The Rundown - June 24, 2022
The latest news and notes from the nonprofit and philanthropic sectors.
The Great GivingUSA Reveal Edition
This past Tuesday, the annual GivingUSA report was released by the Lilly School of Philanthropy at Indiana University. For those that follow the philanthropic world, this is important information and gives us an idea of where we are in charitable giving and where we might be going.
The bottom line is…well, mixed. In terms of real dollars charitable giving great from 2020 to 2021 by 4%; Americans donated an estimated $484.85 Billion dollars last year. For a bit of context, that is roughly the same size of the economy of Slovenia. That is a massive amount donated to our charitable causes. The mixed number comes from the fact that when inflation is put in the equation, the amount donated shrunk by 0.7%. Laura McDonald, the chair of the GivingUSA Foundation summed up the report by stating:
“The story of charitable giving in 2021 is closely tied to the events of 2020, a historic year that included a global pandemic, economic crisis and recovery, efforts to advance racial justice, and an unprecedented philanthropic response. In 2021, Americans continued giving more generously than before the pandemic. However, the growth in giving did not keep pace with inflation, causing challenges for many nonprofits. In 2021, many donors returned to their favored causes, with many of the sectors that struggled in 2020 making a recovery in 2021.”
Digging into the numbers a little deeper, here are some of the specifics when it comes to different areas and sources of giving:
Giving by Individuals - Individuals gave a collective $326.87 Billion dollars last year. It grew by 4.9% in real dollars, but with inflation this growth was flat.
Giving by Foundations - Philanthropic organizations also gave more, but not as much. The giving by these organizations grew by 3.4% to $90.88 Billion.
Giving by Bequests - Giving through wills and planned giving actually shrunk by over 7% to just over $46.01 Billion. Perhaps we are seeing more and more giving by individuals while they are alive rather than leaving legacy gifts.
Giving by Corporations - Corporate giving grew by nearly 25%, but still only accounted for $21.08 Billion. 2021 was a good year for corporate bottom lines and a stronger GDP.
All of this leads to us wondering, where are these dollars going? These were the sectors that saw the most growth in charitable giving.
Giving to Public-Society Benefit Organizations - Giving to these groups nearly jumped by 25% to $55.85 Billion. These organizations include groups like the United Way and perhaps more importantly, national Donor Advised Funds. Donor Advised Funds have grown exponentially and we are seeing billions of dollars flowing into these tools.
Giving to Arts, Culture and Humanities - Giving to the organizations increased by nearly 28% to $23.5 Billion. My own personal take is that organizations that support local quality of life initiatives are benefitting from giving; the pandemic has changed our relationships with the places we live. Furthermore, these were the sectors that were really impacted through the Covid-19 pandemic.
Giving to Foundations - Giving to these groups grew by over 9% to over $64 Billion. Giving to these groups again might be a reaction to make targeted investments in our community through community foundations. Also, these foundations make targeted investments in areas that hold great meaning to donors. For those that aren’t giving through bequests or planned giving, these folks may be giving directly to foundations right now.
We will see where giving goes in 2022. Traditionally giving goes down when the stock market slumps. Year to date, the S&P 500 is down over 20%; the Dow Jones Industrial Average is down 16%. On top of that, inflation is high and fears of a recession are real. It will be interesting to see if giving shrinks in 2022, but most signs are showing a less than rosy outlook.
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
A Quick Note of Thanks!
Thank you all for subscribing to this newsletter. The subscription numbers continue to grow and from what I am learning, this side job seems like it has “sticking power”. I am not getting inquiries and calls from literally all over the world wanting to partner and work together to create value for you, the non profit and philanthropy leader. I feel very excited about the future of this newsletter and if you have any ideas or comments, please feel free to share them with me at pinnaclestrategiesltd@gmail.com
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you! If you haven’t shared it yet…..well, here is your chance….
Ready to Learn Something New?
Spring is a wonderful time to visit Indianapolis and it opens a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Other Ways to Connect
Our coaching practice has openings starting here in 2022. If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have for your organization, please reach out to me at pinnaclestrategiesltd@gmail.com.
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