American individuals, corporations and foundation were very generous in 2008, contributing more than $307 billion to nonprofit organizations.  As in the past, more than 80% of these dollars were given by individuals. While foundations showed a slowing increase over 2007 in giving, corporate giving, which comprises only 5% of all giving, fell for the second year in a row.  

While 2008 was only the second year that giving surpassed the $300 billion mark, the Giving USA report does show the recession’s impact on philanthropy.   For the first time since 1987 and only the second time since Giving USA began publishing annual reports in 1956, total giving decreased in current dollars. 

Our fundraising forefathers have navigated similar times in history when the economy was challenged and fund raising significantly affected.  In fact, Ketchum was founded in 1919 and has help steer organizations through times as tough as the Great Depression.  As sponsors of the Giving USA report, we know that the historical perspective provided by the Giving USA report helps to show that people continue to faithfully give during tough times.

It also shows that the economic impact on giving is not always equitable to all sectors of nonprofits and all nonprofit organizations.  While education and arts non profits saw wide swings in giving and human services saw the largest decline ever reported, some groups like society benefit based non profits and faith based groups actually saw increases in giving. 

According to Guidestar and AFP many non-profits are still seeing their total dollar giving go up in this economy.  The 2008 edition of the GuideStar Nonprofit Survey: Charitable Organizations and the Economy report found volatility in the giving to charitable organizations. When asked if there was a change in contributions from 2007:

• 35 percent reported an increase in charitable revenue;

• 25 percent reported that contributions had remained about the same; and

• 35 percent of respondents reported a decrease

• 2 percent didn’t know.

The Guidestar study reaches any charity that wants to complete it (a convenience sample). At least 2,730 separate organizations participated in the 2008 poll. The percentage reporting a decrease is approximately the same as the percentage that reported a drop in giving in 2002.

The Association of Fundraising Professionals surveyed its membership. With several hundred respondents, this study found:

• 46 percent of organizations raised more funds in 2008 than in 2007;

• 14 percent raised about the same amount of money in both years; and

• 40 percent raised less in 2008.

Certainly,  Giving USA data is important to understanding general philanthropic trends as well as understanding philanthropic trend within various economic climates.  However, this data alone is not enough to explain the fundraising ups and downs of a single organization.  As the Guidestar and AFP data above, and individual cases noted in the media show, some nonprofits saw success last year and are still succeeding in this climate.  And data from the Fundraising Effective Survey , which shows that most nonprofits have been losing 5 donors for every 6 they gain, suggests that other non-economic factors have been inhibiting fundraising success for at least a couple of years leading up to the historical decrease in 2008. 

At Ketchum, we know that the decline shown by the Giving USA numbers is significant.  However, $307 billion is a lot of money.  People are still giving.  Keep asking and showing the impact of philanthropy on your mission.