from staff
For the first time since the recession began in 2007, Americans said that in 2011 they were more likely to increase their giving to charity than decrease their charitable support.
That’s according to the annual Dunham+Company New Year’s Philanthropy Survey conducted by Wilson Research Strategies.
Dunham is a Dallas-based marketing, communications and fundraising strategy firm.
The greatest concentration of increased giving for 2011 will most likely be in the South and the Northeast, according to the survey.
One in five households in those regions said they intended to increase their giving, compared to only 16 percent in the West and 14 percent in the Midwest.
Overall, compared to 2010, there was a 29 percent increase in all households that said they planned to increase their giving in 2011, a 20 percent jump in households that said their giving will stay the same and a 48 percent drop in the number of households that said they will decrease their giving.
Overall, 18 percent, or nearly one in five respondents, said they planned to increase their giving in 2011.
“This year’s study is very good news for charities,” said Rick Dunham, president and CEO of Dunham.
“After three years of Americans indicating a weakening support for charities, it is very encouraging to see such a significant jump in the number of households that say they plan on increasing their giving to charity, and those saying they would decrease their giving dropping by half,” he said.
“But I must say I am concerned with the potential impact on charities should Congress move to eliminate the charitable tax deduction as part of tax reform,” he said.
The survey found that nearly one out of two Americans (48 percent) indicated that the deduction was important in determining the amount they will give to charity.
The importance of the charitable deduction rises as the household income increases, with nearly two out of three (62 percent) of those who make $100,000 or more saying it influences their giving.
This deduction is most significant to African-Americans, and 57 percent said it was important to them, with almost one in two Hispanics and whites saying the same.
The demand for this deduction was consistent across the country except for the West, where 10 percent fewer households indicated it was important.
The deduction is most significant to those 45-64 years of age, with 55 percent saying the deduction was important to them.
“The study shows clearly that this tax deduction is a significant factor in charitable giving for the households that are the backbone of nonprofit support,” Dunham said.
“Based on IRS data, households making more than $100,000 represent about 10 percent of the population but make up 69 percent of all individual charitable donations. For 2009, that would have equaled about $150 billion,” he said.
This upbeat news for charities is fostered by the fact that nearly three out of four Americans (72 percent) said that their financial situation had improved or at least stayed the same.
Most importantly, 35 percent of households making $100,000 or more said their financial fortunes had increased.
“Based on our research, 2011 is a year when we could see the beginning of a comeback for charities,” said Dunham.
“Congress must be careful as it works through tax reform, however, not to undermine this potential turnaround, and the strongest and most effective charitable sector in the world,” he said.
It was the fourth survey and the third time it was conducted in January. The study was part of Wilson Research Strategies January Omnibus Study of 1,000 adults nationwide.