A study from the Indiana University Lilly Family School of Philanthropy shows that charitable giving in the United States is projected to increase by 4.8 percent in 2015 and an additional 4.9 percent in 2016. The report is presented by philanthropy consulting firm Marts & Lundy.

The expected growth exceeds the annual rates of growth in the years following the Great Recession (3.1 percent) as well as the long-term average growth in total giving from 1973-2013 (3.8 percent).

The nonprofit sector has a significant impact on US society and the economy. Approximately 1.4 million nonprofits provide 11 percent of US jobs and 9 percent of total wages. Americans give an estimated $335 billion, or 2 percent of US GDP, to charity in 2013. Yet not many resources exist for anticipating and planning for the future of giving.

“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,” said John M. Cash, Ph.D., chair of the board of directors and senior consultant and principal at Marts & Lundy. “Given that many nonprofits are hugely dependent on private contributions, the need for accurate projections for charitable giving is especially great.”

Among the key points from the philanthropy outlook study are:
– 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.
– 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 percent in 2015 and 4.8 percent in 2016.

“The report supports emerging evidence that improvements in the economic environment will have implications for donors and nonprofits,” stated Una Osili, Ph.D., director of research for the Lilly Family School of Philanthropy. “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.”

The full report is available for free at http://martsandlundy.com/the-philanthropy-outlook.

Source: Indiana University Lilly Family School of Philanthropy