Despite an economic recession that's affected countless churches and ministries, here's the good news for pastors: Americans remain a giving people. Although the latest annual study of philanthropy from the Giving USA Foundation found that overall charitable giving dropped 2 percent between 2007 and 2008, among religious organizations it actually rose by 5.5 percent.
Last year, Americans gave a whopping $307 billion to charities, compared to $314 in 2007. Although the decrease was only slight, it represented the first since 1987 and only the second time since the foundation's annual survey began 54 years ago. Of the total amount given, congregations and ministries received $106 billion in 2008—a full 35 percent of all charitable donations.
"I think the reason religion does well during a recession is, people feel an immense connection to their houses of worship," said George Ruotolo, a nonprofit-fundraising consultant who once led the Giving USA Foundation. "They realize that houses of worship cannot go to corporations or foundations for support. They have to rely on the generosity of members. There is that connection in faith and mission."
Although analysts and experts are hopeful for an improvement this year as financial markets attempt to rebound from last year's crash, those working for ministries and charities will understand the dilemma made evident by the report: As the economy continues to slide, need for their services continues to rise. More than two-thirds of public charities reported decreased giving, yet the majority (54 percent) of those dedicated to helping people indicated a rise in calls for help. Organizations created to assist children and youth seemed to be the most affected in 2008, with three-fourths of them indicating that their current budgets could not keep up with the mounting needs.
Still, those who have tracked trends in charitable giving believe this year proves the resolve of Americans to give even during lean times.
"It would have been easy to say 'not this year' when appeals came their way, and we definitely did see some belt-tightening," said Giving USA Foundation chairman Del Martin. "What we find remarkable is that individuals, corporations and foundations still provided more than $307 billion to causes they support, despite the economic conditions. ... It could have been a lot worse."
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