Stock Market Rally Aids Charitable Giving Donations To U.S. Charities Rose More Than 10 Percent Last Year

Giving to U.S. charities rose more than 10 percent to nearly $144 billion last year as American generosity surged, spurred by a stock market rally and higher wages.

More effective fund-raising strategies also contributed to the increase, the American Association of Fund-Raising Counsel’s Trust for Philanthropy said in releasing its annual survey Wednesday.

But the industry group urged charities to develop better long-term strategies, warning that the jump in 1995 contributions was largely driven by one-time factors.

In Spokane, higher stock prices spurred increased giving among major donors. Smaller donors, who are the vast majority of those who give, were unaffected by stock prices, according to sources at local charities.

Giving to United Way, for example, dropped approximately 2 percent last year.

At Foundation Northwest, a $5.5 million gift from the Leuthold Foundation skewed foundation statistics. But president Peter Jackson said the foundation has received a higher number of donations from big investors who wish to donate stock market profits.

The New York-based American Association of Fund-Raising Counsel represents consulting firms that help charities and other institutions raise money.

The group found that donors gave 17 percent more to philanthropies helping society and the public, including research institutes; 12.5 percent more to environment and wildlife groups; 9 percent more to health groups; and 8 percent more to educational institutions.

Personal giving grew 11 percent, and corporate contributions rose about 7 percent. Religious contributions, while up only about 5 percent, continued to take the largest share, receiving 44 percent of all 1995 donations.

Behind the overall growth in generosity was a boom in the stock market last year that encouraged investors to share more of their profits 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.

Nancy Raybin, chair of the philanthropy arm, called the factors behind 1995’s surge “a vivid reminder” that non-profit groups need to step up fund-raising efforts.

, DataTimes