Despite Economic Dip, Giving Rose in 2007

A promising sign for charities is the steady growth in giving by private foundations. Buoyed by gains in stock market investments and a record $37 billion in new gifts, the combined assets of U.S. foundations rose from $550 billion in 2006 to $614 billion in 2007, according to a recent survey by the Foundation Center, a group that researches philanthropic giving.

Although much of that money remains locked in endowments year after year, foundations are spending a larger share of their assets than was true a decade ago, the survey found. More than half of foundations surveyed said they planned to increase their giving in 2008.

"What you are seeing is the value of sustained endowments that increase in good times and therefore are equipped and able to respond to society's needs in bad times," said Steve Gunderson, president and chief executive of the Council on Foundations.

In overall U.S. charitable giving, religious congregations received the biggest windfall from donors, the Giving USA study found. Religious groups collected $102 billon, or one-third of all gifts, followed by nonprofit educational organizations, which collectively raised $43 billion.

But the share of overall donations going to religious groups has decreased steadily over time. In the late 1980s and early 1990s, religious congregations received nearly half of all gifts, according to Giving USA's historical data.

Martin attributes this to increased competition among nonprofit groups for donations, as the number of charitable organizations has soared over the past decade to about 1.4 million.

In 2007, international aid agencies, environmental groups and human service charities saw the largest increases in charitable gifts. Gifts to international groups, which were so small 20 years ago that the category was nonexistent in the survey, have grown steadily, increasing by 13 percent last year to $13 billion.

"That number is indicative of what I say often: In a global economy, you have global philanthropy," Gunderson said.