When the Giving USA Foundation announced a couple weeks ago how much the American people gave last year, more than a few people found themselves scratching their heads. Was the message that 2008 was the second best year of gift giving ever? Or was the message that we have hunkered down and decided that charity begins at home?
Here’s the problem.
First fact. According to the press release, in 2008 the American people gave $307.65 billion to charity – the second highest amount ever. Only in 2007 did we give more.
Second fact. What we gave in 2008 is 2% less (5.7% adjusted for inflation) than what we gave in 2007. That is the first decline since 1986 and only the second decrease since the foundation began publishing annual reports back in 1956. Except for churches, public benefit charities and international affairs charities, two thirds of public charities received less than the year before. I wasn’t sure exactly what an “international affairs” charity was so I looked it up. These include relief, direct aid, exchange and other programs focused on international issues. Grant-making foundations and human services organizations had the greatest drop.
Third fact. In 2007, the amount we gave was 2.2% of the nation’s gross domestic product (GDP). In 2008, the amount we gave to charity was 2.3% of GDP. In other words, as a percentage of what we had to give, we gave more in 2008 than what we gave in 2007.
So, when you roll it all together, how did we do? Did we give more? Or did we give less? Maybe that’s like asking if the glass is half full or half empty. Here’s some more information to help you decide.
The 2008 decline occurred almost entirely in the last half of the year – when the extent of the current financial crisis became apparent to everyone (except maybe the SEC and bank regulatory agencies). The first half of the year was business as usual.
Individual gifts were down 2.7% (6.3% adjusted for inflation) to $229.28 billion. Charitable bequests were down 2.8% (6.7% adjusted) to $22.66 billion. Corporate giving took the biggest hit. It was down 4.5% (8% adjusted) to $14.5 billion. Foundations actually gave 3% more but when adjusted for inflation those gifts were also down (though only by 0.8%),
Religious charities received 35% of all gifts. This was 5.5% (1.6% adjusted) more than the year before. That is the largest increase of all the types of charities. Gifts to churches and other religious organizations make up about half of all individual gifts, not counting those made through bequests (5.6%) or family foundations (about 3%).
Another source, Blackbaud, reports that despite how the economy appears to be affecting gifts to charity in general, online giving in the first quarter of 2009 showed a 68% growth over the same period in 2008. Online giving in 2008 was up over 44% from 2007.
You may also have seen some of the news articles that say the number of people volunteering is up this year.
When you put it all together, does it mean that we Americans are just as charitable as we’ve ever been – just that when we feel we don’t have cash to give, we give our time?
Anyone want to guess what’s going to happen this year? Leave a comment or email me.
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I think that when times are hard, one can become a little more humble, and realizes the need to share.
My wife works for a non-profit that does work in South America and Africa and donations are way down and they are having to tighten their belts.
Posted on The Official Brigham Young University Alumni Network on LinkedIn.com
I’m seeing a lot of people digging deeper to help out, being more generous in tipping, etc. This is the time to do that!
Posted on The Official Brigham Young University Alumni Network on LinkedIn.com
Hello,
do you have a report on
2009 Charitable Contributions by sources?
Thank you very much
Meriam, depending on the detail you’re looking for, the Giving USA Foundation report does report the source of charitable gifts. The press release mentioned in the story gives the broad strokes. You can buy the complete report from them for $75. Information is at the end of the press release.
I have a different perspective. Besides being a consultant in the financial industry, I’m also the founder and director of 2nd Shot – a non-profit that helps military veterans transition into civilian careers. I’m a Marine Corps veteran and former Commander of the Patriot Guard, so helping veterans is important to me.
I watched the founding sources get very excited when I first spoke with them about 2nd Shot. Then, I saw those funding sources evaporate completely.
Americans are big on flag waving until they are asked to actually do something beyond slaping a magnet on their car. We love our fighting men and women until they come home; then, they become competition for jobs. We’ll give a dollar to the Humane Society, but zero to the men and women we sent into Harm’s Way.
So, where is the financial industry and how is it helping veterans? So far as I can see – it’s not.
– Michael Lovas
[Posted on the Society of Financial Service Professionals group on LinkedIn.com]
My consulting business is focused on helping non-profits grow and become sustainable, so giving levels is a hot topic.
Most conversations I’ve had with non-profit leaders over the past 5-6 months indicates a significant across-the-board drop in donations and in corporate support for many of their organizations. And the largest giving segment for most organizations (i.e., money from individuals) is still there, but has declined, too. Several report they are down 30% from 2008 individual giving levels.
The result? There is new interest in: 1) “getting the word out” about their non-profit; 2) developing unique venue fund-raising events and 3) looking for additional income streams. Those are good strategies–but then again, many other non-profits will be attempting to do exactly the same things in the coming months.
Two positive effects of the tough economic climate are that smart non-profits are: 1) putting more clarity in their “why give?” case statement and 2) taking time to enhance Board member understanding of their responsibilities–including their individual role in fundraising.