Recently the Chronicle of Philanthropy published an opinion article (a larger, more prominent, “letter to the editor”) by the title of “Americans Generous? Not Really”. This article by a senior fellow at Georgetown University took issue with the often repeated comment (because it is true) that the Americans are the most generous people in the world.I wouldn’t have minded so much if the criticism was along the lines of something accurate or perhaps Biblical. Perhaps, 1 Corithians 16:2 - Let each one of you give according to how the Lord has prospered you." Given that standard, Americans, one of the most blessed people in the history of the world, would need to be even more generous than they presently are.
Unfortunately, his criticism was that much of the largest donations from the 50 most generous donors went to colleges and universities. For some reason, colleges and universities that have healthy endowment funds have been under attack. In addition, it seems like tax-incentives were given for the reason for the generosity (sure…an easy way to get 30 cents back for every dollar given!) Some in Washington are trying to figure out how to shake loose some of that money because of course the people in Washington think they know how to spend money better than anyone.
I thought I would take this opportunity to take issue with some of the giving myths that are heard often, particularly at conferences and seminars attended by those involved in the nonprofit industry. The information I’m quoting is taken from “Giving USA 2006-released in 2007”
Myth 1: Giving in the US has been in decline
Fact 1: Giving in the US continues to increase
Giving in the last year was up 4.2% and in current dollars, before inflation adjustments, estimated giving has increased by $279 billion since 1966. Much of that growth has been in the last ten years.
Myth 2: Adjusted for inflation, giving in the US has been in decline
Fact 2: Adjusted for inflation, giving in the US continues to increase
Myth 3: Corporations and Foundations make up most of the giving
Fact 3: Individuals give the most
Charitable giving by individuals and households reached an estimated $222.9 billion in 206, approximately 76% of the total amount of giving
Myth 4: Giving to Religious Organizations in the US has been in decline
Fact 4: Giving to Religious Organizations in the US continues to increase
Giving to religious organizations was estimated at $96.82 Billion, an increase of 4.5% over the previous year. Giving to religious organizations represented 32.8% of all giving and has increased an average of 4.7% each year for the past ten years.
Myth 5: More and More Charities are chasing Fewer and Fewer Dollars
Fact 5: Giving, even adjusted for inflation has increased much more than the number of Charities
Myth 6: Giving by percentage is a smaller piece of the economy
Fact 6: Giving as a percentage of the total economy is above the 20 year trend
Total charitable giving as a percentage of the GNP was 2.2 percent in 2006. Other than 2000, when the giving percentage reached 2.3 percent after several years of rapid stock market growth, the average growth has been typically around 2.0%
Myth 7: Giving by percentage of personal income is declining
Fact 7: Giving as a percentage of personal income is increasing
The 2006 individual giving as a percentage of personal income was 2.0 percent and above the 40-year average of 1.8%. While down slightly from 2.1 percent in 2005 it is up to the more recent highs experienced in the late 1960’s.
Finally, just some interesting other changes since 1965 (the base year for most of the above analytical study). Adjusted for inflation, the DJIA is up about 132%, a new house price is up about 118%, a newspaper is actually up only about 62% and a new car (take an Impala…please) is up 51%. Meanwhile giving in the United States is up 203% fully adjusted for inflation.
Americans generous? Yes, really!
