Jeffrey Byrne & Associates - Capital and Endowment Fundraising Campaign Consultants.

Overview of Giving USA 2005 Key Findings
Giving USA Foundation™

Jeffrey Byrne & Associates, Inc. is a membership of the American Association of Fundraising Counsel Total charitable giving for 2005 is estimated to be $260.28 billion. This is an increase of 6.1 percent compared with the revised estimate of $245.22 billion for 2004. Adjusted for inflation, the increase is 2.7 percent.

An estimated $7.37 billion in disaster relief giving is included in the total for 2005. Without this additional amount—and assuming that the disaster relief amount is all new money that would not have been donated if there had been no disasters—the change from 2004 to 2005 is from $245.22 billion to $252.99 billion, or an increase of 3.2 percent (and a decrease of 0.2 percent adjusted for inflation).

Individual contributions reached an estimated $199.07 billion in 2005, an increase of 6.4 percent (2.9 percent adjusted for inflation). Individuals gave an estimated $5.83 billion in disaster relief contributions in 2005. With that amount not included in the estimate, individual giving would be $193.24 billion, an increase of 3.3 percent over the revised estimate of $187.11 billion for 2004 (and a decline of 0.1 percent compared with 2004 after adjustment for inflation). This assumes that none of the disaster relief contributions would have been made to other charities had there been no disasters. Individual giving, including the estimate for disaster relief contributions, was 76.5 percent of the total estimated giving for 2005.

Charitable bequests are estimated to be $17.44 billion for 2005, a drop of 5.5 percent compared with the revised estimate of $18.46 billion for 2004. This is a decline of 8.6 percent when adjusted for inflation. No charitable bequests are known to be for disaster relief in 2005. Charitable bequests are estimated to be 6.7 percent of total giving for 2005.

Foundation grantmaking rose to an estimated $30.0 billion for 2005, for independent, community, and operating foundations, based on the Foundation Center’s survey conducted in January and February 2006. This is an increase of 5.6 percent (2.1 percent adjusted for inflation) compared with the revised amount of $28.41 billion for 2004, which reflects grantmaking reported on IRS forms 990-PF and 990 (for community foundations) filed for 2004 and tabulated by the Foundation Center. An estimated $160 million in grants paid in 2005 was for disaster relief, with additional commitments announced for future grantmaking. Without the paid disaster relief grants included, the estimate of foundation grantmaking for 2005 is $29.84 billion, an increase of 5.0 percent (1.5 percent adjusted for inflation). Foundation grantmaking is estimated to be 11.5 percent of total giving in 2005.

Corporate giving in 2005 reached an estimated $13.77 billion, counting $3.6 billion in corporate foundation grantmaking as estimated by the Foundation Center, which includes some corporate foundation relief giving. Corporate giving increased an estimated 22.5 percent over the revised total of $11.24 billion for 2004 (18.5 percent adjusted for inflation). Of the amount for 2005, an estimated $1.38 billion is for disaster relief giving, including both cash and in-kind donations. Without that amount, the estimate for corporate giving is $12.47 billion, an increase of 10.9 percent (7.3 percent adjusted for inflation). Corporate contributions are an estimated 5.3 percent of total contributions for 2005.

Gifts to religious organizations rose to an estimated $93.18 billion, an increase of 5.9 percent (2.5 percent adjusted for inflation) over the revised estimate of $87.95 billion for 2004. Gifts to religious organizations in 2005 include an estimated $431 million donated for disaster relief. Without this amount included, the estimate is $92.75 billion in 2005, a change of 5.5 percent (2.0 percent adjusted for inflation). Uncounted are in-kind donations and thousands of volunteer hours contributed through congregations directly to regions affected and survivors of the natural disasters. Giving to religious organizations included in the Giving USA study is estimated to be 35.8 percent of total giving in 2005.

Giving to educational organizations is estimated at $38.56 billion for 2005, an increase of 13.1 percent (9.4 percent adjusted for inflation). This estimate is based on a combination of sources, including findings from the Council for Aid to Education through June 2005 and a Giving USA survey for all of 2005. Very little of the education estimate reflects donations for disaster relief or recovery. Giving to educational organizations is estimated to be 14.8 percent of total giving in 2005.

Giving to foundations is estimated by the Foundation Center to be $21.70 billion, a change of 6.8 percent (3.3 percent adjusted for inflation) compared with the $20.32 billion reported by the Foundation Center in gifts to foundations in 2004. About $50 million ($0.05 billion) in 2005 was reported in gifts to community foundations for disaster relief activities. For 2005, gifts to foundations are approximately 8.3 percent of all giving.

Gifts to health organizations are estimated to be $22.54 billion in 2005, an increase of 2.7 percent (and a decline of 0.7 percent adjusted for inflation) compared with 2004. Very little of the giving to health-related organizations reported for 2005 was for disaster relief, although health care organizations were directly engaged in providing rescue and relief services, and often the personnel of these organizations were on the “front lines” of disaster relief efforts. Gifts to health organizations are an estimated 8.7 percent of total charitable giving for 2005.

Giving to human services organizations rose to $25.36 billion in 2005. The estimate is 32.3 percent more than the estimate of $19.17 billion for 2004 (28.0 percent adjusted for inflation). It includes $3.31 billion in disaster aid contributions. The Giving USA survey found an increase of 15.0 percent (11.3 percent adjusted for inflation) even before the addition of disaster gifts. This growth, before disaster giving is included, reverses a prior three-year decline in inflation-adjusted giving to human services organizations. Giving for human services organizations was 9.7 percent of total estimated giving.

Giving for public-society benefit organizations reached an estimated $14.03 billion, an increase of 8.3 percent (4.7 adjusted for inflation). This includes an estimated $263 million in contributions for disaster relief. With those contributions excluded, giving to organizations in this subsector was $13.77 billion, or an increase of 6.2 percent (2.8 percent adjusted for inflation) compared with 2004. Giving for organizations in this subsector, which includes United Ways, Jewish Federations, commercially sponsored donor-advised funds, civil rights organizations, and a number of other types of charities, was 5.4 percent of total estimated giving for 2005.

Contributions for organizations in the arts, culture, and humanities subsector dropped by 3.4 percent in 2005, to $13.51 billion. This is a decline of 6.6 percent adjusted for inflation. Approximately $40 million was contributed to organizations in this subsector for disaster relief. Gifts to arts, culture, or humanities organizations were 5.2 percent of total estimated giving for 2005.

Gifts for organizations in the environment and animals subsector reached an estimated $8.86 billion, an increase of 16.4 percent (12.6 percent adjusted for inflation). This year’s estimate includes about $30 million of contributions received by animal welfare organizations that organized disaster relief efforts for pets. Without this, giving to organizations in this subsector was $8.83 billion, an increase of 16.0 percent (12.2 percent adjusted for inflation). Giving for organizations in the environment and animals subsector was 3.4 percent of total estimated giving.

Gifts to organizations engaged in international affairs, including international relief and aid, reached an estimated $6.39 billion in 2005, reflecting an estimated $1.14 billion in relief contributions after the tsunami of December 2004 and the earthquake of October 2005. The total in 2005 is a change of 19.4 percent (15.6 percent adjusted for inflation). Without the amount for disaster relief, giving to organizations in this subsector fell to $5.25 billion, a drop of 1.9 percent (-5.1 percent adjusted for inflation). Giving for organizations in the international affairs subsector was 2.5 percent of total estimated giving.

Unallocated contributions are estimated to be $16.15 billion, or 6.2 percent of the total. Unallocated giving includes gifts to newly formed organizations; individual and corporate deductions expected to be claimed in 2005 for gifts made in prior years (carried over); amounts that donors deduct at a value different from what the nonprofit reports as revenue; gifts and grants to government entities claimed by donors but not reported as received at a 501(c)(3) charity; and foundation grants to organizations located in another country.