“Donors have strong commitments to charity. This year, we’ve seen giving buoyed in part by gifts of cash, real estate, and tangible property other than corporate securities,” said Leo P. Arnoult, CFRE, chair of the AAFRC Trust. “Given the economic difficulties and other uncertainties of 2002, growth in giving is proof of our nation’s philanthropic resilience.”
Giving USA has revised its estimates for individual giving in 2000 and for 2001, which affect the estimate for 2002. Giving USA revises its estimates annually using new data from the Internal Revenue Service about itemized contributions. The revised Giving USA estimate for 2000 of $228.25 billion uses new IRS data for itemized charitable deductions showing $7 billion more than the IRS’s preliminary figures.
The estimated growth of 1 percent in giving is mirrored by reported charitable revenue at nonprofit organizations in 2002. A Giving USA survey of nonprofits about charitable revenue in 2002 compared to 2001 found that 49 percent of organizations reported an increase, 46 percent reported a decrease, and 5 percent reported no change. Based on survey results charitable revenue grew 0.4 percent (-1.1 percent adjusted for inflation), before contributions for September 11 relief and before gifts to churches, which are not surveyed, are included.
“With more than 1.4 million charities, including religious congregations, in the United States, and donations from about 70 percent of the households in any given year, findings from Giving USA are a major contribution to our understanding of the nonprofit sector and its role in our society,” said John J. Glier, chair of the American Association of Fundraising Counsel. “These findings indicate that Americans continued to give in 2002, demonstrating support for a wide range of organizations and their future work.”
The estimate for charitable giving in 2002 is 2.3 percent of gross domestic product. This is only somewhat lower than the 2.4 percent of GDP found for 2001, comparable to 2.3 percent in 2000, and somewhat higher than the 2.2 percent of GDP reported in contributions for 1999. Giving above 2.0 percent of GDP was standard in the 1960s, but dropped below that level from 1971 through 1999. The historical record of Giving USA goes back to 1955, when the publication was created by the American Association of Fundraising Counsel (AAFRC).
“We have a very good understanding, thanks to Giving USA, of past trends in giving and the links between giving and other factors,” said Eugene R. Tempel, executive director of the Center on Philanthropy at Indiana University. “These data help nonprofit organizations, fundraisers, and donors navigate through uncharted territory as we confront new giving environments and unexpected circumstances.”
Giving by individuals in 2002 is estimated to have increased 0.7 percent, to $183.73 billion from a revised estimate for 2001 of $182.47 billion. Adjusted for inflation, this is a decrease of 0.9 percent. Giving by individuals represents 76.3 percent of all giving estimated for 2002.
Giving through bequests in 2002 is estimated to have increased 2 percent to $18.1 billion from a revised estimate of $17.74 billion. Adjusted for inflation, this is growth of 0.4 percent. Gifts through bequests represent 7.5 percent of the 2002 total estimated giving.
Giving by foundations in 2002 is reported by the Foundation Center to show an estimated decrease of 1.2 percent, at $26.9 billion for grantmaking by independent, community, and operating foundations. Adjusted for inflation, this is a decline of 2.7 percent. Grantmaking by foundations represents 11.2 percent of all estimated giving in 2002.
Giving by corporations in 2002 is estimated to have grown by 10.5 percent to $12.19 billion, from a revised estimate of $11.03 billion for 2001. Adjusted for inflation, this is growth of 8.8 percent. The high rate of growth in corporate giving is attributed to continued fulfillment of pledges made in 2001; growth of in-kind giving by corporations; the Foundation Center’s finding of an increase in corporate foundation grantmaking; and perhaps better reporting from corporations of deductible contributions in recent years. Giving by corporations is 5.1 percent of all estimated giving in 2002.
Methodology
Giving USA’s annual estimates are based on original surveys of
organizations and econometric studies using tax data, government
estimates for economic indicators, and information from other research
institutions. Sources of data used in the estimates include the Internal
Revenue Service, the U.S. Department of the Treasury, the Bureau of
Economic Analysis, the Foundation Center, INDEPENDENT SECTOR, the
Council for Aid to Education, the National Center for Charitable
Statistics at the Urban Institute, and the National Council of Churches
of Christ.
Giving USA revises its estimates based on new IRS data about claimed deductions for charitable contributions and in response to other findings about giving or the economy released by government agencies or researchers in the field. The estimates for giving reflect adjustments made to take into account new information about charitable deductions claimed on individual, estate, and corporate tax returns. Estimates for 2000, 2001 and 2002 also include a revised estimate for giving by tax payers who do not itemize deductions.
Giving USA estimates the percentage of change in giving to subsectors (health, arts, education, religion, etc.). Except for religion, these estimates are developed by the Center on Philanthropy at Indiana University based on a survey conducted by the Center for Survey Research at Indiana University. The rates of change for 2002 are based on responses from 1,975 organizations.
A Note about Inflation Adjustments
Inflation-adjusted rates of change are based on estimates that are
calculated using a Bureau of Labor Statistics converter, which rounds to
two decimal points. When comparing the inflation-adjusted rates of
change to rates of change in current dollars, the difference between the
two is not a constant 1.56 percentage points (the rate of inflation used
in the BLS converter for 2002). This is a by-product of the rounding and
is not due to the use of a different measure of inflation or an error in
calculation.
NOTE TO EDITORS
Data for 1962 through 2002 are available on request. The data show
sources of contributions by year in current and inflation-adjusted
dollars and allocation of gifts by type of recipient, also in current
and inflation-adjusted dollars. Data are also available showing total
giving as a percentage of Gross Domestic Product; individual giving as a
percentage of personal income; and corporate giving as a percentage of
corporate pre-tax profits.
The preferred citation for Giving USA is: Giving USA, a publication of the AAFRC Trust for Philanthropy, researched and written by the Center on Philanthropy at Indiana University.
For scholarly citations, the preferred form is the American
Psychological Association style as follows: AAFRC Trust for
Philanthropy. (2003). Giving USA 2003. Indianapolis, IN: Author.
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The complete Giving USA 2003 report, with data covering giving in 2002, will be available in July 2003. The AAFRC Trust for Philanthropy also publishes a quarterly newsletter, Giving USA Update. Both may be ordered by calling 1-888-5-GIVING (1-888-544-8464) or by downloading an order form from http:www.givingusa.org. Giving USA 2003 (with data for 2002) is $65. Giving USA Presentation on CD is $135. Giving USA book and subscription to the Update is $125. Giving USA book, subscription to the Update, and Presentation on CD is $195. Single issues of Giving USA Update are $35. Costs do not include shipping and handling. All orders must be prepaid.
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