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Charitable giving picks up despite rocky economy

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After pulling back from charitable giving for two years, Americans were slightly more generous in 2010—donating an estimated $290.9 billion, according to a national study released Monday.

The estimate was 2 percent higher in inflation-adjusted dollars than the previous year, when individuals, corporations and foundations gave $280.3 billion, according to the Giving USA Foundation, based in Chicago. The Center on Philanthropy at Indiana University produces the annual estimate as Giving USA's research partner.

"Our revised estimates show that 2008 and 2009 saw the largest drops in giving in more than 40 years as a result of the Great Recession," said Edith Falk, chairwoman of the Giving USA Foundation. "Despite the fragile economic recovery, though, Americans continued—and even increased—their support of organizations and causes that matter to them in 2010."

Charitable giving fell 13 percent over the two worst years of the recession, so the increase last year was not nearly enough to pull the not-for-profit sector out of the doldrums.

"The sobering reality is that many nonprofits are still hurting, and if giving continues to grow at that rate, it will take five to six more years just to return to the level of giving we saw before the Great Recession," said Patrick Rooney, executive director of the Center on Philanthropy. 

Charities that deal first-hand with the ill effects of a poor economy are the ones hurting most. Giving USA estimates that giving to human-service organizations declined 1.5 percent to $26.5 billion. A significant chunk of that, $1.4 billion, was ultimately sent to Haiti for earthquake relief.

Religion, which rakes in a 35-percent share of all philanthropy, saw gifts decline by less than 1 percent to $100.6 billion.

Meanwhile, these sectors saw modest and even big improvements on an inflation-adjusted basis:

— Arts, up 4.1 percent to $13.3 billion.

— International causes, up 13.5 percent to $15.8 billion.

— Education, up 3.5 percent to $41.7 billion.

— Foundations, up 11 percent to $33 billion.

— Public-benefit societies (including United Way and donor-advised funds), up 4.5 percent to $24.2 billion.

The uneven recovery in giving might have something to do with the fact that large institutions, such as universities and museums, are more sophisticated in fundraising, Center on Philanthropy research director Una Osilli said.

Wealthy Americans shifted their giving in 2009 to human services, according to a separate survey of high-net worth households. Last year, they might have gone back to causes that they traditionally support, such as arts and education, as the recession stopped dominating headlines, Osilli said.

Giving USA's annual study came under fire last year. The organization initially estimated that charitable giving had increased in 2009, despite high unemployment and many charities' continued struggle to raise money. The Center on Philanthropy tweaked its model for this year's report. Spokeswoman Adriene Davis said the center periodically reviews its model and did so to account for the worst recession in 70 years.

The model, which crunches IRS, economic and other data, now includes personal consumption—a data that set accounts for all spending, making it a better indicator of philanthropic activity than personal income during an extreme downturn, Davis said.


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  1. The lack of street-level retail in this part of the Block 400 development is a huge oversight and somewhat perplexing given the high quality of recent city-backed developments downtown. This portion of an otherwise stellar development is going to have an extremely negative impact on the aesthetics, urban environment, walkability, and livability of the NW quad.

    I'm not sure why One America would oppose including retail. And I find it very hard to believe that the thousands of office workers literally footsteps away wouldn't be able to support new lunchtime destinations and other businesses along Illinois and Vermont. We've got to reconnect the disjointed segments of our blossoming downtown, not create yet another lifeless dead zone that no one wants to walk through. Sadly, that is exactly what this massive ugly single-use structure will accomplish.

    Why not follow the precedent set by the proposed garage in Broad Ripple and create an attractive mixed-use structure? Why does the city get it there but not downtown?

  2. Bear mind that DS is just not another lazy, rich kid. He attended Columbia grad school and was in investment banking for 4 or 5 years before joining his dad's company. An annual grant of stock options at market price would be the correct pay-for-performance program then no one could argue with it.

  3. This comes from an executive who gave his wife a Bentley as a wedding present. He is heir to billions of dollars. He should be working for a dollar a year and stock options only. Seems like a conflict of interest, time to bring in a non-relative as CEO. Haven't met him, but have heard his arrogance is legendary.

  4. If the property is improved, property taxes increase - more revenue. If AUL's employment grows, more income taxes - more revenue. If more people move and/or work downtown, it means more demand for goods and services, more employment, more taxes - more revenue, etc., etc. It's not just the city throwing money at big companies. There's much, much more. Yes, the project has private backing, but apparently not enough to make the deal work and therefore they don't have it covered. And while Marsh is a nice anchor, they are no credit tenant like a Kroger or somebody. And if the police department has a major shortfall, they need to reduce the force. This city has way too many policemen.

  5. It's hard to defend billionaires, but David Simon has created a tremendous amount of value for shareholders since joining the company. He is widely regarded as one of the best CEOs in America. The company is growing and making good strategic decisions. And Indy is fortunate to have SPG HQ'd here. Now, does that merit $120 million (about 15 mil over 8 years or so)? Maybe. But this family and David have truly built a business. Should Zuckerberg be worth $20 bil? Who knows. Hopefully David will be supportive of Hoosier charities like his family has.

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