Regarding Philanthropy, America Just Keeps on Giving

Jun 25, 06:11 PM

Current Headlines: By Charles Storch, Chicago Tribune

Jun. 25--American philanthropy is an ATM with no apparent withdrawal limit. Even after an outpouring of aid in 2005 to natural disaster victims, U.S. contributions to all charitable causes eked out a new high in 2006, of $295.02 billion, according to estimates by Giving USA.

Giving increased for the third straight year on an inflation-adjusted, or "real," basis, but at the slowest pace in that stretch. Donations in 2006 rose by 1 percent from the level in 2005, a year in which U.S. individuals, foundations and corporations provided nearly $7.4 billion in relief funds for victims of hurricanes, earthquakes and a tsunami.

Excluding disaster aid, giving would have increased by a real 3.2 percent in 2006, said Giving USA, the yearbook on philanthropy published by the Giving USA Foundation in Glenview.

Without adjusting for inflation, giving has increased every year since 1987.

"Given traditional patterns, if the economy remains good, if the stock market remains strong, all indications are that giving will increase again in 2007," said Richard Jolly, Giving USA Foundation's chairman and a vice president of the New Jersey-based Marts & Lundy consulting firm for non-profits.

Giving by individuals rose by a real 1.2 percent to an estimated $222.89 billion, or 75.6 percent of all giving. Peter Fissinger, president of the Chicago-based Campbell & Co. consultancy, noted that about $4 billion of that sum was from "mega-gifts" -- including the first installment, $1.9 billion, of Warren Buffett's planned donation of $30 billion to four foundations, including the Bill and Melinda Gates Foundation.

But charitable bequests, those gifts designated in wills and disbursed by estates, fell by a real 5.1 percent, to $22.91 billion in 2006. The drop was partly explained by several mega-bequests in 2005, among them by the estates of McDonald's Corp. heiress Joan Kroc, John Walton of the Wal-Mart clan and Buffett's first wife, Susan.

Fissinger saw troubling trends for bequests. Not only are people living longer, he said, but they are transferring more wealth in their lifetimes to their own foundations or other philanthropic vehicles. He said charities must try harder to court bequest prospects, especially Baby Boomers.

Grantmaking by foundations climbed by 9.1 percent, to $36.5 billion, in 2006, as the invested assets and the number of those philanthropies both grew.

That offset a 10.5 percent drop, to $12.72 billion in giving by corporations. Firms reined in contributions after giving generously for disaster relief in 2005.

Giving by individuals, foundations and corporations to charities involved in human services and to international affairs had been bolstered by disaster relief in 2005. But charities in those two fields saw donations drop by 12 percent in 2006.

Total giving to the arts rose by a real 6.5 percent, reversing a 6.5 percent decline in 2005 and posting the best increase since 2000.

Giving USA used new data in its latest estimates and revised older figures dating to 1989.

cstorch@tribune.com

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