By Marion Lee, CFRE
Every summer we look forward to what has become known in the office as the philanthropy report card published by the Giving USA Foundation. As most of you know, The Center on Philanthropy at Indiana University researches and writes the Annual Report on Philanthropy. Not only do we consider this a great bell weather for our clients, but also we truly enjoy learning how we as a professional sector did during the past year.
So, let’s take a look at 2009. Charitable giving did fall 3.2 percent (adjusted for inflation) in 2009 to $303.75 billion, down from a record $315 billion in 2008. Four percent of these gifts came from corporations, 13 percent from foundations and 75 percent of all charitable gifts came from you and me. Add in bequests at eight percent and we have individuals accounting for 83 percent of all charitable giving in 2009.
The American public is amazing! We meet adversity by stepping up to hit one over the plate by giving at the same level as in 2008 and slightly more than in 2007. I continue to be fascinated and frankly, emotional, about how we as a people handle crisis.
The current economic downturn and instability has unquestionably impacted our lives, but it may be heartening to note that in the recession of 1973-75, giving fell by 5.5 percent (adjusted for inflation) compared to the current 3.2 percent. Giving USA suggests that some of the reasons for less impact on individual giving include:
- Giving in this decade is more per household than in the early 1970s;
- As predicted 10 years ago, more women are in control of their own resources both because women are now 50 percent of our workforce and actuarially survive longer than men;
- Women, when they have their own income, give more than men with similar incomes;
- Nonprofits have more organized fundraising programs.
We are finding that the predictors that we saw 10 years ago during my tenure at the San Antonio Area Foundation are being proven over time.
- Women are making their own money, inheriting generational wealth and are becoming the primary decision makers in philanthropic gifts.
- Organizations with a structured fundraising program build more secure donor bases.
- Diversity in funding streams is critical always and life and death in hard economic times.
- Building relationships with individuals, one-on-one, not through the buffer zone of special events, can give you the “friend in need being the friend in deed.”
Sadly, we know of several nonprofit organizations, worthy missions all, who have closed their doors in the last year. In almost every case, the heavy dependency on a single source of funding, in most cases, either private foundation or government sources, led to the decision to dissolve the organization.
So there are lessons to be learned from the times we are facing. If you are like me and the glass is always half full, then the year in review was better than anticipated. Our goal is learn our lessons from what we have survived, look ahead to what we can be, and fill the glass.