02/02/2004
A survey released late last year by the Chronicle of Philanthropy, a trade newspaper, revealed a decline in charitable giving—the first downturn in the survey’s 12-year history. Donations in 2002, which included much of the 9/11-related giving, were down 0.4 percent—1.2 percent when adjusted for inflation—following an average gain of 12 percent in each of the previous five years. Total donations to the 400 organizations in the survey dropped from $47.5 billion in 2001 to $46.9 billion.
The Chronicle says that charities have responded by considering unconventional means to bolster donations. The Boys & Girls Clubs of America, for example, is taking more of a proactive approach toward individuals rather than focusing on corporations. It has set up a department to help local clubs learn to reach out to individual donors. Other organizations are refocusing efforts on planned gifts and major gifts.
The charity receiving the most support in 2002, rising from seventh-place in 2001, was the American Red Cross, which received $1.1 billion in donations following the 9/11 terrorist attacks. The Red Cross fiscal year runs July through June, so the 9/11 donations were posted in its 2002 accounts. The influx brought the total donated to the organization to $1.74 billion. The Salvation Army received the second-most donations. It was the first time in the survey’s history that the Salvation Army did not top the list.
While giving fell as a whole, some health organizations did register increases. The American Heart Association received $437.5 million, an increase of 8.1 percent over 2001. The Alzheimer’s Disease and Related Disorders Association showed a 14.5 percent jump, to $151.7 million, and the American Diabetes Association received $144.5 million, a 16.5 percent increase over 2001. The Diabetes Association saw its donations increase a further 4.7 percent in its 2003 fiscal year, which ended June 30.
Contributions to the six commercial donor-advised funds in the 2002 survey plummeted 21.5 percent after being adjusted for inflation, however the outlook for the funds was much brighter as 2003 came to an end, according to the Chronicle’s survey. The dollar amount of donations to the Schwab Fund for Charitable Giving, for instance, jumped 67 percent from July through October 2003, compared with the same period in 2002.
The top 10 charities in the 2002 Chronicle of Philanthropy’s Philanthropy 400 Survey were:
1. American Red Cross
2. Salvation Army
3. Gifts In Kind International
4. American Cancer Society
5. Fidelity Investments Charitable Gift Fund
6. Lutheran Services in America
7. YMCA of the USA
8. Nature Conservancy
9. University of Southern California
10. Feed the Children