Upload
merry-small
View
228
Download
0
Tags:
Embed Size (px)
Citation preview
Fairfield Senior Center- Philanthropy in the U.S.OCTOBER 13, 2015
Topics Covered During the Next Six WeeksWeek 1 (Today) The State of Giving in the U.S.Week 2 Why People GiveWeek 3 Giving in the U.S. versus Philanthropy OverseasWeek 4 Government Spending and Charitable Giving (Crowding
Out or Crowding In)Week 5 Corruption in the Nonprofit Sector – Nonprofit
MalfeasanceWeek 6 The New Philanthropy and the Principal-Agent Problem
To Get Copy of Slides Go to: www.faculty.fairfield.edu/mleclair Click on link that says Fairfield Senior Center
Week 1 – Giving in the U.S.U.S. by far the most generous country in terms of giving per capitaReflection of both higher income and tradition of philanthropyProtestant ethic of taking care of neighbor(s)Giving was up close and personal
Also, as will be argued in a later presentation, much of what was once philanthropy is now in the public sector in other developed nations
Historical StatisticsTotal Giving by Source and as a Percentage of Total Giving, U.S., 1990-2012, Billions of Dollars
Year Religion Percent Education Percent Hum. Services Percent Health Percent 2006 94.63 31.96 40.07 13.53 30.74 10.38 24.22 8.18 2007 97.79 31.44 42.69 13.72 31.45 10.11 25.28 8.13 2008 98.22 32.78 35.89 11.98 35.44 11.83 24.14 8.06 2009 99.56 36.29 34.96 12.74 35.95 13.10 26.08 9.51 2010 97.54 33.29 37.32 12.74 38.25 13.06 26.64 9.09 2011 101.78 33.32 38.62 12.64 38.91 12.74 26.80 8.77 2012 101.54 32.11 41.33 13.07 40.40 12.74 28.12 8.89
Who are the Most Generous?Individual Giving, Average and in Proportion to Income, 2011
Income (range) Income (average) Donations (average) Donations/Income
Less than $70,000 $31,842 $1,054 0.033
$70,000-79,999 $74,742 $2,019 0.027
$80,000-99,999 $89,108 $2,099 0.024
$100,000-119,000 $108,549 $2,179 0.020
$120,000-149,999 $133,318 $3,242 0.024
$150,000 and Over $247,261 $6,059 0.025
Source: Bureau of Labor Statistics, Consumer Expenditure Survey
Generosity does not Rise with Income, at least in terms of Proportion Donated•Contradicts a lot of what we think we know• As a result of big, wealthy donors that create a lot of “noise” when they give
•Also surprising, given that large donors are the only ones that can truly benefit from the tax breaks associated with giving• People with lower incomes generally are better off taking the standard
deduction
Current Statistics 2014 Charitable Giving by Source:•Individual giving, $258.51 billion, increased 5.7 percent in current dollars over 2013.
•Foundation giving, $53.97 billion, was 8.2 percent higher than 2013
•Bequest giving, $28.13 billion, increased 15.5 percent 2013
•Corporate giving, $17.77 billion, increased 13.7 percent over 2013 giving
Source: Giving USA
Numbers Reflect a General Trend•Foundation and bequest giving is rising at a faster pace than individual giving•Represents rapid accumulation of wealth•May influence overall patterns of giving in the future•For now, individual giving dominates
Where does money go? Religion—$114.90 billion, 2014 giving increased 2.5 percent higher
Education—giving increased to $54.62 billion, 4.9 higher
Human Services—$42.10 billion total was 3.6 percent higher
Health—$30.37 billion 2014 estimate was 5.5 percent higher than the prior year
Arts/Culture/Humanities—$17.23 billion, growth of 9.2
Others Environment/Animals—The $10.50 billion estimate for 2014 was up 7.0 percent
Public-Society Benefit—the $26.29 billion estimate for 2014 increased 5.1 percent
International Affairs -- $15.10 billion estimate for 2014 decreased 2.0 percent, in current dollars, from 2013. The drop was 3.6 percent when adjusted for inflation.
What about corporate giving? Why do businesses give?Provides a company with an enlightened imageParticularly businesses that may not be viewed favorably by the publicPetroleum business, tobacco, etc.
Improves work satisfaction among employeesRetention may improve
Firms may donate to causes that help train needed laborInterest of a top executive might also be a driver
Result-Business Giving Looks Very Different from Personal Giving – Largest Participants
1. Novartis Patient Assistance Foundation, Inc. (NJ) $452,981,816 12/31/2013
2. Wells Fargo Foundation (CA) 186,775,875 12/31/2013
3. The Wal-Mart Foundation, Inc. (AR) 182,859,236 01/31/2013
4. The Bank of America Charitable Foundation, Inc. 160,479,886 12/31/2013
5. The JPMorgan Chase Foundation (NY) 115,516,001 12/31/2012
6. GE Foundation (CT) 124,512,065 12/31/2013
7. The Coca-Cola Foundation, Inc. (GA) 98,175,501 12/31/2013
8. Citi Foundation (NY) 78,372,150 12/31/2013
Direction of giving for Corporate Programs Main Destinations were:◦Education (29%)◦Health (25%)◦Community Investment (15%)
Mechanism of Giving Corporate Foundations (34%) Direct Giving (49%) In-Kind (17%)
◦Last category a reflection of drug companies that donate medicines to poorer Americans and to overseas initiatives
Tax Treatment and Total Giving•Tax Incentives are a significant driver of giving for those in the upper-income brackets• Less, however, than many people assume
•The standard deduction for a couple filing jointly in now in the range of $12,500. •Outside of high-tax, high-property price, Connecticut, you may
not reach that by itemizing•Tax breaks not a consideration when giving
In much of Europe•Tax breaks are available only for specific donations (as in Italy)•Another reflection of the subsidiary role played by the charitable sector as opposed to government social spending•Discussion is brought up periodically in the U.S. (removal of tax breaks)
Corporate Deduction•5% of Income – Provides some incentive to give, but the prime motivator is still need to demonstrate enlightened nature of business•This deduction was opposed by many when instituted, given the motives and nature of corporate giving
Uniqueness of U.S. Situation also Reflected in the Mechanisms of Giving•Charity Aggregators (United Way)
•Giving through the workplace (and matching programs)
•More recent phenomena:• Crowdfunding• Social Pressure Websites (Hungersite.com)• Giving through investing (Impact Investment)
Questions