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American's gave an estimated $ 358 billion to charity in 2014.
Surpassing the peak last seen before the Great Recession.
This according to the 60th anniversary edition of Giving USA,
that total slightly exceeded the previous high benchmark year of 2007.
When giving hit an estimated in inflation adjusted total of $355 billion.
The Giving USA survey is published by Giving USA Foundation, which was
established to advance philanthropy through research and education.
The report is researched and
written by the Indiana University Lily Family School of Philanthropy.
According to the most recent report, the 2014 total jump 7.1% in current dollars.
Over the estimated $339 billion, that Americans donated in 2013.
In addition, 2014 marked the fifth year in a row where giving went up.
The average annual increase was 5.5% in current dollars.
All four sources that comprised total giving, Individuals 72% of the total,
Corporations 5%, Foundations 15% of the total giving and
Bequests 8% up their 2014 donations to America's 1 million plus charities.
A more detailed review of the 2014 charitable giving by
source shows Individual giving $258 billion,
increased 5.7% in current dollars.
Foundation giving for the year, $53 billion, was 8.2% higher than 2013.
Bequest giving of $28 billion increased by 15.5% over 2013.
And finally, Corporate giving, $17 billion,
increased 13.7% over the 2013 Giving year.
A few additional observations about giving in 2014.
Large gifts, those of $200 million or more made a very large impact.
This year survey included several very large gifts greater that $200 million
a few were greater than 500 million, and one was nearly $2 billion.
The majority of these mega gifts,
were given by relatively young tech entrepreneurs.
These gifts are high impact and
are addressing many critical issues of our time, particularly medical research.
The jump in individual giving of 5.7% made the greatest impact of all.
The 5.7% more that individuals donated in 2014 over the previous
year accounted for 58% of last year's total growth in giving.
Finally, Foundation giving is on the rise,
not only did total giving by foundations grow by 8.2% in 2014,
gifts from both community and independent foundations showed consistent growth.
The annual changes in this category are influenced most by grants from independent
foundations.
As their 2014 gifts were 7.8% higher than in 2013,
and accounted for 74% of the category's total.
All of this is good news.
The results of this year's report are cause for optimism that giving
will soon return to and exceed the high level scene prior to the Great Recession.
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This is a positive not only for the financial outlook for
charitable organizations but also an indicator that the growth in
the development profession will continue as well.
The flip side of where charitable donations come from, of course,
is where those gifts go.
Giving USA's research covers what happens within nine different categories of
charities.
And here's what 2014 looked like for each.
Contributions to Religion, at $114 billion,
showed an increase of 2.5% in current dollars but
a modest 0.9% when adjusted for inflation.
Historically gives to religion and
have always led the way into total dollar commitment.
However, this percentage of the overall pie has been on the decline for
much of the past 15 years.
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Gifts to Education increased to $54 billion or
4.9% increase over the previous year.
Contributions to Human Services totaling $42 billion,
was 3.6% higher than in 2013.
Gifts to Health Initiatives totaling over $30
billion in 2014, grew by 5.5%.
Contributions to organizations supporting Arts, Cultures,
and Humanities, at an estimated $17.23 billion,
showed a growth in current dollars of 9.2% in 2014.
Gifts to support the environment or animal causes, total %10.5 billion for
the year 2014, up 7% in current dollars over the previous year.
Those gifts labelled for public society benefit totaling over $26 billion for
2014 increased 5.1% in the current year.
Contributions to Foundations, primarily to family or independent foundations,
an estimated $41.62 billion in 2014, grew by 1.8%.
Finally, gifts to International Affairs.
The $15.10 billion estimate for 2014 actually
decreased by 2% in current dollars from 2013.
Primary influencers in this categories decline or the decline it's support for
international natural disasters.
Fewer disasters of significant scale has a direct correlation to
total giving in this space.
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So, it's obvious that philanthropy has a significant impact on our lives and
society.
Now, the question for
all major gift fundraiser is how do I get my piece of the pie?
Before we delve too far into that discussion,
I would like to take a moment or two to provide a guide to some terminology that
is often used in the development profession.
And I am apt to use during the course of these modules.
My apologies if some seem elementary.
However, I believe it is important that we all have the same base of understanding
on which to build.
501(c)(3), this is the section of the internal revenue code
that defines non-profit, charitable, tax-exempt organizations.
501(c)(3) organizations are further defined as public charities,
private operating foundations and private non operating foundations.
Jason WohlmanAssociate Vice Chancellor for University Development
