Sure, corporate fat cats, stock market millionaires and others at the top of the economic pyramid have been the biggest beneficiaries of the nation’s unprecedented economic expansion. But it’s noteworthy that, according to recent data, America’s richest citizens also are more than keeping pace on the philanthropic front as well.
Donations to charity last year increased by 7.5 percent, the largest jump since 1989. Gifts from individuals, foundations and corporations totaled an estimated $143.5 billion in 1997, up from $133.5 billion in 1996, according to Giving USA, an annual report put out by the American Association of Fund-Raising Counsel Trust for Philanthropy.
Fundraisers quoted in The Chronicle of Philanthropy last week attributed much of the increase to the numerous gifts of securities made last year because of the strong performance of the stock market. Also, foundations gave about 11.4 percent more because their assets skyrocketed.
About three-fourths of all donations came from individuals, who gave 6.1 percent more. Much of that, observers say, came from the richest Americans, who were heavily solicited to make larger gifts to United Way campaigns, universities and other institutions. A heavy dose of “keeping up with the Joneses” also helped, with many donors following the lead of mega-contributors such as Ted Turner ($1 billion to the United Nations), financier George Soros ($500 million for programs in Russia) and Microsoft’s Bill Gates ($200 million to establish the Gates Library Foundation.)
Celebrity influence also may explain why gifts to international concerns–which had dropped the previous two years–gained in 1997 more than any other charitable area. Donations to international aid grew 15 percent, a phenomenon some observers credited to the extraordinary attention to global issues generated by the deaths of Princess Diana and Mother Teresa.
Here at home, donations to social services climbed for the second straight year–by 4.1 percent–after suffering declines in 1994 and 1995. Human-service executives say the mellowing of the divisive debate over welfare reform has people focusing once again on ways to help the poor rather than on ideology.
That’s heartening, given that the full benefits of the robust economy have not trickled down to those at the base of the pyramid. At least indirectly, the continued generosity of Americans through charitable donations is helping to spread the wealth.
