By Joyce Penland, CFRE
A look at charitable giving for 2013 gives all of us involved in the nonprofit sector a reason for optimism. According to the 2014 Giving USA report from the Center for Philanthropy at Indiana University, charitable giving was up 4.4% last year. The report also states there has been a sustained increase in giving to philanthropies throughout the last four years. Americans gave $335.17 billion to charity in 2013. Although that is down from a pre-recession peak of $344.48 million in 2007, if giving continues at the current pace, it could take only one to two more years for total giving to return to the 2007 level.
According to the report, total giving to charitable causes by individuals, foundations, estates, and corporations rose for the fourth consecutive year in 2013. The largest increase was focused on education with an increase of 8.9%, driven by gifts to higher education as well as to K-12 schools and other educational organizations. Gifts for the benefit of the public–arts, environment/animal or health organizations—was strong in 2013 ranging from 6.0 to 8.5%.
Two areas that slowed were giving to religion as a result of declining religious affiliation and attendance, as well as giving to international affairs. It should be noted, however, that religion still receives 31% of all charitable gifts, the largest “slice” of the giving pie.
So what does this mean for us in our own shops? AFP-San Antonio President Janice Bobo observed, “While we all know that individual giving is the largest sector, I’m not sure we all realize what a huge chunk this is. Every time you go into a Board meeting, the focus is ‘What foundation or corporation can we approach?’ instead of how we increase our individual donor base.”
Some observations:
- Individuals in the United States are still the most generous segment of the giving, donating $240.6 billion last year, a 4.2 percent increase from 2012. The report notes that individuals, especially those who are wealthier, are becoming more confident about supporting the causes they care about as their financial situations continue to improve. The Bacon Lee & Associates team continues to remind our clients to focus first on your individual prospects and donors. Bobo agreed, saying, “Individuals give more than any other source and we need to look at new and inventive ways to not only engage our new donors, but continually steward and cultivate the donors we already have.”
- Giving by companies and their foundations declined 1.9% in 2013, due primarily to the slow growth in corporate pre-tax profits, the report shows. Our counsel to nonprofits seeking corporate support remains unvarying: Remember to view corporate giving through the lens of the corporation, and consider the corporation’s objectives along with your nonprofit’s goals and aspirations.
- Giving by charitable foundations was up 5.7% to a total $48.98 billion in 2013 and successful development shops should continue to create specific approaches when seeking foundation support. Smart development officers will work to identify foundations with interests that align with your agency’s programs and services.
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.