Foreword

We estimate that American individuals, corporations, and foundations donated $307.65 billion to charitable causes in 2008. This is a drop of 2 percent in current dollars (- 5. 7 percent adjusted for inflation), compared to 2007. That is the biggest drop since Giving USA began recording the data in the 1950s.

Despite the decline, charitable contri-
butions were an estimated 2. 2 percent
of Gross Domestic Product. Giving
was 2. 3 percent of GDP in 2007, when
donations soared to an estimated
$314.07 (current dollars) billion,
as revised in this edition.

This isn’t the first time that Americans faced a challenging economic year and saw giving decline. The recession that began in December 2007 included all of 2008. This compares to the recession that began in November 1973, which subsequently included all of 1974. There are other similarities between 1974 and 2008. To help us understand charitable giving, the factors to compare are the indicators most closely associated with giving: changes in the stock market, personal income, corpo-

 

Changes in

Dow Jones Industrial Average Personal income

Corporate profits Gross Domestic Product

Level of Unemployment

Estimated change in giving

rate profits, and gross domestic product.

These are shown in the table below.

The similarity in the economic environments in 1974 and 2008 helps us to understand the similarities in the inflation-adjusted change in charitable giving in those two years. Knowing that changes in the economy and changes in giving are closely linked, we can hope for improvements in 2009 and beyond.

What is a charitable organization to do so that it can survive and even thrive in uncertain times? Here are the most important steps you can take:

Tell your story honestly and positively. Let your donors and prospective donors know the power of their gifts and what they can accomplish. Avoid a desperate recitation of all the terrible things that will happen if they don’t give.

Stay in touch with your donors. Investigate inexpensive ways to communicate. Show and tell that your organization knows that belts are tightening everywhere and that you are doing your part. Step up public awareness campaigns using

 

1973–1974

- 33 percent -0.2 percent - 16 percent -0.5 percent

7. 2 percent

- 5. 4 percent

2007–2008

- 37 percent -0.8 percent - 18 percent 1. 1 percent

7. 2 percent

- 5. 7 percent