Decline in Charitable Giving is Less Than Expected

The amount of giving to charity in America didn't drop as much as the previously feared plummet in donations during the onset of the recession. As reported by Giving USA, a publication of Giving USA Foundation that is researched by the Center of Philanthropy at Indiana University, individuals were the leaders in giving, making up three quarters of all charitable giving and giving to religion landed above all the rest, making up 33 percent of the overall figure in 2009.

In 2009, charitable organizations brought in $303.75 billion, a more than 3 percent drop from 2008 in which charitable organizations brought in $315.08. However, in Giving USA, estimates indicate that in 2009 giving was 2.1 percent of Gross Domestic Product and this is the thirteenth consecutive year that giving has been greater than 2 percent. Nancy Raybin, chair of the Giving Institute said, "Speculation was swirling for many months that charitable giving had to be down by a great percentage in 2009. Anecdotally, our experts across the country heard that strong giving in December made all the difference, and the totals for the year bear that assumption out."

This proves that even in times of economic distress, Americans continue to be generous to good causes. One of the factors that made the biggest differences in the 2008 and 2009 giving numbers was the amount of bequests in charity, in 2008 numbers increased because of multibillion-dollar estates that were settled in New York and Arkansas. As all in the non-profit sector breathe a sigh of relief, they urge for continued support. Patrick Rooney, director of The Center on Philanthropy in Indianapolis, "In terms of shaping our society, it is significant that more adults give to charity than give to political candidates, than vote, or than are required to pay federal taxes on their income."