Transcript Giving USA 2001 - Kalani Oceanside Retreat

Una O. Osili, Ph.D.
Director of Research
The Center on Philanthropy
March 22, 2010
AGB’s National Conference on Trusteeship
www.agb.org
Resources
Giving USA 2009, a publication of Giving USA Foundation,
researched and written at the Center on Philanthropy
Giving USA Spotlight on giving during recessions and economic
slowdown, released September 2008 and 2009
(www.givingusa.org)
IRS records for charitable giving
Standard & Poor’s 500 stock index
Economic indicators from the U.S. Bureau of Economic Analysis
Prior editions of Giving USA
Philanthropy Giving Index 2008 and 2009
All analysis by the Center on Philanthropy at Indiana University
Total giving, 1968–2008
$ in billions
350
300
250
200
150
100
50
0
1968
1973
1978
1983
1988
1993
1998
2003
Recessions in dark gray: 1969–70; 1973–75; 1980; 1981–82;
1990–91; 2001; 2007–2008
2008
Who Gives: Sources?

Americans gave $307.65 billion in philanthropy in 2008.
(Giving USA 2009)

With average growth, Americans are expected to give $4 trillion in philanthropy over
the next 10 years. (Giving USA 2009)

65% of American households give and 30% of Americans volunteer.
(Center on Philanthropy Panel Study)
Individuals
$229.28
75%
* Dollars in billons
Source: Giving USA Foundation™ / Giving USA
2009
Corporations
$14.5
5%
Foundations
$41.21
13%
Bequests
$22.66
7%
For What Uses?
1.
Religious/Faith-Based
($106.89 billion) 35%
2.
Education
($40.94 billion) 13%
3.
Human Services
($25.88 billion) 9%
4.
Health
($21.64 billion) 7%
5.
Public-Society Benefit
($23.88 billion) 8%
International Environment
and Animals
Affairs
Grants to
$6.58
Arts, Culture, $13.30
Gifts to
Individuals*
2%
and Humanities 4%
$3.71 Foundations
$12.79
Unallocated
$32.65
1%
4%
giving
11%
Public-Society
$19.39
Benefit
6%
$23.88
8%
Health
$21.64
7%
Human
Services
$25.88
9%
Education
$40.94
13%
Religion
$106.89
35%
*Foundation grants awarded to individuals
Source: Giving USA 2009
What has happened to date in the 2008 recession?
• Giving USA 2009 estimate for giving in 2008 was $307.65
billion -a decline of 2% from the previous year
(-5.7% adjusted for inflation).
• One year decline for 2008 is close to one year decline for 1974.
BUT
• Cumulative change to date in this recession for major economic
indicators are more severe than the 1973-1974 recession.
Changes in giving by source inflation-adjusted $
Source: Giving USA Foundation TM/Giving USA 2009
Changes in giving by recipient organization
inflation-adjusted $
The highest increases 2007-2008:
• Religion
+1.6%
• Public-society benefit
+1.5%
The biggest decreases 2007-2008:
• Human services
-15.9%
• Health
-10.0%
• Arts, culture & humanities
- 9.9%
Source: Giving USA Foundation TM/Giving
USA 2009
The Context – Key Economic Indicators
Years of
Highest rate Highest to
depression
of
lowest
or recession unemployment
DJIA
in period
1929-33
1973-75
2007- fall
2009
Personal
income
Dow Jones
Industrials
Average
GDP
Corporate
profits
-55%
-25%
-101%
-15%
-1%
-10%
-2.2%
-21%
37.6%
-85%
-24%
(1933)
(Feb 29:
(29 – 33)
9.0 %
Jul 32)
-50%
0.6%
(May 75)
(Jan 73;
(73-75)
10.2%
Dec 74)
-53%
-3.8%
-39%
( Sept 09)
(Jul-07;
(qtr 4 07 to
Mar-09)
qtr 2 09)
(from Dec
07 to Jun
09)
(qtr 4 07 (qtr 4 07 to
to qtr 1
qtr 1 09)
09)
Itemized individual giving and the Dow,
1971-1983
Different impacts now on giving: Dow and Income
From 1930 to 1963,
• 10 point increase in the Dow Jones Industrials Average
(DJIA) was associated with a very small increase
(approximately $1.85 million) in giving nationally
• $1 billion increase in personal income nationally was
associated with an $11.6 million increase in giving
From 1964 to 2006,
• 10 point increase in the DJIA was associated with $16
million more in giving nationally
• $1 billion increase in personal income was associated with
$15 million more in charitable giving
Percentage of surveyed charities reporting that gift receipts were
up, down, or not changed compared with the prior year, per
GuideStar.org (2008)
3
48
4
3
3
4
4
23
22
19
19
24
26
27
25
35
2
35
25
22
22
28
2002
39
2003
50
49
50
52
2004
2005
2006
2007
38
2008
Don't know
Decreased
Stayed about the same
Increased
100
80
60
40
20
0
Philanthropic Giving Index
Present Situation Index
Expectations Index
PGI: Current Impact of the U.S. Economy on Fundraising
2.2
7.7
19.5
Percentage
9.5
42.9
21.1
35.9
13
10.6
43.5
49.6
28.2
23.5
90.3
21.6
76.5
71.2
36
36
28.9
35.3
Average 2003 Average 2004 Average 2005 Average 2006 Average 2007 Average 2008 Average 2009
Negative
None
Positive
Corporate Social Responsibility
Current trends in corporate social responsibility:
• Corporations are focused on aligning philanthropy with business goals and core
competencies
• Want to “brand” their philanthropic practices
• Interested in establishing partnerships with the nonprofits they work with, and taking a
more active role in decisions and activities.
Impact of the economy on companies’ philanthropy $s:
• Remained constant: <50% of companies surveyed
• Decreased: 25% of companies surveyed
• Increased: 25% of companies surveyed
What can we expect?
• Three to four years for individual giving to recover to pre-recession
levels once recession over.
• Foundations: Much longer – following Foundation Center results –
for foundation giving to recover. Minimum of 3 years because of
asset averaging over 20 quarters at many large foundations.
• Bequests more or less follow stock market, but typically with a twoyear lag because large estates take time to settle.
• Corporate giving is changing– or more accurately, shifting to other
forms: products, services, volunteer linkages, co-branding, etc.