Growth in philanthropy has outpaced the increase in U.S. GDP over the last five years, according to a report released by the Giving USA Foundation.
“Inflation-adjusted total giving grew at an annualized average rate of 3.6 percent during that time frame; meanwhile, GDP growth grew at an average rate of 2 percent,” said Jeffrey D. Byrne, chair of The Giving Institute.
The annual report is published by the Giving USA Foundation, a public-service initiative of The Giving Institute, which is an educational and research organization based in Chicago. It is researched and written by the Indiana University Lilly Family School of Philanthropy.
Charitable giving reached a record high in 2015 for the second year in a row, according to the report. Donations from individuals, estates, foundations and corporations totalled $373.25 billion, a 4.1 percent increase over 2014, which saw donations of $359.04, a 7.8 percent increase over 2013.
“These findings embody more than numbers—they also are a symbol of the American spirit,” said Giving USA Foundation Chair W. Keith Curtis. “It’s heartening that people really do want to make a difference, and they’re supporting the causes that matter to them."
Although multimillion-dollar donations grab the headlines, charitable gifts from individuals once again led the way in terms of total dollar amount at $264.58 billion, following the historical pattern seen over more than six decades, the report said.
“Each year, gifts of $100 million or more play a significant role for some individual donors and many different types of charities, and they do affect the numbers,” said Patrick M. Rooney, associate dean for academic affairs and research at the School of Philanthropy. “However, Americans’ collective generosity would still be enormous even without those jaw-dropping gifts.
Other sources of donations are estates, foundations and corporations, all of which went up in 2015, according to the report.
“Sustained growth in total giving for 2014 and 2015 could be due, in part, to at least two factors: The country’s overall economic environment continuing its path to recovery after recessionary times and household finances seeming to stabilize,” the report said.
The segment seeing the largest increase in donations received was international affairs, which increased 17.5 percent in 2015. The large increase may be attributable to growth in the number of active international charitable organizations; use of more strategic fundraising methods; and increased focus on international issues among foundations, according to the report. Giving to this category also may have taken longer to recover from the recession.