Charitable Donations in U.S. Rose 10.78% in 1995, Survey Finds

U.S. charitable donations jumped by 10.78% to nearly $144 billion last year, led by increased generosity toward environmental, health and general nonprofit groups, according to a survey released Wednesday.

Helping to persuade Americans to open their wallets a little bit wider was a stock-market rally, higher wages and growing concern about threats in Washington to dismantle environmental protection, said the American Assn. of Fund-Raising Counsel Trust for Philanthropy.

The industry group also credited more effective fund-raising strategies by charities and professionals for the increase. But the association urged charities to develop better longer-term strategies, warning that the jump in 1995 contributions over the previous year was largely driven by one-time factors.

The group is an arm of the New York-based American Assn. of Fund-Raising Counsel, which represents consulting firms that help charities and other institutions raise money.

Donors gave 17% more to philanthropies helping society and the public, including research institutes. Environmental and wildlife groups drew 12.5% more donations, thanks to worries about anti-environment measures in Congress and excitement about the 20th anniversary of Earth Day in 1995, the survey said.

Donations to health groups rose 9%, education institutions rose 8% and corporate contributions rose about 7%.

But religious congregations, up about 5%, continued to collect the most, receiving 44% of all 1995 contributions.

Giving to human service groups fell about 7%, the second straight drop, but the decline eased from the previous year.

Nancy Raybin, head of the philanthropy arm, noted that aid to some groups in this category fluctuates based on natural disasters or other unforeseen troubles.

“To the extent that you can’t predict when the crises are going to happen, that affects giving in that category,” Raybin said.

The survey was based on a representative sampling of data from various sources, including the Internal Revenue Service, Gallup organization, Rand Corp., the Foundation Center and the association’s own research.

Behind the overall growth in generosity was a boom in the stock market last year that encouraged investors to share more of their profit with charities. An increase in U.S. personal income at the fastest rate in five years also helped.

In addition, charities benefited from proposals in Congress to cut tax breaks for charitable giving, prompting people to give more in 1995 instead of this year, before any tax breaks may end.

Raybin called the temporary factors behind 1995’s surge “a vivid reminder” that nonprofit groups need to step up fund-raising efforts.