Individuals, foundations and corporations collectively gave more than $300 billion to charities last year — the second year in a row, and only the second time ever, that giving crossed the $300 billion mark.
In current dollars, 2008 giving fell just 2 percent, to $307.6 billion from $314.1 billion in 2007. When adjusted for inflation, giving fell by 5.7 percent.
That inflation-adjustment decline is the sharpest since the survey was started in 1956.
The greatest decline in giving (12.7 percent, or 15.9 percent when adjusted for inflation) was to human services organizations — the food banks and health clinics and childcare groups and job training centers that have seen demand for services skyrocket even as they face severe budget cuts from the government. They received 9 percent of all philanthropy in 2008.
Religious groups once again received the largest share of philanthropic dollars: 35 percent. Giving to religious groups increased 5.5 percent (1.6 percent when adjusted for inflation) in 2008.
As in previous years, individuals gave the most, accounting for $229.28 billion or 75 percent of all giving in 2008, but their giving dropped by 2.7 percent (6.3 percent adjusted for inflation). Foundation giving was $41.21 billion, a 3 percent increase from 2007 (though up only 0.8 percent when adjusted for inflation) and 13 percent of total philanthropy. Corporate philanthropy totaled $14.5 billion, 5 percent of all charitable giving. That’s a decrease of 4.5 percent (8 percent in inflation-adjusted dollars) from 2007 giving levels.
Many charity experts believe that the worst is yet to come, since the economy didn’t begin to fall in earnest until the fourth quarter of 2008. Many foundations have lost more than 30 percent of their capital, and by and large those losses are only now being factored into the rolling averages that determine how much a foundation will give away.
Giving USA is a publication of Giving USA Foundation and is researched and written by the Center on Philanthropy at Indiana University.
[From Charitable giving is down, but it still tops $300B - Washington Business Journal: ]