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 two 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 by Giving USA Foundation TM (www.givingusa.org). 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 sectors examined in Giving USA were: 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.
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 sector 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 sector 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 nine 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.
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 seven 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 five 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.
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 three 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 sector 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 2007, or four 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 four 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 sector is estimated to be $6.58 billion, or two percent of total estimated giving. This estimate reflects a decrease of 5.5 percent (-9 percent adjusted for inflation).