Despite more downcast estimates, the Giving USA Foundation and its research partner, the Center on Philanthropy at Indiana University, released a report showing American charitable contributions have declined only about 4% in 2009. The total contributions, given by U.S. individuals, corporations and foundations, slid from $315.08 billion in 2008 to $303.75 billion in 2009.
Individual contributions dropped by 0.4% while charitable bequests fell more heavily by 23.9%, which echoes the IRS report given in late 2009 of the significantly high degree of bequest giving in 2008. The 2009 estimate is 2.5% higher than the 2007 estimate. Grant making by private, community, and operating foundations was $38.44 billion, dropping 8.9%– a rate lower than expected by the two organizations.
Giving USA Foundation Chair Edith H. Falk remarked that although the economic times in 2009 were strenuous, Americans still contributed quite generously. “While overall giving declined, many donors-including individuals and foundations-made special efforts in 2009 to respond to greater humanitarian needs,” commented Falk. Furthermore she mentioned that some nonprofits received unprecedented aid from corporations, specifically from information technology firms and pharmaceutical manufacturers.
Charitable beneficiaries that suffered the most were those who expected to receive their gifts through capital campaigns, contributions to endowments, and donations of art and property such as recipients in education, grant making foundations, cultural organizations, and public-society advancement organizations.
Foundations (private, community and operating) saw a decline of 8% in donations, a drop to $31 billion. Still, they received 10% of total contributions.
Although charitable giving has declined again this year, the result is not as grim as forecasters predicted. ASAE, along with other nonprofits, are committed to ensuring that tax-exempt organizations are not prevented from growing through the current economic times and opposes limiting charitable deductions.
by Narine Mehrabian
