Giving USA Presentation with Edwards WildmanPresentation Transcript
Giving USA 2012The Annual Report on Philanthropy for the Year 2011
Giving USA 2012 is published by Giving USA Foundation™ & and is researched, written, and produced byThe Center on Philanthropy at Indiana University
Back to Basics:Implications for Fundraising What do the GivingUSA numbers mean for America’s philanthropic community ?
The Marketplacefor Charitable Dollars
Competition for Donors is Fierce• With the increased competition for donors’ dollars,nonprofits must present a more compelling case forgiving via a variety of channels.• Donors are increasingly savvy, financially literate, anddemanding of transparency and accountability.• Year-to-year support is no longer guaranteed fromnew or traditional donors.• Small and medium sized nonprofits must becomeincreasingly ―professional‖ in their fundraising efforts tomatch the ―powerhouse‖ nonprofits!
Then and Now:Giving in 2001 vs. 2011 2001 2011 TOTAL $212 billion $298.42 billion Individuals $160.72 $217.79 75.8% 73% Foundations $25.90 $41.67 12.2% 14% Bequests $16.33 $24.41 7.7% 8% Corporations $9.05 $14.55 4.3% 5%
Recovering from"The Great Recession"• Historically, giving is a lagging indicator followingdownturns in the economy.• Giving grows more slowly—or declines—in recessionyears.• History suggests giving will increase as the economyimproves.
Recovering from―The Great Recession‖• While most individuals continue to give in hard times,many will decrease their giving while some will stopgiving altogether. Getting them to resume giving is achallenge!• Various economic indicators point to the increasedconfidence that individuals had in their financial future in 2011,providing explanation for the boost in giving by individuals: – Consumer confidence rose 3.6%; – The unemployment rate fell 9.6%; and – Personal consumption expenditures rose 4.7%.
Individual Giving as aShare of DPI
How Much Do Donors Have ―Left to Give?‖• There is no real ―donor fatigue!‖• Disposable Personal Income (DPI) is the amount availableto households after payment of taxes, or what they have ―leftto give.‖• Individual giving as a percentage of DPI (in currentdollars) remained at 1.9% in 2011, the same as in 2009and 2010.• This figure is a decline from the high of 2.4% realized in2005 and remains below the 2.0% threshold seen between1971–1984 and 1997–2008.
Giving by Source:Who Gives What?
Giving by Type of Recipient:Where Do the Gifts Go?
Donor-Advised Funds:Bankrolling Future Projects• There has been a substantial increase in giving todonor-advised funds over the last ten years.• Moderate-income Americans are tantalized by DAF’s anduse them creatively, especially because they do not have theresources or inclination to start a family foundation.• One hypothesis: unhappy donors are banking their futuredollars now to use on ―transformational projects‖ later on.• Implication for nonprofits: donors that aren’t currentlyinspired to give, or who haven’t found the right project,will save their charitable dollars for tomorrow while stillreceiving the tax benefits for today.
Then and Now:Changes in Recipients Estimated giving in current dollars held steady orincreased modestly in all subsectors except international affairs, which saw a sizable increase, and religion, which saw a slight decrease.• For 2011, notable increases included: International affairs 7.6% Environment/animals 4.6% Arts, culture, and humanities 4.1% Public-society benefit 4.0%• The religion subsector saw a decline in 2011: –1.7%
Final Thoughts:The Future of Philanthropy• Decreased participation in religious life will result indecreased giving for religious organizations, which willdefinitely impact other donor priorities.• Giving to international causes will probably continue toincrease, independent of the ―natural disaster effect‖ (i.e.Haitian relief).• Today’s donors are less geographically parochial and seemto be willing to give outside of their communities.• Colleges and universities continue to approach fundraisingin a highly sophisticated manner, which will impact othernonprofit sectors.
Conclusion and Q&A Download the Giving USA 2012 free Executive Summary at www.givingUSAreports.org Learn more about The EHL Consulting Group at www.ehlconsulting.com