U.S. Giving to Nonprofits in 2008

U.S. Giving to Nonprofits in 2008

By Tom Wilson Major Gifts Guru

The Giving U.S.A. Foundation reported their yearly research results in June 2009 for contributions in calendar 2008. This work is done through the University of Indiana Center on Philanthropy. Giving research has been done for nearly 60 years. 2008 was only the second time a decline in giving was measured.

As the chart above shows, an estimated $308 Billion was contributed with a third of that money going to religious causes from individual donors.

An ongoing trend is the great proportion of dollars contributed by individuals through direct giving (75%) and bequests (7%). With 13% coming from foundations, separate research by The Foundation Center shows that half of foundation funders are still alive and three-quarters of founders and their families members are still around – all individuals that you could talk to about a gift for your nonprofit organization.

Corporate giving continues its downward trend standing at 5%. This proportion as displayed on the chart above is critical information that must be understood by nonprofit board members and staff leaders. The small value of corporate giving is counter intuitive as most corporate giving tends to be noisy and expanded through non-charitable sponsorships and marketing support of nonprofit organizations. Individual giving “feels” smaller because 50% comes through small donations from people making less than $100,000; and many large donors wish their giving to be either anonymous or low-key.

A year ago Giving U.S.A. announced giving of $306 Billion. But, as usual they keep collecting data and announced an adjusted 2007 number of $314 Billion (an adjustment rate of about 2%). Thus, the newly announced total is about 2% lower than last year’s giving.

Most of this decline came in the 4th quarter of 2008 and this trend can be expected to continue in 2009.

What will we see a year from now? Another 5% to 10% decline in giving could easily happen again. Many corporations have cut back this year and foundations are challenged because of the asset drop many experienced. While the market is coming back, foundations will be far more conservative as many learned that multi-year future grant commitments have put many into a “giving glacier.” It’s moving, but extremely slowly and to the outside world appears to be frozen.

Even with a 10% drop, there will still be nearly $300 Billion contributed to nonprofits in 2009 so keep connecting with donors. Ask for a major gift that fits their econonic situation to help your nonprofit achieve its mission.

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