The financial crisis and ensuing recession haven’t been kind to anyone. While we may never be able to accurately quantify the overall damage, the numbers are in for charitable giving, and they’re not good.
The Chronicle of Philanthropy offered some quantifiable perspective on the crisis in the non-profit sector over these past three years in an article titled, “Giving by the Rich Dropped $30-Billion During Recession.” Indeed, from 2007 to 2009 charitable giving dropped by some $31 billion among those with incomes of $200,000 or more, according to recent data from the IRS. If you count the drop in contributions from individuals earning $100,000 or less annually, the charity deficit runs up another $4 billion or so.
Keep in mind that since these are IRS numbers, this only reflects actual charitable contributions for which deductions were taken. The recession’s effect on total charitable giving may never be fully known because many donors don’t itemize contributions on their tax returns. Ultimately, these numbers will be seen and felt by the non-profit sector, including your favorite charities and those they serve.
With the end-of-year and the season of charity on the horizon, many people including yours truly are wondering what will become of the non-profit sector in 2012. What is your plan for charitable giving this year?
Reference: The Chronicle of Philanthropy (August 29, 2012) “Giving by the Rich Dropped $30-Billion During Recession”