Giving USA 2016: Stories behind the latest

Giving Trends

FRIDAY JULY 8, 2016

11:00am PST

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Housekeeping

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Welcome

Aggie SweeneyChair, Giving USA Foundation

Division President & CEO, Collins Group, A Division of Campbell & Company

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Online Moderator

Rachel Hutchisson1st Vice Chair, The Giving Institute

At-Large Director, Association of Fundraising Professionals

Vice President of Corporate Citizenship & Philanthropy, Blackbaud

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Agenda

1. Welcome and Giving USA 2016 headlines

2. Expert panel moderated by Stacy Palmer, Editor, The Chronicle of Philanthropy

3. Time for your questions!

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SOURCE: Giving USA Foundation | GIVING USA 2016

What is Giving USA?

The longest running, annual report on U.S. charitable giving

Estimates for:

Sources of giving

Amounts received by type of organization

Published by Giving USA FoundationTM

Made possible by contributions from The Giving Institute member firms, foundations, and other donors

Researched and written by the Indiana University Lilly Family School of Philanthropy

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SOURCE: Giving USA Foundation | GIVING USA 2016

2015 contributions: $373.25 billion by source (in billions of dollars – all figures are rounded)

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SOURCE: Giving USA Foundation | GIVING USA 2016

2015 contributions: $373.25 billion by type of recipient organization (in billions of dollars – all figures are rounded)

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SOURCE: Giving USA Foundation | GIVING USA 2016

Changes in giving by source 20132014, 20142015, and 20132015 (in current dollars)

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SOURCE: Giving USA Foundation | GIVING USA 2016

Total giving, 19752015(in billions of dollars)

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SOURCE: Giving USA Foundation | GIVING USA 2016

Changes in giving by type of recipient organization, 20132014, 20142015, and 20132015 (in current dollars)

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Panel Moderator

Stacy PalmerEditor, The Chronicle of Philanthropy

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Panelists

Amir PasicDean and Professor of Philanthropic Studies, Indiana University Lilly Family School of Philanthropy

Mari Ellen Reynolds LoijensChief Business, Development and Brand Officer of Silicon Valley

Amy WolfeAFP National Board and President & CEO of AgSafe

Josh BirkholzChair of the Giving USA Advisory Council on Methodology and Principal at Bentz Whaley Flessner

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Key economic indicators which help drive giving: personal consumption, disposable personal income,

GDP, corporate pre-tax profits and S&P 500.

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Corporate sponsorships grew in 2015; the increase is expected to continue

through 2016.

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Total assets held by the three largest commercial donor-advised funds exceeded

those held by community foundations in 2014. The gap widened in 2015.

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Between 50% and 60% of donors only give once to an organization. Overall donor

retention remained at 46% between 2014 and 2015.

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Each year about 5% of estates leave a charitable bequest.

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In 2014, 84% of millennial employees made a charitable donation and 70%

volunteered.

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Bill and Melinda Gates donated $272 million to

the endowment of theBill & Melinda Gates Foundation in 2015.

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Eight gifts of $100 million or more were made to educational institutions last year.Northwestern University received three

gifts of $100 million. (CFAE)

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Gifts of over $100 million totaled $3.3 billion last year, less than 1%

of all giving.

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A family contributed a personal art collection to Stanford University last year. The collection had an estimated value of

$600 million. The University announced it would construct a facility to house the art.

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Two-year growth in giving equaled 12.2%, the first double-digit two-year growth

since 2005 (15.4%).

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Growth in giving over the past five years averaged 3.6%, outpacing the growth in

GDP (2%).

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All four sources of giving increased last year, and eight of nine recipient types

experienced increases as well.

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The Great Recession ended in 2009. Since that time giving has increased 23%. Giving has

recovered from the Great Recession at an annual rate of 3.6%, which outpaces the average

recovery of 3.4% (data since 1980).

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Nepal was struck by an earthquake on April 25, 2015. The disaster killed 8,000 people. The United

Nations estimates that donors worldwide gave $475 million to support relief efforts. The Lilly

Family School of Philanthropy estimates Americans gave almost $164 million.

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“Mega Gifts,” defined by Giving USA research as gifts of $300 million or more, accounted for $2.85 billion from living individuals and another $1.66

billion in bequests. 85% of Mega Gifts are estimated to have come from the technology industry. Pierre and Pam Omidyar (eBay) gave

over $327 million last year.

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Between 2009 and 2014, the number of publicly-announced gifts of $1 million and up declined by

31%, but the total value of those gifts rose by 20%. The average gift rose from $8.13 million to $14.06 million. (Million Dollar List, published by

the Lilly Family School of Philanthropy)

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It is estimated that colleges and universities received 39% of the largest

gifts in the U.S. Foundations received 37%, while Human Services received 3.5%.

(The Chronicle of Philanthropy’s Philanthropy 50 List)

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The Giving Pledge is an initiative started by Bill Gates and Warren Buffet, in which participants

promise to give away more than half their fortunes during their lifetime or after death.

There are now 143 known members. Giving USA estimates the 118 Giving Pledge households in the U.S. hold a total net worth of $483 billion.

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David Rockefeller is the oldest member of the Giving Pledge at 100 years old. Cari Tuna is the youngest at the age of 29.

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Giving USA cited four separate gifts of art collections or rare books in 2015 that were each valued at over $200 million. It is speculated these gifts are motivated, in part, by a spike in

the value of rare art and manuscripts and the tax advantages of giving these collections away. Art and

manuscripts are taxed at a higher rate than other long-term capital gains.

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Giving USA develops an estimate for giving by individuals who itemize and a separate model for those who do not

itemize on their taxes. The result is a nationally-representative picture of charitable giving by all households in the U.S. Macro estimates of giving are mostly impacted

by changes in income and held assets, patterns of giving as tracked on tax returns, and changes in attitudes toward

financial security.

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The Lilly Family School of Philanthropy uses the Philanthropy Panel Study (PPS) in its work to estimate charitable giving. The

study includes responses of more than 9,000 American households on their

charitable giving behaviors.

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Bank of America Studies of High Net Worth Individuals (Lilly Family School of Philanthropy) defines high net worth

households as earning more than $200,000 and/or having a net worth of over $1 million (not including primary

residence). According to the Census Bureau, there were 7 million households with incomes higher than $200,000. Lilly

Family School of Philanthropy estimates 50% of giving comes from these households.

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Association of Fundraising Professionals 2016 Fundraising Effectiveness Survey estimated donor

retention in 2015 (of 2014 donors) at 46%, and that 37% of philanthropic revenue gain was due to upgraded donors. For every 100 new donors, the survey estimates 96 previous donors were lost.

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Foundation Center’s 2015 Foundation Giving ForecastSurvey reported 67% of Community Foundation’s in the

survey increased their giving. Increases are due to higher valuation of existing assets and new gifts to the community

foundations. It is believed larger community foundations are growing faster than small community foundations. Chicago Community Trust announced in December of 2015 it had

raised $1.5 billion in a multi-year campaign.

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Your Turn!

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Order your Giving USA 2016 productswww.GivingUSA.org

Use code Napa15 to save 15%

Giving USA 2016Stories behind the

Latest Giving Trends