By Joyce Penland, CFRE
Charitable giving was up 3.5% last year—to $316.23 billion—but down from a peak of $344.48 million in 2007, an indicator of the nation’s slow economic recovery, according to the 2013 Giving USA report from the Center for Philanthropy at Indiana University. Gregg Carlson, chair of the Lily Foundation, which funds the annual report, said, “The small increase in giving showed the healing continues, with the prognosis being good. Giving, as a general rule, follows the economy and consumer confidence.”
Despite the nation’s stubborn unemployment rate, giving from individuals, foundations and corporations was up.
- Individuals in the U.S. are still the most generous segment of the giving “pie” contributing $228.9 billion last year, a 3.9 percent increase from $220.3 billion in 2011. We at Bacon Lee & Associates continue to encourage our clients to always focus first on cultivating, asking and stewarding individual donors.
- Companies and their foundations increased their giving to nearly $18.2 billion in 2012, compared with $16.2 billion the year before. Our caution to corporate support seekers is to consider the corporation’s goals in addition to your own nonprofit’s dreams and desires. My colleague, Amy Phipps, noted in an earlier article in this newsletter, “You’ll find that corporations are looking to leverage their nonprofit involvement with partnerships producing a “triple bottom line” benefiting not just the community, but business and employee interests as well.”
- Giving by charitable foundations was up 4.4 percent to a total $45.7 billion in 2012, and nonprofits should continue to develop specific approaches when targeting foundation support. Savvy development shops will work continuously to identify foundations with interests that align with your organization’s programs and services.
In our region, giving shows a rosier picture than elsewhere in the nation. “Here in Austin we’ve been lucky to enjoy a healthier economy than other places in the country,” says MariBen Ramsey, Vice President and General Counsel at Austin Community Foundation. “We are definitely seeing giving on the increase – already this year we have awarded $16 million in grants while during all of last year we gave $23 million.”
Beth Keough, Development Director at Seton Home in San Antonio, says the same is true for her organization. “Each area saw increased giving levels this past year—annual giving, giving by corporations, and new gifts from foundations. Our special events, including our luncheon and our gala, also surpassed expectations. Our total dollars are significantly higher this year.”
While you and I individually can do our part to boost the economy (I hope to buy a new car this year), and boost philanthropy through our own giving to causes we love, these figures indicate that our efforts to encourage our donors to stay the course is also paying dividends, albeit slowly.
Giving USA is the longest-running report about charitable giving in the U.S. The study analyzed U.S. tax data from the Internal Revenue Service, government economic indicators, and other research. For the complete report, head to www.givingusa.com
And, if your shop needs help finding ways to encourage your donors to increase their giving, let us hear from you at www.baconlee.com.