Feb 23, 2007

All Not Well in the State of Philanthropy

by Laura Starita

Two stories, in multiple and varying iterations, have dominated philanthropy news in the past few months. The first focuses (positively) on the introduction of business-based innovation to philanthropy, as promoted by such new entrants Michael Dell, Pierre Omidyar, Richard Branson et. al. The second champions the generosity of private givers - the Warren Buffetts and Herbert and Marion Sandlers of the world. Together, these stories paint a rosy picture of the state of philanthropy.

Yet earlier this week, two stories have come out that run counter to this rosy coverage. The first, courtesy of Philanthropy News Digest reports that 4.4 million fewer Americans volunteered their time in 2006, a drop of about eight percent from the year before. A five-year surge in volunteerism in the wakes of 9/11 and Hurricanes Katrina and Wilma has probably masked a more dramatic move away from donating time to charity. For anyone who doesn’t think this amounts to much, take a look at the Hudson Institute’s Index of Global Philanthropy. It values Americans’ volunteer hours at $4 billion (estimate for 2004). Using those estimates, the decline would be valued at $320 million.

The other story from the New York Times highlights a dramatic decrease in donations to the arts. Corporate philanthropy used to give nearly 10 percent of its gifts to arts organizations, but in 2004 it gave only 4 percent (while corporate giving as a whole is on the rise). Meanwhile, giving to international issues like poverty and health has remained flat, while giving to universities in the United States is becoming increasingly concentrated on just 20 schools.

So, keep in mind that all is not wine and roses in philanthropy these days.

Philanthropy News Digest: Volunteerism Figures Fall to Five-Year Low

Hudson Institute: Index of Global Philanthropy

New York Times: Arts Organizations Adjust to Decline in Funding