Tsunami Gifts Less Than One-Half of 1 Percent of Total
GLENVIEW, Ill., June 13 /PRNewswire/ -- Estimated charitable giving
reached $248.52 billion for 2004, a new record for philanthropic giving in the
United States, the Giving USA Foundation announced today. The new Giving USA
report released today is the 50th anniversary edition of the yearbook of
philanthropy. Giving USA is published by the Giving USA Foundation and
researched and written at the Center on Philanthropy at Indiana University.
Contributions made in 2004 for relief after the December 26 tsunami that
devastated the regions surrounding the Indian Ocean are a very small portion
of the estimated total, less than one-half of 1 percent. Much of the tsunami
relief giving will appear in 2005, and, at between $1.5 billion and $2.5
billion, tsunami relief contributions likely will be a low percentage of the
total estimated charitable contributions for that year.
"Charitable giving is the lifeblood of more than a million American
nonprofits," said Henry (Hank) Goldstein, CFRE, chair of the Giving USA
Foundation. "Contributions fund research in medicine and the social sciences,
endow scholarships, support museums and orchestras, and so much more. A 5
percent increase suggests donors are 'over the hump' of the economic concerns
that limited the growth of contributions in 2002 and even somewhat in 2003."
Giving USA reports giving from four sources of contributions-individual
(living) donors; bequests by deceased individuals; foundations; and
corporations. All four sources of giving are estimated to have increased their
contributions in 2004 by 4 to 7 percent.
Individual giving, the single largest source, rose by an estimated 4.1
percent in 2004 to reach $187.92 billion.
"Living individuals account for three-quarters of total charitable giving
in the U.S. and have done so since Giving USA began publication," said Ray
Clements, chair of the American Association of Fundraising Counsel, which
launched Giving USA as a service to the nonprofit sector in 1956. "About 70 to
80 percent of Americans contribute annually to at least one charity. Being a
'philanthropist' does not merely mean making huge gifts; it means giving to
any cause that you value."
Since its inception 50 years ago, Giving USA has tracked contributions to
nonprofits in different subsectors or categories of services. These subsectors
now include religious organizations, educational institutions, health
charities, human services agencies, organizations that promote public or
societal benefit (such as foundations, United Way, United Jewish Appeal and
others), institutions in the arts, culture, or humanities, environment or
animal welfare groups, and organizations engaged in international affairs or
international aid.
"Religious organizations received the single largest share of
contributions, with more than $88 billion in estimated contributions to
congregations and other religious entities for 2004," said Eugene Tempel,
Ed.D., CFRE, executive director of the Center on Philanthropy, where Giving
USA is researched and written. "Education is the next-largest category for
giving, receiving about $34 billion in 2004."
Giving to all subsectors increased in 2004, at rates ranging from growth
of 7.0 percent for environmental and animal welfare organizations to 0.8
percent for international affairs and development. Adjusted for inflation, all
subsectors except two-international affairs and development and human
services-saw growth in giving in 2004.
After two years of double-digit rates of growth, giving to international
affairs and development declined by 1.8 percent (adjusted for inflation) in
2004. Organizations in the human services sector saw giving drop (adjusted for
inflation) by 1.1 percent, which is the third year in a row for a decline in
this subsector.
In the annual Giving USA survey, 55 percent of responding organizations
reported increases in charitable gifts received in 2004 compared with 2003.
The largest organizations-those with charitable contributions totaling $20
million or more-were the most likely to report an increase in giving, with 60
percent saying giving was up in 2004. This is probably because these
organizations are likely to have a relatively large number of staff members
and volunteers engaged in fundraising. Large organizations are more likely
than small groups to have the resources to continue fundraising in lean years
and to remain in many donors' minds when the economy improves.
Among small organizations -- those with less than $1 million in charitable
contributions -- just under half saw an increase in charitable revenue in
2004. Compared with 2003, last year was more difficult for some small
organizations; 37 percent reported that charitable contributions dropped in
2004, compared with only 29 percent in 2003.
In medium-sized organizations -- those with charitable revenue between
$1 million and $20 million -- roughly 55 percent of organizations reported
increases in charitable revenue in both 2004 and 2003, and roughly 40 percent
in both years reported a decline, with about 5 percent reporting no change.
Methodology
Giving USA's annual estimates are based on original surveys of
organizations and econometric studies using tax data, government estimates for
economic indicators, and information from other research institutions. Sources
of data used in the estimates include the Internal Revenue Service, the U.S.
Department of the Treasury, the Bureau of Economic Analysis, The Foundation
Center, Independent Sector, the Council for Aid to Education, the National
Center for Charitable Statistics at the Urban Institute, and the National
Council of Churches of Christ.
Giving USA estimates the percentage of change in giving to subsectors
(health, arts, education, religion, etc.). Except for giving to religion,
these estimates are developed by the Center on Philanthropy at Indiana
University based on a survey conducted by Walker Information Group. Rates of
change for 2004 are based on responses from 910 organizations.
A Note about Inflation Adjustments
Inflation-adjusted rates of change are based on estimates that are
calculated using a Bureau of Labor Statistics inflation converter, which
rounds to two decimal points. When comparing the inflation-adjusted rates of
change to rates of change in current dollars, the difference between the two
is not a constant 2.7 percentage points (the rate of inflation used in the BLS
converter for 2004). This is a by-product of the rounding and is not due to
the use of a different measure of inflation or an error in calculation.
The complete Giving USA 2005 report, with data covering giving in 2004,
will be available in late June 2005. Giving USA Foundation also publishes a
quarterly newsletter, Giving USA Quarterly. Both may be ordered by calling
847/375-4709 or by downloading an order form from http://www.aafrc.org .
Giving USA 2005 (with data for 2004) is $65. Giving USA Presentation on CD is
$135. Giving USA book and subscription to the Quarterly is $125. Giving USA
book, subscription to the Quarterly, and Presentation on CD is $195. Single
issues of Giving USA Update are $35. Costs do not include shipping and
handling. All orders must be prepaid.
SOURCE Giving USA Foundation
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Related links:
http://www.aafrc.org
CONTACT:
Sharon Bond for Giving USA Foundation,
+1-847-375-4836
NOTE TO EDITORS: Data for 1964 through 2004 are available upon
request. The data show sources of contributions by year in
current and inflation- adjusted dollars and allocation of gifts
by type of recipient organization, also in current and
inflation-adjusted dollars. Data also are available showing total
giving as a percentage of Gross Domestic Product; individual
giving as a percentage of personal income; and corporate giving
as a percentage of corporate pre-tax profits. The preferred
citation for Giving USA is: Giving USA, a publication of Giving
USA Foundation, researched and written by the Center on
Philanthropy at Indiana University. For scholarly citations, the
preferred form is the American Psychological Association style as
follows: Giving USA. (2005). Giving USA Foundation is the
business name of the AAFRC Trust For Philanthropy, which is the
educational and research initiative of the American Association
of Fundraising Counsel.
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