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Giving to education

It is estimated that gifts to the educational sector totaled $40.94 billion in 2008.

This estimate reflects a drop of 5. 5 percent (­ 9 percent adjusted for inflation) since 2007.

Giving to the education sector is 13 percent of total estimated giving.

Education organizations include nonprofit or state­funded schools from preschool through grade 12; nonprofit or state­funded vocational or technical schools, colleges and universities; nonprofit and public libraries; tutoring programs; adult continuing education; and student services and organizations.

 

Giving USA findings for giving to education organizations, 2008 The estimate for the change in giving to organizations in the education subsector is based on the historical relationship between giving to educa­ tion charities and other broader economic trends. Specifically, the estimate looks at changes in personal income; wealth, as measured by the Standard & Poor’s 500 stock index; and giving in the recent past.

The Council for Aid to Education (CAE) reported growth in the 2007– 2008 fiscal year of 6. 2 percent in higher education giving ( 2. 3 percent adjusted for inflation). Nearly one­half of that growth was attributed to just 20 very large institutions that each raised a total of $285 million or more. If those institutions were excluded from the analysis, CAE found a decline of 4. 2 percent in giving to higher education from the 2006–2007 academic year to the 2007–2008 academic year.

The decline in giving to education institutions estimated by Giving USA reflects the economic changes in the

last half of 2008, including, in particular, stock market changes. In its March 2009 release, the Council for Aid to Education noted that giving to higher education closely follows changes in the stock market.

Trends in giving to education Using Giving USA data, two different ways of measuring trends in giving to education are presented. The first looks at giving to education during recession years. The second shows the trend in giving to education over time, measured per household (including all education donations divided by all households).

In prior recession years from 1967 to 2006, giving to education organiza­ tions averaged an inflation­adjusted drop of 1. 1 percent from the prior year. The range was from a decrease of nearly 14 percent (1975) to growth of 7 percent (2001). Giving to this subsector increased (adjusted for inflation) in five of eleven recession years from 1967 to 2006.1

Using a standardized measure of giving to education allows us to compare contributions to this subsector over