Posted on October 25, 2005

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Giving to Top 400 Charities Up 11.6 Percent, Survey Finds

Donations to the country's biggest nonprofit organizations grew by 11.6 percent during fiscal year 2004, a survey conducted by the Chronicle of Philanthropy finds.

According to the Chronicle's fifteenth annual Philanthropy 400 survey of the four hundred charities that raise the most money in private, nongovernmental support, many of the top charities reported that they are now raising as much or more than they did in the late 1990s, when they experienced double-digit-percentage increases in giving, due largely to the booming economy. Few large nonprofits say they have seen a significant slowdown in contributions in fiscal year 2005, despite concerns about possible "donor fatigue" in the wake of the series of natural disasters around the world. Moreover, fundraisers said that they are expecting a number of larger donations over the next couple of months, as donors take advantage of a new law, enacted after Hurricane Katrina, that allows taxpayers to write off 100 percent of donations that add up to their adjusted gross income and were made after August 28, 2005. Previously, only 50 percent of a donor's adjusted gross income was deductible.

Some nonprofit leaders, however, reported that challenges still lie ahead as rising fuel and postage costs start biting into operating budgets and squeezing the wallets of many low- and moderate-income donors. Charities are also facing growing competition from an increasing number of organizations launching ambitious fundraising campaigns, while government scales back funding for charities.

After a change in the survey's methodology, United Way of America topped the list, with the organization's 1,350 chapters raising a total of $3.9 billion, an increase of 0.4 percent from 2003. The Salvation Army, which ranked No. 1 last year, came in second with $1.5 billion. And third place went to Feed the Children, up from No. 9 last year. Rounding out the top five charities were the American Cancer Society (No. 4) and the AmeriCares Foundation, which raised $868.1 million and $800.5 million, respectively.

For the first time in the survey's history, the American Red Cross did not make the top ten; it raised $557.1 million last year, a 5 percent decline, and fell to No. 11 from No. 8. However, the relief agency is likely to return to the top ten next year, when it will report some $532 million raised after the Asian tsunami. Donations to the Red Cross following Hurricane Katrina, which now total $1.2 billion, will be included in the organization's 2006 fiscal year.

Hall, Holly. Kerkman, Leah. Moore, Cassie. “Philanthropy Bounces Back.” Chronicle of Philanthropy 10/27/05.

Primary Subject: Philanthropy and Voluntarism
Location(s): United States

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