In tough times, charitable giving sets record

Despite a rocky economy, charitable giving in the United States reached a record $306.4 billion in 2007, the Giving USA Foundation reported today in its annual study. According to the Glenville, Ill.-based research organization, giving rose 3.9% last year. The annual study involved a survey of 366 charities. Data were researched and written by The Center on Philanthropy at Indiana University in Indianapolis. Charitable giving was 2.2% of gross domestic product for 2007. Individual giving reached an estimated $229 billion, or 74.8% of the total estimated giving in 2007, reflecting an increase of 2.7% (a drop of 0.1% when adjusted for inflation). Corporate giving was projected to have increased 1.9% to $15.69 billion, representing a decline of 0.9% when adjusted for inflation. The study also found that grants made by foundation rose 10.3% in 2007, or 7.3% when adjusted for inflation. Charitable bequests increased 6.9%, or 4% adjusted for inflation. The total estimated giving reflects 2.3% of the average individual’s disposable income. The Giving USA Foundation also noted that in past recessions, giving typically decreased slightly. In the last five recessions since 1973, giving fell an average of 1.3% adjusted for inflation. There are approximately 1.7 million charitable organizations in the United States.