and to give more, in spite of when they may be feeling
other economic pressures," says Del Martin, chair of the Giving USA
Foundation and chair of Alexander Haas Martin & Partners, an
Atlanta-based fundraising consultancy.
The strong showing, which belies the current state of the economy, is
due to a strong stock market in the first half of 2007, growth in the
nation's gross domestic product and increases in corporate and personal
income, the study says.
While
the study does not include data for the first half of 2008, when the
economic downturn accelerated, Martin is optimistic about this year's
showing.
"I think we're going to see some growth," she says. "It will either be
about the same or a little less, unless there's something we're unaware
of that hits us catastrophically. Giving seems to be somewhat
recession-proof."
Individuals continued to serve as the
engine of the charitable sector, even as their donations dropped a
slight 0.1 percent after inflation to $229.03 billion, accounting for
74.8 percent of all giving in 2007.
Add to that the $23.15 billion that people donated through their wills
and their family foundations, and giving by individuals made up 88
percent of all contributions last year.
Just over half of donations from individuals last year were directed to
religious organizations, which received a total of $102.32 billion, up
an inflation-adjusted 1.8 percent over 2006, the study says.
Foundations increased their share of support for the nation's
nonprofits last year to 12.6 percent of all giving.
Donations from foundations totaled $38.52 billion, an increase of 7.3
percent after inflation, according to data from the Foundation Center.
That increase is attributable in part to a 12 percent rise in
foundation assets in 2007, the report says.
Corporations, on the other hand, responded to profit pressures with a
slight dip in giving of 0.9 percent after inflation, for a total of
$15.69 billion contributed last year.
All subcategories of public charities saw increases in donations last
year:
* Religion: $102.32 billion, up 1.8 percent after
inflation
* Education:
$43.32 billion, up 3.4 percent after inflation
* Human services: $29.64 billion, up 5.4 percent
after inflation
* Health: $23.15 billion, up 2.4 percent after
inflation
* Public society benefit: $22.65 billion, up 2.9
percent after inflation
* Arts, culture and humanities: $13.67 billion, up
4.8 percent after inflation
* International affairs: $13.22 billion, up 12.9
percent after inflation
* Environment and animals: $6.96 billion, up 7.7
percent after inflation
Foundations were the only recipients to take a hit in 2007, with gifts
received falling an inflation-adjusted 11.9 percent to $27.73 billion,
according to data from the Foundation Center and Giving USA.
That drop is due in part to a spike in the number of bequests to family
foundations in 2006, the Giving USA Foundation says, as well as
billionaire Warren Buffett's $1.6 billion gift to the Bill &
Melinda Gates Foundation, and the total of $159 million he gave in 2006
to three foundations run by his children.
U.S. charitable giving was $295.02 billion in 2006
Third straight year of growth fueled in part by "mega-gifts
U.S. charitable giving reached a new record in 2006, an estimated $295.02 billion, according to Giving USA 2007, the yearbook of philanthropy published by Giving USA Foundation and researched and written by the Center on Philanthropy at Indiana University.
Donors gave an estimated $11.97 billion more than in 2005, a 4.2 percent increase (1.0 percent adjusted for inflation) over a revised estimate for 2005 of $283.05 billion. The 2005 estimate includes nearly $7.4 billion in extraordinary disaster relief giving. If disaster gifts are excluded from the 2005 total, giving in 2006 rose 6.6 percent (3.2 percent after adjusting for inflation).
"It is impressive that giving continued to rise in 2006, especially following the unprecedented levels of disaster giving in 2005," said Richard T. Jolly, chair of Giving USA Foundation. "America's 1.4 million charitable and religious organizations provide a huge range of services that improve lives, from meeting immediate needs to funding medical research or creating endowments to assure the future of arts or educational institutions."
Mega Gifts The record-setting gift amount includes $1.9 billion that Warren Buffett paid in 2006 as the first installment on his 20-year pledge of more than $30 billion to four foundations and also includes donations from hundreds of millions of Americans, as well as gifts from charitable bequests, foundations and corporations. (Pictured right - Warren Buffett's Gift To Gates Foundation Brings Hope To Public Schools video - CBSNews.com)
"While headlines focus on 'mega-gifts,' they represented 1.3 percent of the total, "said George C. Ruotolo Jr., CFRE, chair of Giving Institute: Leading Consultants to Non-Profits, parent organization of the Foundation. "About 65 percent of households with incomes lower than $100,000 give to charity. That is higher than the percentage who vote or read a Sunday newspaper.
Based
on publicity
surrounding the "mega-gifts" of 2006, some commentators predicted a
rate of growth in giving akin to the double-digit increases seen in the
late 1990s. 
Research
shows that giving in 2006 was
consistent with the
historical relationships between wealth increases and giving.
"The stock market rose more than 10 percent adjusted for inflation in 2006," said Eugene R. Tempel, CFRE, executive director of the Center. "Going back to 1990, giving rose, on average, about one-third as fast as the stock market did, so 2006 is right on target. Giving rose 3.2 percent, adjusted for inflation, when the disaster gifts of 2005 are deleted," he added.
Giving by individuals is always the largest single source of donations, according to the report. It rose by 4.4 percent. (1.2 percent adjusted for inflation) to an estimated $222.89 billion and accounts for 75.6 percent of all estimated giving in 2006.
Charitable bequests are estimated in 2006 to be $22.91 billion, a 2.1 percent drop (-5.1 percent adjusted for inflation) from the revised value for 2005, which is based on IRS records and is now $23.40 billion. New IRS information about 2005 shows a very large change in giving by the wealthiest estates. Charitable bequests in 2006 are 7.8 percent of the estimated total.
Foundation grantmaking, as recorded by the Foundation Center and reported in Giving USA, rose 12.6 percent (9.1 percent adjusted for inflation) to $36.5 billion. The increase was because of growth in the number of foundations and because the stock market rose very rapidly in 2006. Foundations make grants based in part on the value of their assets, and when asset values rise quickly, grantmaking increases. Foundation giving accounts for 12.4 percent of total estimated charitable giving in 2006.
Donations by corporations and corporate foundations are estimated to be $12.72 billion in 2006. This is a decline of 7.6 percent (-10.5 percent adjusted for inflation). The decline reflects the extraordinary gifts in 2005 for disaster relief as well as a slow-down in the rate of growth for non-disaster-related corporate giving. Without the 2005 disaster relief gifts included, corporate giving is estimated to have increased 1.5 percent in 2006 (a drop of 1.7 percent when adjusted for inflation).
Who
Got What from Who in 2006 Charitable gifts benefit at least nine different types of
charities, with religious congregations receiving an estimated 32.8
percent of the total. In 2006, the highest growth rate was in arts,
culture and humanities organizations, which saw a change of 9.9
percent. This is the largest change in this subsector since 2000. Arts,
culture, and humanities giving reached an estimated $12.51 billion in
2006. The new estimate is based on revised historical data from IRS
Forms 990.
Giving to education rose an estimated 9.8 percent, to $40.98 billion, based on the Giving USA survey and data collected by the Council for Aid to Education. Gifts to education are 13.9 percent of total estimated giving in 2006.
Gifts to foundations showed the next-highest rate of growth, increasing an estimated 7.4 percent. This estimate is based on information from the Foundation Center about giving to foundations in 2005. For 2006, the Foundation Center and Giving USA estimate contributions made to foundations of $29.50 billion. About $3.5 billion of that amount is estimated fair-market value of medical supplies and medicines donated to a dozen operating foundations created by pharmaceutical firms and medical products manufacturers. Gifts to foundations are an estimated 10.0 percent of total estimated giving for 2006.
Two
subsectors saw a
decline in the amount received in 2006, in large part because the
donations to those categories in 2005 included billions of dollars for
disaster relief. Giving to human services dropped an estimated 9.2
percent (-12.0 percent adjusted for inflation), to $29.56 billion.
Giving to organizations in the international affairs subsector fell an
estimated 9.2 percent (-12.0 percent adjusted for inflation) in 2006,
to $11.34 billion. In both cases, the 2006 estimate is based on
historical data from IRS Forms 990.