Informed by historical trends, the guide illustrates the possible impacts of recessions
and seven steps social good organizations can take now to build resilience
CHARLESTON, SC, September 8, 2022 /PRNewswire/ — The Blackbaud Institutea research division of Black Baud (NASDAQ: BLKB), the global leader in cloud software for social good, has released a new guide Philanthropy in a Recession: How Savvy Organizations Navigate Uncertain Times. Assessing data from 11 U.S. recessions, the guide identifies trends and potential implications to help charities navigate the uncertainty that accompanies occasional economic downturns.
“A review of recessions over the past 40 years shows that philanthropy is quite resilient and can withstand short-term economic fluctuations,” said Ashley Thompson, Managing Director, Blackbaud Institute. “This guide aims to give social good organizations a better indication of what to expect in a potential recession and information to help foster resilience.”
Main results of the study:
- While the same macroeconomic factors that influence the US economy can also influence the philanthropic sector, donations typically lag stock market volatility by about two years, effectively insulating philanthropy from short-term economic swings.
- The three economic indicators with the strongest relationship to charitable giving are wealth, as represented by the S&P 500 Index, income, as measured by the gross domestic product of the United States, and tax policy .
- According to Donner UNITED STATES, total donations have increased steadily over the past four decades, even after adjusting for inflation. In times of recession, the impact is obvious, but in the long term, donations continue to increase.
- Adjusted for inflation, giving increased by more than 300 billion dollars between 1979 and 2021.
- Total charitable giving has increased or remained stable in current dollars every year since 1979, except for three years that experienced significant economic declines: 1987, 2008 and 2009.
- Donor Advised Funds (DAFs) are particularly resilient in times of economic shock, as DAFs accumulate assets over time, providing donors with a pool of available cash to donate when conditions require additional support.
The guide offers a wide range of historical research in the context of long-term trends, drawing on data from the annual Giving report UNITED STATES Report. Additionally, the guide includes seven steps organizations can take today to future-proof their operations, tips for nonprofit finance teams, and general trends to watch out for.
This information can be found in the full Philanthropy Through Recession guide. here. All Blackbaud Institute resources are offered free of charge, as part of Blackbaud’s giving philosophy.
About the Blackbaud Institute
The Blackbaud Institute stimulates research and insight to accelerate community impact for social good. It brings together expert partners from across the philanthropic sector to foster diverse perspectives, collective thinking, and collaborative solutions to the world’s biggest challenges. Using the social good community’s most comprehensive dataset, the Blackbaud Institute and its partners conduct research, uncover strategic insights, and share findings widely to drive effective philanthropy at every stage, from fundraising to results. Knowledge fuels the future of social good, and the Blackbaud Institute is a driver of this progress. Learn more, subscribe to our newsletterexplore our database good social practices and trends, see the latest quarterly donation statisticsand check out our latest resources at www.blackbaudinstitute.com.
Blackbaud (NASDAQ: BLKB) is the global leader in cloud software for social good. Serving the entire social good community – non-profit organizations, institutions of higher learning, K-12 schools, healthcare organizations, faith communities, arts and culture organizations, foundations, companies and individual change agents – Blackbaud connects and enables organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility (CSR) and the environment, governance (ESG), school management, ticketing, grant making, financial management, payment processing and analysis. Serving the industry for over four decades, Blackbaud is a remote company based in Charleston, South Carolinawith operations in United States, Australia, Canada, Costa Rica and the UK. For more information, visit www.blackbaud.com or follow us on Twitter, LinkedIn, instagram and Facebook.
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