Report: U.S. Charitable Giving Projected to Grow 4.8 Percent in 2015, 4.9 Percent in 2016

“Despite the scope and impact of the nonprofit sector, it lacks the type of myriad, reliable resources that business and government have long used to understand the outlook for their sectors. Given that many nonprofits are hugely dependent on private contributions, the need for accurate projections for charitable giving is especially great,” said John M. Cash, Ph.D., chair of the board of directors and senior consultant and principal at Marts & Lundy. “The Philanthropy Outlook is based on a carefully constructed econometric model grounded in serious academic research. It is a key new planning tool for the nonprofit sector.”

The Philanthropy Outlook provides data for predicted year-to-year growth rates in U.S. philanthropy for 2015 and 2016, including overall giving and giving by individuals/households, foundations, estates and corporations. It includes context and explanations of the economic factors and conditions that will significantly influence the predicted changes in giving. It will be updated annually.

“In today’s dynamic environment, nonprofit professionals and fundraisers need reliable information about current and future giving trends to develop effective fundraising strategies. The Philanthropy Outlook enables fundraisers to gauge the future philanthropic climate and adapt to anticipated conditions,” said Amir Pasic, Ph.D., dean of the Lilly Family School of Philanthropy. “While individual results will vary from organization to organization, fundraisers can find encouragement and opportunity in these projections.”

Among the key results:

• Contributions from individuals/households, estates, corporations and foundations are all expected to increase in 2015 and 2016
• Individual/household giving is predicted to increase by 4.4 percent in 2015 and by 4.1 percent in 2016. It includes giving by both households that itemize charitable deductions on tax returns and those that do not itemize.
• Foundation giving is projected to rise by 7.2 percent in 2015 and by 6.7 percent in 2016.
• Giving by estates is predicted to increase by 2.7 percent in 2015 and by 6.3 percent in 2016.
• Corporate giving is expected to grow by 6.0 percent in 2015 and by 4.8 percent in 2016.

“While the economic and financial sector has seen greater than normal economic volatility in recent years, the projected growth in the overall economy suggests a more stable and more positive environment for philanthropy,” said Una Osili, Ph.D., director of research for the Lilly Family School of Philanthropy. “The report supports emerging evidence that improvements in the economic environment will have implications for donors and nonprofits. Importantly, though, increasing philanthropic giving will require that nonprofits have not only a positive economic environment but also a strong, clear case for support and thoughtful cultivation of donor relationships.”