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Charitable giving increases for some sectors, not for others

The Giving USA report said wealthy donors are lavishing funds on their favored charities, including universities, hospitals and arts institutions, while giving is flat to social service and church groups more dependent on the financially squeezed middle-class donors.
By DAVID CRARY, Associated Press Published: June 18, 2014
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— Wealthy donors are lavishing money on their favored charities, including universities, hospitals and arts institutions, while giving is flat to social service and church groups more dependent on the financially squeezed middle-class donors, according to the latest comprehensive report on how Americans give away their money.

The Giving USA report, being released Tuesday, said Americans gave an estimated $335.17 billion to charity in 2013, up 3 percent from 2012 after adjustment for inflation.

Reflecting the nation’s widening wealth gap, some sectors fared far better than others. Adjusted for inflation, giving was up 7.4 percent for education, 6.3 percent for the arts and humanities, and 4.5 percent for health organizations, while giving to religious groups declined by 1.6 percent and giving to social service groups rose by only 0.7 percent.

Experts with the Giving USA Foundation and its research partner, the Indiana University Lilly Family School of Philanthropy, said it was the fourth straight year of increased overall giving, and predicted that within two more years the total could match the pre-recession peak of $347.5 billion.

During and immediately after the recession, some wealthy donors shifted their giving to social service groups working to combat hunger and homelessness, according to Patrick Rooney, associate dean of the school of philanthropy. Now, many of those donors — including some making multimillion-dollar gifts — are refocusing their attention on higher education, the arts and other sectors long patronized by the affluent, he said.

The trend is readily apparent in listings of recent major charitable gifts compiled by the Chronicle of Philanthropy, which provides news coverage of the nonprofit world.

Hospital, university donors

Among the 100 largest recent gifts, which range from $7.5 million to $275 million, the recipients overwhelmingly are universities and hospitals, along with a few arts institutions. Only four of the gifts are to social service organizations and one to a religious group.

Almost all the U.S. income gains from 2009 to 2012 flowed to the top 1 percent of earners, according to tax data analyzed by economist Emmanuel Saez at the University of California, Berkeley. By contrast, median household income was $51,017 in 2012, $4,600 below its peak in 2007, according to the Census Bureau.

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Poor people often more generous

According to a 2012 Bank of America study, the wealthiest 3 percent of American households accounted for about 35 percent of all giving by individuals in 2011.

Yet the National Center for Charitable Statistics, citing IRS data for 2011, said Americans with incomes under $100,000 gave away a higher percentage of their income — about 3.6 percent — than those with incomes between $100,000 and $1 million, for whom the figure was about 2.5 percent. Other studies have found that residents of relatively poor states in the South — including Alabama and Mississippi — are among the most generous in the nation in terms of the percentage of their discretionary income that they gave to charity.

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