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Charitable Giving Expected To Grow 4% In 2016

Charitable giving is expected to grow another 4.1 percent in 2016.

That’s according to the Indiana University Lilly Family School of Philanthropy's Outlook for the next two years. That covers donations to traditional charitable organizations for all sources individuals, foundations, estates, and corporations.

While you might think corporations would donate the most money on an annual basis nearly 90 percent of giving comes from the individual.

Associate Dean Patrick Rooney says that 90 percent figure includes donations from checkbooks, estates, and family foundations. The rest is split between foundations and businesses.

"We think this is going to be helpful for non-profits and foundations in terms of how they think about building their staffs and building their budgets, allocating their grant funding," says Rooney. "But also in terms of setting their fundraising goals for the next couple of years."

Rooney says giving on the individual level is very much connected to the economy --as people can afford to give more they will.

"Because they want to be philanthropic and Americans have a very strong core value of giving and philanthropy, the dollar amounts that they give do vary year to year and the rates of growth do vary year to year and those are highly correlated with changes in the economy."

Interestingly enough their forecast on charitable giving covers only legal charities so Internet crowd sourcing donations, which are often for charity purposes, don't appear on their estimates. That's something Rooney says in the future they may have to adjust for.

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