2010 marked the first time, in two years, that charitable giving had increased. This happened despite the fact that the economy was just beginning its road to recovery. According to the annual philanthropy report of 2011 by Giving U.S.A foundation and Center on Philanthropy at Indiana University, individuals, corporations and foundations gave estimated amounts of $290.89 billion in charitable contributions in the year 2010, which was a 3.8% increase in current dollars, or 2.1% growth in inflation adjusted dollars from the previous year’s contribution.
The growth in contributions was a reversal on the trend in the previous two years and good news for non -profit making organizations. In 2008 and 2009, recession caused the largest drops in charitable giving in 40 years, but the drop in recession from 2010 marked a rise in charitable giving.
Religious organizations, in an expected trend, continued top the chart as the top beneficiaries of charitable donations in 2010, totaling to an estimated amount of $101 billion, which was a sizeable 35% of all donations made in the year.
Donations made to human services in the same year added up to an estimated amount of $26.49 billion. The contributions to the human services comprised he majority of funds donated to Haiti disaster relief, which was estimated to have cost $1.43 billion.
Individual donations, which include estimated amounts for itemized charitable deductions, grew by 2.7 percent in current dollars or 1.1 percent in inflation adjusted dollars in 2010 to an estimated $211.77 billion. Included in individual donations were estimates for “mega-gifts”, which Giving USA described as gifts large enough to affect the percentage change of total donation by 1 percent from one year to the other.
Corporate giving, on the other hand, grew by 10.6% in current dollars or 8.8% in dollars adjusted for inflation to an estimated $15.29 billion. Giving USA says that around $22.83 billion was donated by the corporate society, despite the fact that there was no estate tax in 2010, and as a result no tax excuse for bequests to charities.
For taxpayers hoping to enjoy tax benefits through charitable donations, they must ensure they follow the donations rules of the IRS, one of which is to ensure that the donation that one is giving is received by the charitable organization by the 31st of December.
Donations made via credit card on the 31st of December can be filed as a donation in the current year, although the bill for the credit card gets paid in the following year.
