USA CHARITABLE GIVING TOPS THE $400 BILLION MARK FOR THE FIRST TIME

By June 21, 2018 Blog

Powered by a strong economy, charitable giving by American individuals, bequests, foundations and corporations to U.S. charities surged to an estimated $410.02 billion in 2017, according to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017.

Giving exceeded $400 billion in a single year for the first time, increasing 5.2 percent (3.0 percent adjusted for inflation) over the revised total of $389.64 contributed in 2016.

“Americans’ record-breaking charitable giving in 2017 demonstrates that even in divisive times our commitment to philanthropy is solid. As people have more resources available, they are choosing to use them to make a difference, pushing giving over $400 billion,” said Aggie Sweeney, CFRE, chair of Giving USA Foundation. “Contributions went up nearly across the board, signaling that Americans seem to be giving according to their beliefs and interests, which are diverse and wide-ranging.”

Giving grew from all major sources in 2017, and every category of recipient except one saw an increase in giving (see below for details). Much of the increase was driven by economic conditions.  However, while policy developments may have played some role in charitable giving in 2017, most of the effects of the tax policy changes adopted in late December 2017 likely will affect giving in 2018 and beyond.

“The increase in giving in 2017 was generated in part by increases in the stock market, as evidenced by the nearly 20 percent growth in the S&P 500. Investment returns funded multiple very large gifts, most of which were given by individuals to their foundations, including two gifts of $1 billion or more,” said Amir Pasic, Ph.D., the Eugene R. Tempel dean of the Lilly Family School of Philanthropy. “This tells us that some of our most fortunate citizens are using their wealth to make some significant contributions to the common good.”

In addition to the S&P 500, other economic factors, such as personal income and personal consumption, are associated with households’ long-term financial stability and have historically been correlated with giving by individuals. These factors also experienced strong growth in 2017.

The Numbers for 2017 Charitable Giving to Recipients:

  • Giving to religion increased 2.9 percent (0.7 percent adjusted for inflation), receiving an estimated $127.37 billion in contributions.
  • Giving to education is estimated to have increased 6.2 percent (4.0 percent adjusted for inflation) to $58.90 billion.
  • Giving to human services increased by an estimated 5.1 percent (2.9 percent adjusted for inflation) totaling $50.06 billion.
  • Giving to foundations is estimated to have increased by 15.5 percent (13.1 percent adjusted for inflation) to $45.89 billion, based on data provided by the Foundation Center.
  • Giving to health organizations is estimated to have increased by 7.3 percent (5.1 percent adjusted for inflation) to $38.27 billion.
  • Giving to public-society benefit organizations increased an estimated 7.8 percent (5.5 percent adjusted for inflation) to $29.59 billion.
  • Giving to arts, culture, and humanities is estimated to have increased 8.7 percent (6.5 percent) to $19.51 billion.
  • Giving to international affairs is estimated to have declined 4.4 percent (6.4 percent adjusted for inflation) to $22.97 billion.
  • Giving to environment and animal organizations is estimated to have increased 7.2 percent (5.0 percent adjusted for inflation) to $11.83 billion.

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