Charitable giving declines for first time in 22 years, survey shows

Charitable giving last year experienced its first decline since 1987, the Giving USA Foundation reported today.

Donations to charities totaled an estimated $307.6 billion in 2008, down from $314.1 billion in 2007, representing about a 2% drop in current dollars or 5.7% when adjusted for inflation, the Glenview, Ill.-based research organization said.

The annual report was based on models using tax and other data researched and written by The Center on Philanthropy at Indiana University of Indianapolis and published by the foundation.

“We definitely did see belt-tightening,” Del Martin, chairman of the foundation, said in a statement.

“This drop in giving meant that non-profits have had to do more with less over the past year, but it could have been a lot worse.”

As a percentage of gross domestic product, charitable giving remained nearly the same as 2007.

For 2008, giving was 2.2% of GDP, down from 2.3% in 2007.

Individual gifts continue to make up the largest portion of overall donations, but were smaller. Individual giving made up 75% of the total in 2008, or $229.3 billion, down 2.7% from 2007.

Foundation grants accounted for $41.2 billion, or 13%, of total giving, reflecting a 3% increase in current dollars, but a drop of 0.8% when adjusted for inflation.

Charitable bequests, which made up 7% of total giving, decreased 2.8% last year, to $22.7 billion.

Corporate giving, which represented about 5% of all giving, is projected to have decreased 4.5%, to $14.5 billion.