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Giving hits record high.

By Scala, Richard P.
Publication: Fund Raising Management
Date: Sunday, July 1 1990

A surge in individual giving fueled a 10-43 Percent increase in charitable donations in 1989, lifting the total to $114.7 billion, according to the annual Giving USA estimates published by the American Association of Fund Raising Counsel (AAFRC) Trust for philanthropy. Contributions by Americans

to charitable and other causes last year represent an inflation-adjusted increase of 5.5 percent over 1988's $103.87 billion revised estimate. Individual gifts grew 11.7 percent, or two-and-a-half times the 4.67 percent inflation rate.

Individuals contributed an estimated $96.43 billion in 1989, accounting for more than 84 percent of the total. Adjusting for inflation, the value of individual gifts grew 6.7 percent. Since the AAFRC began monitoring national philanthropic trends in 1955, individual gifts have outpaced inflation almost every year.

A jump in personal income of almost 9 percent along with the 21 percent increase in stock prices are two factors accounting for the significant growth in individual giving. Growing Public awareness of such causes as AIDS, homelessness and environmental crises, intense fund raising by non-profits, and billion-dollar university capital campaigns also are Credited with spurring gifts.

Foundation grants, exclusive of those affiliated with businesses, came to an estimated $6.7 billion, increasing 9.9 percent over 1988's revised $6.15 billion estimate. In inflation-adjusted dollars, grants by foundations grew 4 percent.

For the fourth consecutive year, giving by corporations, including foundations established by them, failed to meet the rising cost of services provided by non-profit organizations. Gifts were estimated at $5 billion in 1989, increasing almost 4.2 percent over the 1988 revised estimate of $4.8 billion. Considering inflation, corporate giving declined by nearly .5 percent.

The estimated amount of bequests was unchanged from 1988 at $6.57 billion. Depending heavily on their donor's life span, bequests are the most unpredictable source of contributions. Bequests declined by almost 4.5 percent in inflation-adjusted dollars.

Religion, the perennial leader in contributions, received an estimated $54,32 billion, more than 47 percent of the total. The 1989 figure represents an increase of almost 13 percent, or 7.4 percent adjusted for inflation. Giving to education rose 4.3 percent in 1989 to $10,69 billion. Adjusting for inflation, education gifts fell slightly. Health contributions were put at $10.04 billion, rising 4.8 percent over 1989, and 0.1 percent adjusting for inflation. Human services giving was estimated at $11.39 billion, rising 8.6 percent from 1988, and 3.7 percent when considering inflation.

Arts, Culture & Humanities giving was estimated at $7.49 billion, a rise of 10.3 percent, or 5.4 percent adjusted for inflation. The Public/Society Benefit category, including non-profits concerned with the environment, traffic safety, animal rights and urban and rural development, grew 12.8 percent to an estimated $3.62 billion. Adjusting for inflation, the increase amounted to almost 7.7 percent. All other uses, including overseas and non-monitored organizations, were estimated at $17.15 billion, a rise of 10.8 percent. In inflation-adjusted dollars, growth rose 5.9 percent. -RS

  GIVING USA
________________________________________________________________
                                              1988
                                1989       (Revised)    % Change
                             ___________________________________
Total ($ Billions)            $114.70       $103.89      10.43%
________________________________________________________________
Sources of Contributions
  Individuals                 $ 96.43       $ 85.35      11.67%
  Bequests                       6.57          6.57       0.00
  Foundations                    6.70          6.15       8.93
  Corporations                   5.00          5.00       4.17
Uses of Contributions
  Religion                     $54.32       $ 48.09      12.95%
  Education                     10.69         10.23       4.39
  Health                        10.04          9.58       4.80
  Human Services                11.39         10.49       8.58
  Arts, Culture, Humanities      7.49          6.79      10.36
  Public/Society Benefit         3.62          3.21      12.77
  All Other Uses                17.15         15.48      10.80

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