New Guide from the Blackbaud Institute Shows How Philanthropy Fares During Recessions
Informed by Historic Trends, the Guide Illustrates Possible Impacts of Recessions
and Seven Steps Social Good Organizations Can Take Now to Build Resiliency
"A review of recessions over the last 40 years shows that philanthropy is quite resilient and can withstand short-term economic fluctuations," said
Key Findings from the Study:
- While the same macroeconomic factors that influence the
U.S.economy can also influence the philanthropic sector, giving typically lags behind stock market volatility by about two years, effectively shielding philanthropy against short-term economic fluctuations.
- The three economic indicators with the strongest relationship to charitable giving are wealth, as represented by the S&P 500 Index, income, as assessed through
U.S.gross domestic product, and tax policy.
- According to
Giving USA, total giving has steadily increased over the last four decades, even when adjusted for inflation. During times of recession, impact is evident, but in the long run, giving continues to rise.
- Adjusted for inflation, giving increased by over
$300 billionbetween 1979 and 2021.
- Total charitable giving has increased or stayed flat in current dollars every year since 1979, except for three years that experienced significant economic declines: 1987, 2008 and 2009.
- Donor advised funds (DAFs) are particularly resilient in times of economic shock, as DAFs build assets over time, giving donors a ready stash of cash available to give when conditions require extra support.
The guide offers a wide array of historical research against the backdrop of long-term trends, leveraging data from the annual Giving
These insights can be accessed in the full Philanthropy Through Recession guide here. All
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Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the
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