Giving by individuals, companies and foundations hit a record high last year, according to a new annual report from Giving USA Foundation and the Indiana University Lilly Family School. In 2013, Americans gave an estimated $335 billion to charities, up 3% from 2012. The new data puts annual giving on the fast track toward surpassing pre-recession totals sooner than anticipated – either this year or next.
[Cue the confetti!] This is big news for nonprofits, many of which are currently planning their year-end fundraising campaigns with the hope of raising more in donations this year. All signs are pointing to a prosperous December 2014, including for larger campaigns aimed at driving nonprofit giving like #GivingTuesday.
But don’t pop the corks just yet. Deeper analysis shows that wealthy donors are mostly responsible for this recent surge; contributing mainly to the arts, education and health-related causes.
It is important to note that people with lower incomes are giving at a higher rate than their wealthier counterparts. The National Center for Charitable Statistics shows that people in lower income brackets gave 3.6% of their total income, compared to people making between $100,000 and $1 million, who only gave about 2.5%.
No matter how you look at these latest numbers, one thing’s for sure – it’s going to be a craaazzzyyy year-end.
Fundraisers: hold on tight!