Up 3.9 percent despite worries about gas prices, mortgage crisis and housing market
Glenview, Ill. (June 23, 2008) - Charitable giving in the United States is estimated to be $306.39 billion in 2007, exceeding $300 billion for the first time in history, according to Giving USA 2008, the yearbook on philanthropy released today by Giving USA FoundationTM.
Every type of public charity receiving donations saw gains in 2007. The subsectors examined in Giving USA are: Arts/Culture/Humanities; Education; Environment/Animals; Health; Human Services; Public-Society Benefit; International Affairs; and Religion. Foundations saw a decrease. Private foundations are not technically a form of public charity, but are examined in the report, as are community and operating foundations.
The estimates for 2007 indicate that giving rose in 2007 by 3.9 percent (1 percent adjusted for inflation), says the report, which is researched and written by the Center on Philanthropy at Indiana University.
This year’s report also includes results from a survey of 366 charities about their fundraising practices and the impact they believe national events had on giving in 2007 and will have in 2008. The survey concentrated on charities in the public-society benefit subsector. These include combined purpose funds that reallocate received gifts to other charitable recipients, community and economic development organizations, research institutes, and organizations registering voters or working on civil rights issues.
Combined-purpose funds include such entities as United Ways, religious campaigns and the Combined Federal Campaign.
“Charities we surveyed have concerns about 2008 for the economy and the stock market and the impact they will have on giving, but not about the presidential election,” said Ms. Del Martin, chair of Giving USA FoundationTM. “This year’s Giving USA survey showed that a clear majority of charities in the public-society benefit arena are not worried about the impact the presidential campaign will have on their fundraising.”
Presidential campaigns raised $580.4 million in 2007, according to the Federal Election Commission. That is less than one-quarter of one percent of the $306 billion raised for charitable purposes.
“Giving USA 2008 shows that a strong start to the economy in 2007 helped lift giving despite worries at year’s end from gasoline prices or the housing and mortgage crises,” said George C. Ruotolo Jr., CFRE, chair of Giving Institute: Leading Consultants to Non-Profits, which founded Giving USA Foundation in 1985. “Just as important as the 3.9 percent overall increase is the finding that every subsector (except private foundations) is projected to have seen increases in 2007. This last occurred in 2001.”
The increase in 2007 is attributable largely to stock market performance in the first half of the year, overall growth in the economy measured by gross domestic product, and increases in corporate and personal income as reported at the end of the year. Charitable giving was 2.2 percent of gross domestic product for 2007.
Summary of Giving USA methods
Giving USA’s annual estimates are based on econometric studies using tax data, government estimates for economic indicators, and information from other research institutions. Sources of data used in the estimates include the Internal Revenue Service, Bureau of Economic Analysis, Foundation Center, Independent Sector, Council for Aid to Education, National Center for Charitable Statistics at the Urban Institute and National Council of Churches of Christ.
The Giving USA report estimates changes in giving to subsectors (health, arts, education, religion, etc.). Except for giving to religion and giving to foundations, the subsector estimates are based on econometric models. The Center on Philanthropy at Indiana University prepares all the estimates in Giving USA for Giving USA FoundationTM.
Giving USA found total growth of 4.6 percent when estimating the dollar amount of gifts received at organizations When estimating giving by adding together the results of the four sources of contributions, Giving USA found a growth in giving of 3.9 percent. The estimates for the sources of giving are developed separately from the estimate of the receipts by type of recipient. The fact that the two different methods come within less than 1 percentage point of each other is one measure used by the Giving USA Advisory Council on Methodology to evaluate the results prior to their release.
A Note about Inflation Adjustments
Inflation-adjusted rates of change are based on estimates calculated using a Bureau of Labor Statistics inflation converter, which rounds to two decimal points. When comparing the inflation-adjusted rates of change to rates of change in current dollars, the difference between the two is not a constant 2.8 percentage points (the rate of inflation used in the BLS converter for 2006 to 2007). This is a by-product of the rounding and is not due to the use of a different measure of inflation or an error in calculation.
The complete Giving USA 2008 report, with data covering giving in 2007, will be available in July 2008. Giving USA Foundation also publishes a quarterly newsletter, Giving USA Spotlight. Both may be ordered by calling 847/375-4709 or on-line at givingusa.org.
Giving USA is a public outreach initiative of Giving USA Foundation™. The Foundation, established by Giving Institute: Leading Consultants to Non-Profits, endeavors to advance research and education in philanthropy. |
