Giving USA 2011 PowerPoint™ Presentation USER GUIDE Graphs in this PowerPoint™ presentation are developed for use in presentations only. Purchasers do not have rights to prepare handouts using these materials. Please ask members of your audience to download the free Giving USA 2011 executive summary at www.givingusa2010.org in order to have material for their own use. GIVING USA 2011 The Annual Report on Philanthropy for the Year 2010 Giving USA 2011 is published by the Giving USA Foundation™ and has been researched and written by Overview What is Giving USA? Sources of giving Types of recipients Rates of change Trends in total giving Trends in sources of giving Trends in types of recipients Trends in number of nonprofit organizations Trends in volunteering What is Giving USA? Most comprehensive annual report about U.S. charitable giving. Estimates for: — Sources of giving; — Amounts received by type of organization. Published by the Giving USA Foundation™. Started in 1956 by the American Association of Fundraising Counsel, now Giving Institute: Leading Consultants to Nonprofits. Made possible by contributions from many. 2010 charitable giving Total = $290.89 billion Sources of Contributions, 2010 Total giving = $290.89 billion. Increase of 3.8 percent (2.1 percent adjusted for inflation). Individuals remain the single most important source. Individuals + charitable bequests = 81 percent of total. Foundation grantmaking = 14 percent of the total. — About three-fifths of independent foundation giving is from family foundations. Individual + Bequest + Family Foundations = 87 percent. Corporate giving is an estimated 5 percent of the total. Types of recipients of contributions, 2010 Total = $290.89 billion Types of recipients of contributions, 2010 Religion remains the largest single recipient at 35 percent of total. After religion, next highest categories are: — Education — Foundations — Human services 14 percent 11 percent 9 percent Estimates grounded in data submitted by organizations to national agencies. — Revisions made when new data available. Unallocated includes gifts to government agencies, public schools (public school foundations are included), or new charities; grants to organizations in other countries; and differences in fiscal year. Changes in giving by source Current $ Changes in giving by source Current $ Total up 3.8 percent in 2010. Increase attributable to modest economic recovery. Individual giving up by 2.7 percent from 2009. Charitable bequests rose an estimated 18.8 percent in 2010 after a very large decrease (38.7 percent) in 2009. Foundation grantmaking decreased an estimated 0.2 percent in 2010. Corporate giving increased an estimated 10.6 percent in 2010, attributable to large in-kind contributions and increased corporate profitability. — Includes grantmaking by corporate foundations. Changes in giving by source Inflation-adjusted $ Changes in giving by source Inflation-adjusted $ Giving rose in 2010 by 2.1 percent, adjusted for inflation. While a positive sign, it is sobering to think that at this rate of increase, it will take five to six years for giving to return to pre-recession levels, adjusted for inflation. Individual giving rose in 2010 by 1.1 percent, adjusted for inflation. Charitable bequests rose 16.9 percent adjusted for inflation in 2010, after decreasing in 2009 according to IRS records. Foundation giving fell 1.8 percent in 2010, adjusted for inflation. Corporate giving increased 8.8 percent in 2010, adjusted for inflation. Changes in giving by recipient organization Current $ Changes in giving by recipient organization Current $ Estimated giving in current dollars held steady or increased modestly in all subsectors except international affairs, which saw a large increase, and environment/animals, which saw a slight decrease. Giving USA estimates growth in giving by: International affairs 15.3 percent Public/society benefit 6.2 percent Arts, culture, and humanities 5.7 percent Education 5.2 percent Giving to foundations 1.9 percent Health 1.3 percent The following subsectors remained steady or declined slightly: Religion Human services Environment/animals 0.8 percent 0.1 percent -0.7 percent Changes in giving by recipient organization, inflation-adjusted $ Changes in giving by recipient organization, inflation-adjusted $ Inflation adjustment uses Consumer Price Index. When 2010 = $100, then 2009 = $98.39. Adjusted for inflation, the following subsectors saw growth: International affairs 13.5 percent Public/society benefit 4.5 percent Arts, culture, and humanities 4.1 percent Education 3.5 percent The following subsectors remained steady or declined slightly, adjusted for inflation: Giving to foundations Health Religion Human services Environment/animals 0.2 percent -0.3 percent -0.8 percent -1.5 percent -2.3 percent Total giving, 1970–2010 Total giving, 1970–2010 Total giving increased in current dollars every year but three since recording began. — 2008 and 2009; and — 1987, when 1986 tax law change led some to “give early” to maximize the tax benefit of giving. Giving grows more slowly—or declines adjusted for inflation— in recession years. In 2008, total giving fell 7.0 percent adjusted for inflation. This is the worst result on record; 2009 follows with a decline in total giving of 6.2 percent, adjusted for inflation. 2010’s inflation-adjusted increase of 2.1 percent is promising but does little to address the overall drop of approximately 13 percent in giving (adjusted for inflation) over the years of the current recession. History suggests giving will increase as the economy improves. Giving by individuals, 1970–2010 Giving by individuals, 1970–2010 Individual giving = $211.77 billion in 2010. Increase of 2.7 percent (1.1 percent when adjusted for inflation). Majority of donors continue to give even as income and wealth fluctuate. Giving usually falls in recessions. Range is from a decline of 11.6 percent (inflation adjusted) for 2008 and an increase of 2.4 percent (inflation adjusted) in 1981. A very small number of households have net worth of $1 billion or more. One mega-gift from this group can change the results. In 2010, six high-net-worth donors made gifts totaling $0.272 billion. This year, such gifts have a negligible impact on total giving by individuals. Giving by bequest, 1970–2010 Giving by bequest, 1970–2010 Charitable bequests = $22.83 billion in 2010. Increase of 18.8 percent (16.9 percent adjusted for inflation). Estimated $18.59 billion in charitable bequests from estates that would normally file federal estate tax returns. Estimates of the average charitable bequest amount per nonfiling estate result in estimated contributions historically ranging from approximately $3 billion to more than $7 billion. Giving USA uses a number reflective of the more conservative end of the spectrum of estimates. Giving by foundations, 1970–2010 Data: The Foundation Center Giving by foundations, 1970–2010 The Foundation Center estimated $41 billion in giving by independent, community, and operating foundations in 2010. −Does not include corporate foundations. Decrease of 0.2 percent (-1.8 percent adjusted for inflation). In 2010, some foundations reduced grantmaking for strategic reasons, but many others were experiencing the effects of the rocky economic period. Giving by corporations, 1970–2010 Giving by corporations, 1970–2010 Corporate giving = $15.29 billion in 2010. Increase of 10.6 percent (8.8 percent adjusted for inflation). 5 percent of total estimated contributions in 2010. According to the Committee Encouraging Corporate Philanthropy, overall corporate giving in 2010 was likely significantly bolstered by an increase of in-kind donations by pharmaceutical companies. Giving by source: Percentage of the total by five-year spans, 1971–2010 Giving by source: Percentage of the total by five-year spans, 1971–2010 Over the past 40 years, the major shift has been a growing share of the total coming from foundations and a lower share from individuals. In part, this is because of the increased number of family foundations and their growing assets. Foundation giving in the 2006–2010 period was higher than in any other period, reaching 13 percent of total giving and rising twice above its lowest level in the years between 1976 and 1985. About three-fifths of the amount contributed by independent foundations is from family foundations, according to the Foundation Center. In many ways, grants from family foundations are a form of giving by individuals. Total giving by source by five-year spans in inflation-adjusted dollars, 1971–2010 Total giving by source by five-year spans in inflation-adjusted dollars, 1971–2010 After two decades of comparatively slow growth from 1971 through 1995, giving shows a steep increase from 1996 through 2010 (adjusted for inflation). The amount given from corporations, foundations, and individuals has risen steadily since 1995. Bequests increased in amount from 1996–2005 but have increased only slowly in the past five years. All Giving USA estimates are on the conservative side, as they rely on tax returns filed by donors and information returns filed by foundations. Giving USA has used the same methods for estimating giving over time (with occasional adjustments), which allows for comparison of trends and identification of opportunities. Total giving and trends for total giving: 1970–2010 Total giving and trends for total giving: 1970–2010 Total giving in 2010 increased by $10.59 billion from the revised current-dollar estimate of $280.30 billion in 2009. This is a change of approximately 3.8 percent before adjusting for inflation. Because $100 in 2010 was worth $98.39 in 2009, the inflation-adjusted change is less at 2.1 percent. While the amounts may be higher or lower in some years, the total from bequests is largely driven by how many estates include a bequest. Total giving as a percentage of Gross Domestic Product, 1970–2010 Data are rounded. Total giving as a percentage of Gross Domestic Product, 1970–2010 For 2010, giving is an estimated 2.0 percent of GDP. Giving has remained 2.0 percent or more of GDP since 1997. Giving was at or above 2.0 percent of GDP from 1956 through 1972. It declined below 2.0 percent in 1973 and stayed below that threshold until 1997. Total charitable giving and the Standard & Poor's 500 Index (Adjusted for inflation) Total charitable giving and the Standard & Poor's 500 Index (Adjusted for inflation) Individual, foundation, and estate contributions are all influenced to some extent by donor asset levels. Most high-net-worth households hold some of their assets, but not necessarily the majority, in stocks. Foundations and estates have diverse portfolios, often governed by trustees and investment policies. Even with these variations in assets and holdings, historically there is a statistically significant correlation between changes in total giving and changes in the Standard & Poor’s Index. Note that when graphed together, giving does not rise as quickly as the Standard & Poor’s 500 Index, nor does it fall as steeply when the index declines. Individual giving as a share of disposable income, 1970–2010 Individual giving as a share of disposable income, 1970–2010 Individual giving was an estimated 1.9 percent of DPI for 2010. Disposable personal income is the amount available to households after payment of taxes. Charitable giving by individuals and households is typically made from income. Some donors also give from their assets, including stock, real estate, personal property, or other valuables. One 2008 study found that 40 percent of high-net-worth households made major gift-level contributions from assets in 2007. By using the same methods annually, Giving USA’s trend analysis allows for comparison over time. Corporate giving as a percentage of corporate pretax profits, 1970–2010 Data are rounded. Corporate giving as a percentage of corporate pretax profits, 1970–2010 Corporate giving, which includes grants from corporate foundations, is estimated to be 0.9 percent of corporate profits for 2010. Corporate giving has remained at or below 1.0 percent of corporate profits since 2004. Many corporations strive to maintain their giving at a fairly consistent level. In-kind giving is an increasingly prevalent means of corporate support. Recent trends tracked by the Committee Encouraging Corporate Philanthropy show an increased focus on strategic giving. Even though giving by corporations increased significantly in 2009 and 2010 in both current and inflation-adjusted dollars, as companies shift their philanthropic priorities, many charitable organizations have experienced changes in the amount received from corporations. Giving to religion, 1970–2010 Giving to religion, 1970–2010 Religion = $100.63 billion in 2010. Increase of 0.8 percent (-0.8 percent adjusted for inflation). 35 percent of total estimated giving. Giving to religion has historically increased over time, but at a slower rate than giving to other types of charities. Recently, giving to religion has flattened. This estimate includes contributions to houses of worship, the organizing or national offices of denominations and faith groups, ministries, and religious communities. This estimate does not include contributions to faith-based organizations offering other services, such as healthcare, education, or social services. Giving to education, 1970–2010 Giving to education, 1970–2010 Education = $41.67 billion in 2010. Increase of 5.2 percent (3.5 percent adjusted for inflation). 14 percent of total estimated giving. Giving USA reports on a calendar year. Many institutions of education operate on a fiscal year; other reports may show a different level of change because they include fall 2009 and spring 2010 in one reporting period. Giving USA’s findings include higher education giving for calendar 2010, including contributions estimated for public, private, and charter K-12 schools, after-school and tutoring programs, libraries, and programs focusing on education research and policy. Giving to foundations, 1970–2010 Data: The Foundation Center Giving to foundations, 1970–2010 Foundation gifts received estimated at $33 billion in 2010. Increase of 1.9 percent (0.2 percent adjusted for inflation). 11 percent of total giving. Giving USA’s findings include giving to private foundations, community foundations, and operating foundations. It does not include freestanding donor-advised funds, which are in public-society benefit. Giving to human services, 1970–2010 Giving to human services, 1970–2010 Human services = $26.49 billion in 2010. Increase of 0.1 percent in 2010 (-1.5 percent adjusted for inflation). 9 percent of total giving. The 2010 number may reflect the modest economic recovery underway, as many individual and corporate donors who added to or switched their giving priorities to address urgent community needs during the depth of the recession may see this issue as less pressing now. Human services organizations also received 75% of giving for Haitian earthquake relief in 2010. Human services organizations provide a wide range of services, including providing food, clothing, shelter, legal services, employment counseling, senior- or youth-focused recreational activities, and case management and coordination services. Giving to health, 1970–2010 Giving to health, 1970–2010 Health = $22.83 billion in 2010. Increase of 1.3 percent (-0.3 percent adjusted for inflation). 8 percent of total estimated giving in 2010. Giving USA reports on a calendar year. Many healthcare organizations operate on a fiscal year; some other reports show a different level of change because they include fall 2009 and spring 2010 in one reporting period. Health organizations include those providing care, such as clinics and hospitals. They also include health-related research facilities, disease specific organizations for research or patient/family support, mental health services and research, and health policy centers. Giving to public-society benefit 1970–2010 Giving to public-society benefit 1970–2010 Public-society benefit = $24.24 billion in 2010. Increase of 6.2 percent (4.5 percent adjusted for inflation). 8 percent of total estimated giving in 2010. The increase in this subsector is likely the result of contributions to donor-advised funds experiencing strong recovery. This subsector includes United Ways, Jewish federations, and freestanding donor-advised funds (community foundation donor-advised funds appear in giving to foundations). This subsector also includes civil rights, voter education and registration, public policy research, social science research and community and neighborhood economic and civic development. It also includes leadership development programs. Giving to arts, culture, and humanities 1970–2010 Giving to arts, culture, and humanities 1970–2010 Arts, culture, and humanities = $13.28 billion in 2010. Increase of 5.7 percent (4.1 percent adjusted for inflation). 5 percent of total estimated giving in 2010. The 40-year trend shows a long period of almost no growth, from 1970 through 1994, followed by a few years of steep rates of growth. Despite this year's increase, the overall trend is that the arts are now in a period of slow growth or no growth. Arts, culture, and humanities organizations engage in performance, exhibition, creation, teaching, and preservation of arts and cultural assets. They also include humanities organizations, historical societies, and public and nonprofit media organizations. Giving to international affairs, 1970–2010 Giving to international affairs, 1970–2010 International affairs = $15.77 billion in 2010. An increase of 15.3 percent (13.5 percent adjusted for inflation). 5 percent of total estimated giving in 2010. International giving began to be tracked separately in 1987. Recent growth in giving reflects developing priorities for charitable activity in developing countries. International affairs organizations also received 25% of giving for Haitian earthquake relief in 2010. International affairs refers to organizations focused on international aid, development, and relief, as well as policy and analysis of international affairs. Giving to environment/animals 1970–2010 Giving to environment/animals 1970–2010 Environment/animals = $6.66 billion in 2010. Decrease of 0.7 percent (-2.3 percent adjusted for inflation). Two percent of total estimated giving. This subsector began to be tracked separately in 1987. Because gifts of land and conservation easements made to land trusts and conservation organizations are included, this year's decline may in part be attributable to falling real estate values. Organizations focused on environmental preservation and conservation, wilderness and community open space, animal care, conservation and protection (including zoos and aquariums), and pollution abatement and control. Giving by type of recipient as a percentage of total giving Five-year spans; does not include “unallocated” Data began in 1978 for foundations and in 1987 for environment/animals and international affairs. Giving by type of recipient as a percentage of total giving Five-year spans; does not include “unallocated” Giving to foundations began to be tracked in 1978. Environment/ animals and international affairs began to be tracked in 1987. Giving to religion has been decreasing as a share of the total since the 1986–1990 period. For 2006–2010, it was 35.8 percent of the total. Religion experienced the greatest dip, down from 37.2 percent in the prior five years. The fastest growth area in the past five years has been foundations (at 11.5 percent of the 2006–2010 total, up from 9.7 percent in the prior five years). Education, public-society benefit, and international affairs are each up less than one percent over their totals for the prior five-year period. Giving by type of recipient Five-year spans, adjusted for inflation Data in Giving USA book. Giving by type of recipient Five-year spans, adjusted for inflation After adjusting for inflation, giving to every type of charity except two in the 2006–2010 time-span exceeded the amount in the prior five years. The exceptions are to giving to human services and to health, which dropped very slightly. Giving to human services fell to an estimated $140.4 billion in the five years from 2006 through 2010, after totaling $141.4 billion in the prior five-year span. Giving to health fell to an estimated $115.8 billion in the five years from 2006 through 2010, after totaling $116.6 billion in the prior five-year span. Number of volunteers in millions of people, 2003–2009 Number of volunteers in millions of people, 2003–2009 The Corporation for National and Community Service estimated that 63 million adults volunteered in 2009. This is the largest increase since 2003 and a tremendous resource for nonprofit organizations. Giving USA does not track the value of volunteer labor, but one approximation can be developed using national data about the number of hours volunteered, as well as the rate per volunteer hour developed by INDEPENDENT SECTOR. The estimate is approximately 8.1 billion hours times $20.85 per volunteer hour, for a total value to nonprofit organizations of at least $169 billion in 2009. The most recent data available are for 2009, as of mid-2010. Volunteer rate, 2003–2009 Volunteer rate, 2003–2009 The number of volunteers has increased in recent years as the population above age 18 has increased in number. The rate of people volunteering as a percentage of all adults increased slightly in 2009 (the most recent data available). Media and organization-level reports about 2010 volunteering suggest that many of the millions of people whose work hours were reduced or who lost their jobs during the recession are continuing to volunteer as they seek increased employment. The number of 501(c)(3) organizations 2001–2010 The number of 501(c)(3) organizations 2001–2010 The number of organizations continues to increase. However, not all organizations register with the IRS. Some register only at the state level; many grassroots organizations do not register at all. Tax-exempt nonprofit organizations are required to register with the IRS (Form 1023) within 90 days of the end of the first calendar year in which they have total revenue of $5,000 or more. FREE Executive Summary Download your FREE executive summary of Giving USA 2011 at www.givingusareports.org END OF PRESENTATION Pressing the “Esc” or “Page Down” key will exit the presentation and return you to the computer operating system.