June 14, 2011
While the dominant headlines during the recession have focused on the decrease in giving to nonprofits, this is not the entire story.
An analysis of giving to ECFA members released today reveals that for ECFA members renewing membership in the last six months there has been a net gain in giving to its members of 2% from 2009 to 2010. Pre-recession giving compared to three years later was $6.18 billion in 2007 and $6.32 billion in 2010, or an increase of 3.3%.
“It is very significant that this segment of the giving world was resilient and maintained itself during a difficult economic time,” according to Dan Busby, ECFA’s President. “This suggests a strong commitment of givers to the Christian faith and the generosity of God’s people.”
The recessionary impact on giving was more significantly felt by smaller charities. Organizations with annual revenue above $10 million reflected an increase in giving for the 2007-10 period of 3.1%. While the organizations under $10 million annual revenue saw a decrease of 3.2%.
Of the member data studied, 43% reflected an increase in giving between 2009 and 2010, 44% showed a decrease and the data for 13% was about the same (plus or minus 2%).
The above data is based on the data of 531 ECFA members. The 2007 data (years ending in 2007) is compared with the 2010 data (years ending in 2010) for 531 member organizations, representing 34% of ECFA’s current membership of 1,550 (The primary reason that certain members are not included in this study is because their membership renewal and the accompanying financial statements are not due until July of 2011. The ECFA members included in this study had a fiscal year ending between April and September 2011. Also some members were excluded because they were accredited by ECFA in the last three years, so comparable financial data for 2007 is not available). The data is not from based on “soft survey data but the data comes directly from financial statements prepared by independent Certified Public Accountants—primarily audits.
This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.