JGA Blog

According to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017, total charitable giving in the United States grew by 5.2 percent to $410.02 billion in 2017. This marks the highest total amount given in the 40 years Giving USA has tracked this data, both in current dollars and when adjusted for inflation.

What this Means for Human Services Organizations:

Giving USA estimates that giving to human services organizations increased 5.1 percent in 2017, to $50.06 billion. This record total amounted to 12 percent of total giving across subsectors, behind only religion and education.

JGA is pleased to share with you news about the latest study on trends in high net worth philanthropy from U.S. Trust and the Indiana University Lilly Family School of Philanthropy. We were honored to host a webinar shortly after the release to discuss the report in detail with Dr. Una Osili, the report's author at the Lilly Family School of Philanthropy, and William Jarvis, with U.S. Trust, Bank of America's Private Wealth Management.

The 2018 U.S. Trust Study of High Net Worth Philanthropy, published by U.S. Trust in partnership with the Indiana University Lilly Family School of Philanthropy, finds that wealthy Americans continue to be generous with their time and money, increasing the amount they gave on average to charitable causes and organizations in 2017, including giving in the wake of natural disasters. The biennial study shows that 90 percent of high net worth (HNW) households gave to charity last year, and 48 percent volunteered time to nonprofit organizations and causes.

By Sarah Tedesco, Executive Vice President, DonorSearch

Major gift fundraising is an important part of any nonprofit’s long-term strategy. We all know the 80/20 rule: 80% of your nonprofit’s donations come from 20% of its supporters. For many organizations, this has now become the 90/20 rule. But, finding enough people with the capacity to give major gifts and a connection to your organization can complicate this ratio.

With smarter prospect research, your major gifts officer has a better chance of securing those all-important donations with maximum efficiency.

Prospect research is looking at publicly available information to determine who in your community might be willing and able to give major gifts to your nonprofit. Some commonly considered data points include both wealth indicators and previous philanthropic behavior.

So how can your team best combine the insights of prospect research with your major gifts fundraising strategy? Our five best tips are:

According to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017, total charitable giving in the United States grew by 5.2 percent to $410.02 billion in 2017. This marks the highest total amount given in the 40 years Giving USA has tracked this data, both in current dollars and when adjusted for inflation.

What this Means for Religious Organizations:

Giving to religion continues to capture the largest percentage of philanthropic dollars (31%) of all subsectors by far, despite having the slowest positive growth rate at 2.9 percent in 2017. This is a continuing pattern of slow growth over the past several years. With total giving of $127.37 billion last year, charitable giving to faith-based organizations continues to grow overall, despite a national trend of decreasing affiliation with and attendance at religious institutions. Among the major Protestant denominations and Catholic and Jewish faith traditions, all have experienced the downward trend in affiliation and attendance. Interestingly, research shows that any form of religious affiliation increases an individual’s average annual charitable contributions overall.

Guest Blogger:   John Thomas, Writer/Strategist, JTPR, Inc.

Nonprofit organizations do amazing things. Things like curing diseases … feeding people … making art accessible to the masses … helping communities come together and fight injustice. 

Total Giving

According to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017, total charitable giving in the United States grew by 5.2 percent to $410.02 billion in 2017. This marks the highest total amount given in the 40 years Giving USA has tracked this data, both in current dollars and when adjusted for inflation.

With this milestone year, U.S. giving continues a steady growth trend over the past eight years, indicating a positive climate for philanthropy. Giving to every category of recipient organizations increased when measured in current dollars, except for international affairs, which dropped by 4.4 percent. Four subsectors (foundations; arts, culture and humanities; public-society benefit; and health) saw significant growth of 7 percent or more, with foundations leading the way with an impressive 15.5 percent growth over 2016. 

What this Means for Health Organizations:

Giving to health increased by 7.3% in 2017, with a total of $38.27 billion—the highest amount the subsector has ever received in both current and inflation-adjusted terms, surpassing the previous year’s high of $33.14 billion. Growth for health organizations has increased for the past six years, at an average of 7.9 percent from 2013 – 2017. This growth rate well exceeds the growth rate of 4.3 percent in total giving across all subsectors for the same period.

JGA once again is pleased to sponsor the Kindelsperger Forum on Wednesday, September 5th.  The Forum honors our late colleague Kris Kindelsperger and aims to bring new ideas to the practice of our common work in philanthropy. This year, we will explore the rapidly changing environment of workplace giving and what it means for nonprofits.

Like many others, I began my career in fundraising by attending the Principles and Techniques of Fundraising class at The Fund Raising School at Indiana University’s Lilly School of Philanthropy. As a new member of the development team at the Indiana University Foundation more than 20 years ago, I learned that, typically, an organization could anticipate that 80% of the dollars raised in a fundraising campaign would come from 20% of the campaign donors. The so-called 80/20 rule.

Much has changed in the last twenty years. Mirroring, or perhaps in response to, the changing landscape of wealth distribution in our society, fundraising campaigns have more significant dollar goals that rely on fewer and fewer donors in order to achieve success. Campaigns are now typically based upon the projection that 90% of the dollars will come from 10% of the campaign donors. In some corners of the nonprofit sector, notably higher education, successful campaigns may have 95% or more of the dollars contributed from as few as 5% of the campaign donors.

According to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017, total charitable giving in the United States grew by 5.2 percent to $410.02 billion in 2017. This marks the highest total amount given in the 40 years Giving USA has tracked this data, both in current dollars and when adjusted for inflation.

With this milestone year, U.S. giving continues a steady growth trend over the past eight years, indicating a positive climate for philanthropy. Giving to every category of recipient organizations increased when measured in current dollars, except for international affairs, which dropped by 4.4 percent. 

What this Means for Colleges and Universities:

Giving USA estimates that giving to education organizations (of which giving to higher education typically accounts for about 70 percent of the total) increased 6.2 percent in 2017 to $58.9 billion. The Council for Aid to Education’s Voluntary Support of Education (VSE) survey shows that individual giving (alumni and non-alumni) to higher education increased by 6.3 percent, a strong rebound from 2016, with alumni contributions growing by a significant 14.5 percent, foundations by 5.5 percent, and corporations holding steady at the 2016 level.

Nonprofit Board retreats can be a productive tool to get key volunteers and staff on the same page. It’s an opportunity to devote a significant amount of time solely to an important topic or agenda item, without interrupting the normal business of a standing board meeting.

We recommend setting aside time for you and your organization’s leadership to focus on important issues. Board retreats can also be an effective tool for building camaraderie and collaboration among board members. According to the BoardSource Leading with Intent: 2017 National Index of Nonprofit Board Practices, 42 percent of nonprofit boards hold annual retreats for their board members. The report indicates that providing this type of social time can be impactful when it comes to increasing the level of satisfaction board members feel with their board service. CEO’s of boards which held annual retreats were more likely to report their board worked as a collaborative team and that their board members were eager to serve the maximum number of terms on the board.  

As for planning a retreat and the topics that need to be covered, there are several considerations that should influence your thinking: