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Analysis
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from NewsLink, Vol. 7, No. 4 - Summer 2003
As with any economic activity, philanthropy reflects the preferences of donors who vote with their dollars. Religious organizations continue to receive an overwhelming percentage of charitable donations made by Americans. According to the latest figures, the average donation to such organizations is $1,147 (expressed in 1993 dollars). This figure represents a 40% increase between 1995 and 2000.
The average donation, in 2000, to a religious organization was almost three times the average donation to educational institutions ($429).
On the other hand, a trend away from religious causes appears to be under way (see NewsLink, Summer 2002). Now the fastest growing category is donations to groups that provide recreational activities for adults. The average donation to these groups increased by 106%, from $152 in 1995 to $313 in 2000. Donations to public or societal-improvement organizations, which include advocacy groups and think tanks, increased 84%. Donations to environmental efforts and education also posted strong gains of 64% and 43% respectively.
There was also a measured increase in giving to youth development organizations. Such groups saw a 65% increase in the average donation made by households.
Certain types of charities lost ground during this period, even as personal income rose. Arts and cultural organizations saw a decline of 3% while health organizations saw a decline of 7%. The most stunning decline came at the expense of organizations dealing with international issues, perhaps a bellwether of American complacency. The average size of a donation dropped 20%.
Data collection in the world of philanthropy suffers from a significant time lag. All the data used in this analysis were posted before September 11, 2001. The effects of the events of that day – and two major wars — on donor preferences are yet to be determined.
NewsLink is the quarterly newsletter of the Beacon Hill Institute for Public Policy Research at Suffolk University. © 1996-2003. All rights reserved.
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