Analysis Charitable Choices: Consumer Preferences

from NewsLink, Vol. 6, No. 4 Summer 2002

When the call goes out for help, Americans are ready to respond with time, money and resources, despite signs of a slowing economy. According to a survey conducted by Independent Sector, a national umbrella group of nonprofit organizations, about 89 percent of US households made charitable contributions in 2000. The average household gave $1,620 or 3.2 percent of its income. According to the latest figures, donors continue to favor religious organizations (See Figure 1). The average donation, in 1998, to a religious organization (expressed in 1993 dollars) was $888, which is more than twice the average amount given to educational institutions ($339). But a trend away from religious, and toward secular causes, seems to be in evidence. Donations to environmental groups, community foundations, education and youth development organizations have been growing faster than donations to churches (See Figure 2). Donations to groups concerned with environmental issues grew by 79.6 percent between 1995 and 1998 while donations to community foundations increased by 49.7 percent. At the same time, donations to religious organizations grew by only 15.4 percent. It will be interesting to see how the recent revelations about the Catholic Church will affect these statistics. Figure 1 Average Household Contribution Growth by Type of Charity 1995-1998 (1993 Dollars) Other types of charities showed negative or very slow growth. Human services contributions declined by 7.7 percent while adult recreation declined by 10.6 percent. Charitable contributions to arts and culture grew by only by 2.3 percent. Figure 2 Average Household Contribution Growth by Type 1995-1998 Source: Independent Sector, Statistical Abstract of the United States: 2001