There's an interesting report that all Americans should check out. The Center on Philanthropy at Indiana University, which is one of the best known groups of researchers on the American nonprofit sector, has released results of a study of where Americans give their money. These are the people who process the data in the annual Giving USA study, which presents the estimated amount of charitable giving by U.S. citizens, based on tax filings and statistical modeling.
(I have my own misgivings about the Giving USA estimates, which can turn out to be highly inaccurate. This past June the latest estimate was released, with the number reaching $295 billion in U.S. giving. Since the previous reported estimate had been $250 billion, this seemed quite a large jump. But the previous year's estimate had been revised in the fall -- to $289 billion. There are justifiable reasons, but it's still quite frustrating if you try to use these numbers, which are -- for better or worse -- the best that we have.)
Anyway, back to the point. Out of that $250 billion estimate that was reported for 2005, the amount that directly went to help the needy was only $19 billion. Any grammar school math student can see that it's not even 10 percent, which is deplorable. It's important to note that word "directly," however. The biggest chunk of money given by Americans goes to religious causes; that's been true for the half century or so that this study has been conducted. While a lot of that money goes to run various religious efforts (read: pay for salaries, pay for insurance, pay for phones and facility maintenance), a lot also funds programs and services designed to help the needy. Depending on how the Salvation Army is categorized, for example (I believe it's religion, but I'm not sure; it might depend on how the gift appears in the tax data), a few billion might be directly helping to feed and house the poor. And there are several thousands of organizations that might also fall into those types of descriptions that need to be looked at. Frankly, I find it hard to believe the amount of charity that goes to the most in need is less than 25 percent. It's sobering, nonetheless.
Of course, I'm glad people support the arts, and education, and the environment -- I do, too -- but I will start rethinking my charitable giving a bit now as a result of this study.
According to researcher Melissa Brown of the Center on Philanthropy, who posted on the Google.org Blog about the study she worked on, this is a first step.
As someone who takes a professional interest in the American nonprofit sector, I'm glad to see this important work is being done. And I look forward to seeing them to more to work through this data. I think the Center is an appropriate place for it, but I also agree with Patrick Rooney, the research VP, who called the data "much squishier than we prefer."
Ok, flabberdata, it's time to Pump ... you ... Up. Let's take a look at how we can help our fellow man in need. There but for the grace of God....
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