News & Updates
Marts & Lundy's Perspective
June 10, 2009
Giving USA, the most respected and comprehensive source of information regarding giving in the United States has released its findings for 2008. Not surprisingly in light of the economic downturn experienced in the United States and throughout the world in 2008, overall giving in the United States decreased in 2008 from the previous year. However, it is striking that despite the decline in the economy - despite the predictions of pundits - despite conventional wisdom that giving would decline precipitously - it did not. Rather, Americans gave the second highest dollar amount to charity – an estimated $307.65 billion - since Giving USA began reporting on American philanthropy in 1956. Remarkably, giving to religion, public society benefit and international affairs increased in 2008. And, giving to other not-for-profit sectors, while lower than 2007, actually held within traditional patterns resulting in aggregate 2008 giving totaling 2.2 percent of America’s Gross Domestic Product.
Also interesting, and inspiring, is the fact that individual giving led the results. Of all the money estimated to have been given in the United States in 2008, 82 percent was provided by individuals (including 7 percent in the form of bequests). Foundation giving accounted for 13 percent of the total and corporate giving accounted for 5 percent of the total. This pattern is consistent with previous years.
While overall philanthropy declined slightly during 2008, the fact that total giving remained at the same level as in 2007 as a percentage of GDP speaks eloquently to the long-standing culture of philanthropy in our country.
So, what does this mean for not-for-profit institutions and organizations in the United States? It means that Americans remain generous. It means that despite the worst economic environment since the Great Depression that giving in the United States continues to be an important and defining characteristic of American Society. It means that despite severe economic losses and financial challenges non-profit organizations continue to engage and involve the philanthropic support of both wealthy and average Americans. It means that non-profit organizations should not lose heart, but rather re-double their efforts to further their missions and to effectively tell their stories boldly and creatively.
There are serious and sobering challenges to be sure. When the 2008 findings are viewed in conjunction with the increases experienced in the previous year then adjusted for inflation and placed in relationship to the decline in investment income and the endowments of those organizations that have endowments, the financial declines experienced by most non profits are very significant and not to be underestimated. It is also important to remember that since economic indicators for calendar 2009 have remained problematic it is likely that the full impact on philanthropic giving has yet to occur.
However, it also is clear that the generosity of Americans remains a hallmark of our society. And this generosity, which is evidenced year after year in good economic times, and not so good economic times, continues to be an essential and deeply important aspect of American life.
You can order a copy of the Giving USA 2009 report by clicking here.
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Marts & Lundy is proud to be a founding member of the Giving Institute and a leading donor to Giving USA.