Citation URL: http://www.urban.org/MarieGantz

The strong economy and tight labor market of recent years have spurred hefty increases in executive compensation in corporate and nonprofit America. Yet, the growth of salaries and benefits for nonprofit officers has been significantly more controversial than increasing executive compensation in the corporate sector. Even government regulators have taken notice, as evidenced by the temporary regulations recently passed by the Internal Revenue Service (IRS).

As immense individual wealth for some is generated by an extended bull market in this global high-tech economy and the unprecedented transfer of wealth from the so-called "baby boomers" begins, more attention is being focused on giving to charity. Over the next half century, the transfer of wealth in the United States is expected to range between $41 trillion and $136 trillion, with some researchers predicting that charities will realize an additional $6 trillion to $25 trillion in donations. Yet in spite of renewed interest in understanding philanthropic gifts, the primary sources of information on individual giving are very limited and give only an aggregate view at the national level. These data show that most households give about 2 percent of income, a proportion that has remained relatively constant for years despite economic ups and downs, changing government policies, and changing attitudes about charities and philanthropy.

Despite a growing interest in philanthropy, spurred by a thriving economy, a bull market, and a high-tech industry that spawns new millionaires overnight, little information is available on how much individuals give to charity. According to estimates by the AAFRC Trust for Philanthropy, a total of $134.8 billion was contributed by US residents in 1998. This constitutes 77 percent of the total $175.1 billion given by individuals, foundations, corporations, and bequests. About 44 percent of total giving was to religious organizations, and fifteen percent went to education nonprofits. A quarter of the contributions were divided among health, human services, and the arts, while three percent was given to environmental groups.

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