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Philanthropy Outlook Predicts Charitable Giving Growth


21 January 2016 at 8:59 am
Staff Reporter
A new report into the changing face of philanthropy and giving trends in the United States predicts that 2016 and 2017 will deliver positive outcomes for Not for Profits, with growth in foundation giving the largest so far.

Staff Reporter | 21 January 2016 at 8:59 am


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Philanthropy Outlook Predicts Charitable Giving Growth
21 January 2016 at 8:59 am

A new report into the changing face of philanthropy and giving trends in the United States  predicts that 2016 and 2017 will deliver positive outcomes for Not for Profits, with growth in foundation giving the largest so far.

Charitable giving in the US is expected to grow by 4.1 per cent in 2016 and by an additional 4.3 per cent in 2017, according to The Philanthropy Outlook 2016 & 2017, a new report by the Indiana University Lilly Family School of Philanthropy.

The Philanthropy Outlook 2016 & 2017 report also predicted a 6 per cent rise in giving to education.

“In light of the recent volatility of the US economic environment, this is a positive sign for philanthropy,” Tempel Dean of the school, Dr Amir Pasic, said.

“The prospects are good for solid growth in overall giving to Not for Profits both this year and next.”

The report projected that the changes in total giving for each of those years would exceed the five year, 10 year and 25 year annualised average rates of growth in total giving, and would be just slightly below the 40 year average growth rate of 4.4 per cent.

The outlook provided data for predicted year-to-year growth rates in US philanthropy for 2016 and 2017, including overall giving, giving by individuals and households, foundations, estates, corporations, and giving to education.

It also included context and explanation for the economic factors and conditions that will significantly influence the predicted changes in giving.

Giving by all source types is expected to rise in 2016 and 2017, the report projected. In each of the two years, growth in giving by foundations will be the largest, followed by growth in giving by estates and corporations.

Individuals and households will give more in 2016 and 2017, as compared with prior one year periods, but growth in giving by this source will be more modest than the growth from the other sources, reflecting the unevenness of economic trends that shape household giving. Individuals and households represent the vast majority of charitable giving in the US.

“The Philanthropy Outlook 2016 & 2017 has much good news for the Not for Profit sector, and especially for education. The involvement of a new generation of philanthropists is now bearing fruit, and institutions, particularly educational institutions that can inspire and engage donors in their future, have unique opportunities,” chair of the board of research partners at Marts & Lundy, Dr John Cash, said.

“The substantial projected increase in foundation giving, driven by new wealth in family-directed foundations, indicates that the importance of individual donors, particularly at higher giving levels, continues to increase. As the disparity between the very wealthy and the rest of our society grows, the new report demonstrates that Not for Profits should focus their attention on all levels of giving and should pay special attention to the potential for securing leadership commitments from top-level donors.”

Giving to education is expected to grow by 6.3 per cent this year and by an additional 6.1 per cent next year, according to the report. This growth rate is slightly higher than the 40 year annualised average rate of growth for giving to education, approximately equal with the 25 year average, and higher than the 10 year average.

Giving to education includes support for higher education, private K-12 schools, public school foundations, libraries and many other types of educational organisations. Historically, giving to education at all levels has represented about one-sixth of all US giving.

According to the report, economic factors that are expected to have the most significant, positive impact on US charitable giving in 2016 and 2017 included projected growth in the S&P 500 Index, personal income, and the net worth of households and Not for Profits, among other factors.

However, the report stressed that certain conditions, such as changes in tax policy or significant changes in the world or US economy could affect the predictions for giving.



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