Giving Drops with Economy
COLUMBUS: Reflecting the continuing economic struggles, total charitable giving in Ohio fell from $6.54 billion to $5.87 billion in 2009, down 10 percent, according to a report Ohio Grantmakers Forum has released. The historic peak of charitable giving in the Buckeye State reached $7.38 billion in 2007.
Ohioans donated 7 percent less in 2009 than they did in 2008, although the total given reached a hefty $4.36 billion. The decrease follows on the heels of a more significant decrease of 11 percent in 2008, when the recession struck its hardest blow. Individuals in Ohio, as in the rest of the country, make up the vast majority of charitable gifts: 75 cents of every $1 in gifts to charities came from Ohio residents who donated to their favorite causes.
Foundation giving topped out at $1.22 billion in 2009, an 8 percent decrease. This was the first decrease in giving since 2002, during the aftermath of the country’s last recession. In 2008, foundation giving in Ohio had increased by a modest 3 percent.
Ohio Grantmakers Forum is an association of foundations, corporate contributions programs and other grantmaking organizations. Its mission is to provide leadership for organized philanthropy in Ohio and to enhance the ability of its members to fulfill their charitable goals.
Donations to charities decreasing
Reposted from the Oxfofd Press http://www.oxfordpress.com/news/oxford-news/donations-to-charities-decreasing-1281069.htm
By Cornelius Frolik and Rick McCrabb, Staff Writers
In 2009, Ohio taxpayers who reported earning $200,000 or more accounted for about 1.8 percent of all federal tax returns, according to the IRS. But those tax filers accounted for about 28 percent of the charitable contributions reported to the federal government — about $1.21 billion.
Espy said donors make contributions based on their “pocketbooks,” and the number of high-income taxpayers and their earnings fell considerably during the recession.
As a result of large decreases in their gross adjusted incomes and the overall number of filings, charitable contributions by Ohio taxpayers earning $200,000 or more fell 37 percent from 2007 to 2009, according to tax data. Meanwhile, contributions by taxpayers earning $100,000 or less fell by only 8.5 percent during that time.
Janet Kasler, director of knowledge management with the Grantmakers Forum, said one reason why there were larger decreases in the amount of donations by wealthier individuals was because they rely more on the stock market and their investments to determine how much they give.
The wealthy often contribute appreciated stock or mutual fund shares to charity because they can deduct the contributions on their taxes and do not have to pay capital gains taxes.
A June report by the Giving USA Foundation found that all types of charitable contributions were up about 2.1 percent in 2010 after two years of declines.