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Charitable Giving in the U.S. Outpaced Economic Growth

Atlas of Giving today announced results from its 2011 report on charitable giving. The report outlines charitable giving in the United States from 2011 and details how giving expanded at a faster rate than overall economic growth for the year.
According to the report released by Atlas of Giving, total giving to U.S. nonprofits rose 7.5% in 2011, an increase of $24.2 billion over the 2010 total of $322.69 billion and its forecast shows that overall giving is expected to grow 3.9% in 2012 to $360 billion.

"2011 giving growth was fueled by strong stock market performance through July, low interest rates, an improving economy, modest inflation, and aggressive solicitation" Rob Mitchell, Atlas of Giving CEO, said. "However, the increase was not enjoyed by all nonprofits. Organizations that rely on many small gifts from many small donors are still greatly impacted by the effects of continuing high unemployment."

The 2012 giving forecast reflects growth in giving at a slower rate than 2011. Giving can be expected to grow 3.9% to $360 billion. The forecast is expected to change as events unfold during the year. Natural and man-made disasters, economic events, and many other things affect the velocity and trajectory of charitable giving results. The Atlas of Giving actively monitors the factors affecting giving and provides monthly updates of the forecast to account for these.

"Overall, we've enjoyed a strong resurgence in giving. However, it's important to remember that different economic factors are tied to giving at different nonprofits, different donor types, and different geographies. Some do well, others don't," Mitchell, said. "Because high unemployment disproportionately affects small gift donors, some very large nationwide nonprofits who rely on many small gifts from individuals continue to struggle in this economy. The effects of high unemployment are long-lasting. Giving after re-employment does not resume for several years as these individuals satisfy postponed expenses like replacing and maintaining cars and other household items. Universities are doing well because alumni are not struggling with unemployment and major gift donors are giving from assets and not income."

Highlights from the Atlas of Giving Report:

2011 giving result by donor type
-Individual giving grew 7.8% to $260.18 billion accounting for 75% of total giving.
-Corporate giving grew 6.4% to $17.57 billion accounting for 5% of total giving.
-Foundation giving grew 6.2% to $44.73 billion accounting for 13% of total giving.
-Bequests giving grew 7.5% to $22.69 billion accounting for 7% of total giving.

2011 giving result by recipient type
-Growth in giving to education was particularly strong, up 9.8% to $54.3 billion.
-Human needs/disaster giving lagged other recipient groups, up 5.8% to $38.52 billion.
-Gifts to donor advised funds were at record levels in 2011.
-The percentage of total gifts going to the largest giving sector, religion, decreased from 37% in 2010 to 36% in 2011.

2011 giving by state
-Giving growth was particularly strong in four states: Pennsylvania up 13.1%, Illinois up 12.5%, Florida up 10.9%, and Texas up 10.0%.

2012 giving forecast
-The forecast is bright for charities with an environmental mission, projected to be up 8%.
-Giving to churches and religion is forecast to grow at less than half the rate of overall giving growth - up just 1.6%
-Political fundraising will divert some dollars from charitable giving but the impact will not be significant overall accounting for much less than 1% of the charitable giving annual total.

On February 1, 2012, at 12p.m. EST (1p.m. CST, 2p.m. MST, 3p.m. PST) the Atlas of Giving 2011 results and 2012 forecast will be presented in detail during a free webinar. Members of the media, nonprofit staff and board members, as well as financial analysts are welcome to participate. To register, go to http://www.infiniteconferencing.com/join and type in the participant code 79508108.

Atlas of Giving methodology

The Atlas of Giving formulas were built upon the hypothesis that charitable giving is directly tied to specific economic and demographic factors. A team of 25 PhD level mathematicians, analysts and statisticians evaluated more than 70 possible variables and their interactions with charitable giving outcomes over four decades. They found the hypothesis to prove that charitable giving is directly tied to economic and demographic factors and the Atlas of Giving has identified those factors. The research team used the relevant identified factors to create an algorithm for aggregate giving that was compared with published annual giving data dating back to 1968. The algorithm correlates to 42 years of published giving history with a coefficient of correlation of 99.5%.

The Atlas of Giving does not rely on surveys or outdated data on deductible contributions. The input variables used in the Atlas formulas are publicly reported economic and demographic measurements that are updated and reported monthly or quarterly. The Atlas is able to use its algorithms to measure total U.S. giving as it occurs monthly and provide an updated monthly forecast. Unlike any other charitable giving index or estimate, the Atlas of Giving also monitors current events (political changes, disasters, tax policy changes, important economic factors like unemployment, the stock market, consumer confidence, etc.) and provides analysis of their impact on current and future giving.

*Media Note*

A complimentary copy of the 2012 forecast and 2011 results report is available to members of the media. Infographics, created to illustrate the 2011 giving data and 2012 forecast are also available by request. In addition, access to The Atlas of Giving Professional Edition monthly update is provided for credentialed media members at no charge. Monthly giving data by sector, source, and state since 1980 are also available upon request.

To schedule an interview with Rob Mitchell, Atlas of Giving CEO, contact Jennie Whitaker at 512-215-8977 or This email address is being protected from spambots. You need JavaScript enabled to view it..

About Atlas of Giving

The Atlas of Giving is an economic intelligence tool created to measure and reliably forecast charitable giving in the United States. The Atlas of Giving was originally engineered by Philanthromax, LLC in 2010. Data from the Atlas of Giving is gathered from a series of proprietary algorithms using multiple economic and demographic variables. The algorithms match published giving data for the last 42 years with a 99.5% coefficient of correlation. The Atlas of Giving accounts for the entire giving economy and is the most precise and timely measurement of total charitable giving in the United States. For more information, visit www.atlasofgiving.com

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