Getting while the giving's good.
Position | YOUR LIFE - Charity |
Total giving to nonprofits rose 6.7% in 2012, an increase of $23,320,000,000 over 2011, according to a report released by The Atlas of Giving, Dallas, Texas. Giving to environmental causes grew by 11%, more than any other portion of the U.S. charitable economy. "Overall, 2012 was a very solid year for giving," notes CEO Rob Mitchell. "Robust stock market performance, an improving economy, and a few very large individual contributions were significant factors."
Gifts to the education sector increased by 8.8%, as did disaster-related giving, the latter fueled in large part by donations in the aftermath of Superstorm Sandy, which wreaked havoc on portions of the U.S. East Coast in late October. Religion, meanwhile, long the dominant charitable sector, saw continued erosion of its share of the national giving pie. As recently as 2002, religious giving accounted for more than 50% of all charitable donations. Giving to religion accounted for 35% of the 2012 total.
Overall giving was buoyed by economic factors beyond the financial markets. Home sales hit a five-year peak in 2012, and home prices appear to be on the rise as the rate of foreclosures fell. Real gross domestic product also experienced accelerated growth.
Still, Mitchell cites continued high unemployment as a persistent detriment to giving for many Americans, a dynamic which does not impact all charities equally. 'The manner in which a given nonprofit raises money has everything to do with what effect unemployment has on gift receipts. Organizations that rely on large numbers of relatively small gifts from individuals are hit the hardest when unemployment is high."
Last year saw the announcement of several megagifts by individuals. Mitchell believes that a concern over possible elimination or diminishment of...
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