News

US donors raise record amount

Fundraising | Celina Ribeiro | 17 Sep 2008

The American not-for-profit sector has defied the doom and gloom of its country’s economy by raising a record amount in 2007.

Over $300bn (approximately £150bn) was given to charities by US donors last year, according to a new study. The Giving USA Foundation survey reports that the year began with strong rates of giving but, after the stock market crash later in the year, had tapered off by year’s end.

But while the generosity of Americans is notable during a year best remembered for the appearance of the term “credit crunch” in the common vernacular, it still represents a decline in the growth of charitable giving in the USA.

The $306.39bn donated by Americans in 2007 was 3.9 per cent higher than the $294.91bn donated in 2006. However, recent years have seen far higher increases in yearly giving rates, with 2005 rates rising by 13 per cent on 2004 levels and 2004 rates up 10 per cent on the year before.

US ahead of the UK

But compared with the UK, the US third sector is nevertheless performing strongly. The UK Giving 2007 survey by CAF and NCVO reported a 3 per cent decline in the amount donated to charity – adjusted for inflation – which came in at a total of £9.5bn for the year. When inflation is included in calculations, the US rate of giving for the same period rose by 1 per cent. 2007 also saw a 3 per cent drop in the proportion of the British public dipping their hands in their wallets for charity.

US donors were also far more willing than their British counterparts to donate to religious causes. These accounted for one-third of all donations in the US, while religious causes in the UK received just 16 per cent of the pie.

Individuals remain the most important single donor group in the US, accounting for nearly two-thirds of all donations.

$2.1m for dinner with Warren Buffett

The power of the individual donor was on show at a recent eBay auction for a dinner with William Buffett, the billionaire investor billed by Forbes magazine as the richest man in the world. An unnamed donor parted with $2.1m for the honour of dining with Buffett, testament to the steadfastness of US philanthropy and entrepreneurialism, even in the face of threatened recession.

The study found that since around 2002, US charitable giving has remained stable in relation to GDP at roughly 2.2 per cent.

Tweet

Who's Who: Celina Ribeiro