 |
|
15 June 2009
Giving USA 2009: Giving Tops $300 Billion in 2008
Giving Down only Slightly in Worst Economy Since Depression
 U.S. charitable giving in 2008 exceeded $300 billion for the second year in a row, according to Giving USA 2009. Donations to charitable causes in the United States reached an estimated $307.65 billion in 2008, a 2 percent drop, in current dollars, from 2007's record-setting $314.07 billion. (The total for 2007 has been revised upward since initial reports put it at $307 billion.)
The 2008 results show the first decline in giving, in current dollars, since 1987; this is only the second time Giving USA has reported a decline since it began publishing annual reports in 1956 (www.givingusa.org). The report, now in it's 54th year, is a publication of Giving USA Foundation™, researched and written by the Center on Philanthropy at Indiana University. Giving USA is a public outreach initiative of Giving USA Foundation™. The Foundation, established by Giving Institute: Leading Consultants to Non-Profits, endeavors to advance philanthropy through research and education.
"Given a 40 percent decline in the market in 2008, what turned out to be a full year's worth of recessionary economic indicators, and sharp drops in the housing and job markets, the fact that giving only declined by about 2 percent in '08 is pretty phenomenal," said JB&A Executive Vice President Jennifer Furla, who is a member of the Giving USA Foundation Board of Directors.
"It would have been easy for donors to say 'not this year' when appeals came their way," said Giving USA Foundation Chairman Del Martin. "And we definitely did see belt-tightening. This drop in giving meant that nonprofits have had to do more with less over the past year, but it could have been a lot worse."
A bright spot is that giving remained stable in relation to the overall economy, as measured by percentage of Gross Domestic Product (GDP). The estimates for 2008 indicate that giving was 2.2 percent of GDP, compared to 2.3 percent in 2007. Figures for both years, as a percentage of the economy, are at a higher level than the overall trend of the past 40 years. According to Giving USA, giving as a percentage of GDP hit an all-time high in the late 1960s, dropped to about 1.7 - 1.9 percent of GDP in the 1970s, and remained there until the stock market run-ups in the mid-1990s. This, according to some, suggests that we have successfully "raised the bar" for charitable giving in the U.S., said Furla.
The drop in giving last year has had effects across the board. Two-thirds of public charities receiving donations saw decreases in 2008. The exceptions were charities serving the areas of religion, public-society benefit, and international affairs. The other types of charities (or subsectors) examined in Giving USA are: arts/culture/humanities; education; environment/animals; health; human services; and foundations.
Contrary to giving trends during past recessions, giving to the human services subsector was down sharply in 2008, by about 12.7 percent in current dollars and 15.9 percent in inflation-adjusted dollars. Last October, the Giving Institute and the Giving USA Foundation published a Spotlight bulletin, "Giving in Recessions", reporting that annual giving had trended upward overall during the 11 recessions prior to 2008. Last year, then, was an exception—and one of particular note to nonprofit leaders in the human services sector and institutional funding community. The impact to human services becomes more critical when comparing the subsector's 2007 and 2008 giving. In 2007, giving to human services, in current dollars, was up 8.4 percent over the previous year, but declined by an estimated 12.7 percent in 2008: a big swing in funding that the sector had to absorb just as demand for services simultaneously grew. (see sidebar)
Giving to religion increased in 2008, topping $100 billion for the second year in a row, and increasing its share of overall giving from 33 percent to 35 percent. Giving to religion increased an estimated 5.5 percent (1.6 percent adjusted for inflation) to $106.89 billion, and accounted for an estimated one-half of all individual giving, not counting gifts made through bequests (5.6 percent) or family foundations (about 3 percent).
Other Changes in Giving by Type of Recipient
Education organizations received an estimated $40.94 billion, or 13 percent of the total. Gifts to this type of organization decreased 5.5 percent (-9 percent adjusted for inflation).
Foundations received an estimated $32.65 billion, according to calculations by the Foundation Center and Giving USA.The estimate for 2008 is a decrease of 19.2 percent (-22.2 percent adjusted for inflation).
Gifts to health organizations are estimated to have been $21.64 billion, or 7 percent of total estimated giving. The decrease in giving to this subsector for 2008 is estimated to be 6.5 percent (-10 percent adjusted for inflation).
Estimated giving to the public-society benefit subsector was $23.88 billion in 2008, or 8 percent of total estimated giving. The increase is 5.4 percent (1.5 percent adjusted for inflation).
Arts/culture/humanities organizations received an estimated $12.79 billion in 2007, or 4 percent of total estimated giving. The decrease is 6.4 percent (-9.9 percent adjusted for inflation).
International affairs organizations, which include relief, direct aid, exchange, and other programs focused on international issues, received an estimated $13.3 billion, or 4 percent of total estimated giving. This is growth of 0.6 percent (but a decrease of 3.1 percent when adjusted for inflation).
Giving to the environment/animals subsector is estimated to have been $6.58 billion, or 2 percent of total estimated giving. This estimate reflects a decrease of 5.5 percent (-9 percent adjusted for inflation).
Changes in Giving by Source
Individual giving, which is always the largest component of charitable contributions, was an estimated $229.28 billion, or 75 percent of the total, in 2008. This is a decrease of 2.7 percent compared with 2007 estimates (-6.3 percent adjusted for inflation).
Charitable bequests are estimated to have totaled $22.66 billion in 2008, a decrease of 2.8 percent (-6.4 percent adjusted for inflation). They make up 7 percent of total giving.
Corporate giving, which is closely tied to corporate profits, is projected to have decreased 4.5 percent (-8 percent in inflation-adjusted dollars), to $14.5 billion. It is estimated to equal 5 percent of all charitable giving.
Foundation grantmaking, according to data from the Foundation Center, was $41.21 billion, an estimated 3 percent increase in current dollars but a drop of 0.8 percent adjusted for inflation. It is 13 percent of total giving for 2008.
Defining Your Presence on the 'Net'
Pay Attention to What You Write
By Terri S. Turner, Client Services Director
Midwest Region
re: need yesterday
TO: tsturner
CC: tsturner's boss
terri need h2h svy and cvr ltr w/sase IMMEDIATELY pls send asap thx LKT
 Yes, this is a test. How many broken email etiquette rules can you find in the above example? One? Two? More than three?
According to Tim Sanders, former chief solutions officer at Yahoo! and author of the DVD, Dirty Dozen Rules of Email Etiquette, the above email message violates 4 rules.
- Do not send email at "unprofessional times" or after the fact. If you wouldn't call your recipient at 4 a.m., don't email them then, either. The subject line in the offending email states: "need yesterday." Accordingly, this message is not fit for email; due to the timeline, the message warrants a phone call.
- Do not copy an email over someone's head. As you can see in the cc line, the email is copied to the recipient's boss. Handle situations that involve levels of authority in person, so everyone can hear the information at the same time.
- Do not send cryptic email messages. Mr. Sanders defines cryptic as "using poor English in exchange for efficiency in cryptology." Included in his list of don'ts are: improper grammar, incomplete sentences, typing everything in lower case, and using abbreviated words and unfamiliar acronyms. In addition, your word choice, punctuation and style represent your brand on the ‘net. When composing your message, take the time to influence the reader's perception of your intelligence and your organization's image.
- Your words should not scream at the reader. When you write in CAPITAL letters, it is as if you are shouting at the reader. Often, capital letters can trigger an unwanted response and can be misunderstood.
By following the above rules of email etiquette, the opening email might read like this:
Terri,
I need the Heart-to-Heart survey and cover letter with self-addressed, stamped envelopes. Please send them to me as soon as possible.
Thank you.
Lynn
In today's world of global communication, we are flooded with instant information. While email provides efficient communication to constituents around the globe, instant and quick does not always translate to professional and effective. By using proper email language, you can convey a professional image.
In the book The Complete Idiot’s Guide to Office Politics, the importance of business communication is emphasized: “A business communication is business, period. As a result a certain degree of formality is required. Just because email tends to be more immediate and personal, it cannot be casual. Business email must be businesslike.”
When using proper grammar in a formal letter format, you communicate respect and professionalism. Even a request with a sense of urgency, as shown above, leaves the reader feeling compelled to respond without offence or irritation.
Last, but not least, experts recommend that you re-read your email before pressing the send button. This simple last step will ensure that your word choice will illustrate a professional internet imprint with high integrity for you and your organization.
"My theme for philanthropy is the same approach I used with technology: to find a need and fill it. " - An Wang
Creating a Culture of Giving in Your Organization
By Barbara Hershfelt
, Vice President
Midwest Region
 The recently-released Giving USA reports that 2008 charitable giving in America was again over $307 billion, in spite of steep economic challenges last year, reflecting how deeply philanthropy is ingrained in our American culture. We give to our churches, synagogues, educational institutions, health organizations, human services agencies, and far many other causes. I feel lucky to live in a society where people care about their neighbors and are willing to share their wealth.
Some of the nonprofits that I have worked with over the years have an innate, deep-rooted culture of giving. Everyone understands the needs, and gives what they can to the organization. Others aren't so lucky to have an inherent spirit of philanthropy in their nonprofit's culture.
Fortunately, there are things we can do to help create a culture of giving.
First, the organization's need must be top-of-mind. From the volunteers to the staff, there must be an understanding of the organization's mission and vision, the need, and the path to achieve the goals. Taking the time to educate, train and communicate with your team will pay off with informed, passionate ambassadors for your nonprofit. Periodic updates to your top management team and core volunteers, whether in the form of a campaign production report, a weekly summary of meals served to the homeless, or a poignant story of how you've changed someone's life through your work, are a great way to share your results. Communicating simple success stories will provide tangible results to help grow your group of supporters.
Once there is an understanding of the organization’s vision and needs, leadership must ensure that everyone has a personal understanding of their role in achieving organization success. I have the pleasure of working with an independent elementary school where the sixth graders run the school store. Their proceeds go back to the school and they are so proud to help in funding a new gym for the entire school to enjoy. In another group, each staff member made a small donation so they could wear blue jeans to work, thus supporting their capital campaign. These efforts can be as important for the organization’s culture as the largest cash donation. To truly build a culture of giving, everyone needs an opportunity to have an impact on the organization, and be appreciated for their support, generosity, and their role in helping the nonprofit further its mission.
Third, leadership must set the tone for the staff and volunteers to truly create a culture of giving. Giving of time, talents and treasures, and leading by example, are all expected of an organization’s leadership. Make fundraising a priority activity for the executive director and other key managers. When staff and volunteers see that fundraising is a priority for the leadership team, this will further other individuals’ commitment to take an active role in giving.
Finally, be focused, but be patient with yourself. Creating a culture of giving is a process. The key is to help others understand the need and fill it.*
*With thanks from An Wang who so aptly said “My theme for philanthropy is the same approach I used with technology: to find a need and fill it. “ -An Wang
For other articles on creating a culture of giving, see “Building a Culture of Philanthropy,” New$ You Can U$e, October 15, 2006, and “Who’s Your Director of First Impressions?”, New$ You Can U$e, March 15, 2006.
|
