Giving USA Shows Where The Money Is — And Is Going

Despite the crazy, seesawing stock market, philanthopic giving is growing for the second consecutive year, according to the 2011 Giving USA report. Last year, an estimated 117 million U.S. households, 12 million corporations, 99,000 estates and 76,000 foundations gave money to charities, its annual study found — a total of $298.42 billion. That’s up 4% versus 2010, when the total was $286.91, but still shy of the record $309.7 billion given away in 2007.

The total fell to $290.9 billion in 2008 and again to $278.6 billion in 2009. Now, the rate of increase is slow, but at least it’s growing.

International affairs got the biggest boost and is the fastest-growing philanthropic sector, but funding of arts/culture/humanitites also increased last year, by an estimated 4.1% to an estimated total of $13.12 billion, which represents 4% of all charitable donations.

Giving Institute chief  Thomas W. Mesaros suggested that the appropriate reaction to these numbers was “a subdued sigh of relief.” But Patrick M. Rooney, the executive director of the study’s co-sponsor, the Center on Philanthropy,  noted that “In the past two years charitable giving has experienced its second slowest recovery following any recession since 1971.”

Not so good. Since individual giving as a percentage of disposable personal income remained at 1.9 percent in 2011, the same as in 2009 and 2010, we need personal income to grow, which isn’t really happening.

There are a few additional, relevant numbers for arts groups: Individuals comprise the largest portion of giving by far: it rose 3.9 percent in 2011 and represents 73 percent of total giving — $217.79 billion. Plus, the press release said, “When you add together what is contributed to philanthropy through American households, bequests and family foundations, that piece of the
total $298.42 billion estimated giving “pie” for 2011 comes to 88 percent.”

By contrast, giving by foundations represented 14 percent of total giving.

So why museums let foundations push them to do things they don’t want to do — which so many admit privately — continues to be beyond me.