FaithWorld

Americans gave $291 billion to charity in 2010, more than 1/3 to religious groups

(A man dressed as Santa Claus from the Volunteers of America charity waits for donations near the Saks Fifth Avenue store in New York December 19, 2007/Ray Stubblebine)

U.S. donations to charity rose to $291 billion last year, but it was still more than 6 percent below a 2007 record as the nation struggles to recover from its worst recession in decades.  Americans gave nearly 4 percent more in 2010 compared to 2009, the Giving USA Foundation and the Center on Philanthropy at Indiana University said,  perking up after the recession sparked the biggest giving slump in four decades.

Religious groups accounted for the largest single recipient class by far, receiving more than one third of total donations, according to the study released on Monday.

Revised estimates by the study, which started in 1956, showed that during the financial crisis giving fell more than $10 billion in 2008 to $299.8 billion and then dropped more than 6 percent in 2009 to $280.3 billion.

Patrick Rooney, executive director of the Center on Philanthropy at Indiana University, said that giving in 2010 grew by 2.1 percent after adjusting for inflation. “But the sobering reality is that many nonprofits are still hurting, and if giving continues to grow at that rate, it will take five to six more years just to return to the level of giving we saw before the Great Recession,” he said.

Guestview: How Catholic should a Catholic charity be?

(Homeless Egyptian children enjoy a meal in Kafr El Sisi Center for Children at Risk in the Giza neighbourhood of Cairo March 12, 2007. The street children are fed, taught vocational skills, given health care and counselled at the center run by Caritas/Goran Tomasevic)

The following is a guest contribution. Reuters is not responsible for the content and the views expressed are the authors’ alone. Abigail Frymann is Online Editor of the British Catholic weekly The Tablet, where this first appeared.

By Abigail Frymann

How Catholic should a Catholic charity be? The confederation of Catholic charities Caritas Internationalis  elected a new secretary general, Michel Roy, last week after the re-appointment of the previous incumbent, Lesley-Anne Knight, was blocked, apparently because the Vatican wanted a stronger Catholic identity.

Islamist charity aims to be Pakistanis’ salvation in flood crisis

aid line (Photo: Pakistani flood victims line up for aid distribution in Muzaffargarh district, September 2, 2010/Damir Sagolj)

Lime green dresses for girls spill out of the sack of food, supplies and shoes — a gift from the Islamist charity Jamaat-ud-Dawa (JuD) to help flood victims celebrate the Muslim festival of Eid this month.

Blacklisted by the U.N. over its links to the Lashkar-e-Taiba militant group blamed for the 2008 attack on Mumbai, the JuD has been quick to help people hit by Pakistan’s floods, raising fears among U.S. officials that Islamists use aid to gain recruits.

But it does not have the capacity to establish a big presence — the devastation was so vast that roads were cut and the only means of transport is helicopter — so JuD officials say they are trying to make up for this by other, thoughtful, means.

FACTBOX – Lashkar-e-Taiba charity wing in Pakistan flood relief work

dawaThe Jamaat-ud-Dawa, the humanitarian wing of the Pakistan-based Lashkar-e-Taiba militant group, has been providing relief to those hit by Pakistan’s floods.

It is operating in flood-hit areas under a different name, the Falah-e-Insaniyat, after the JuD was blacklisted by the United Nations following the November 2008 attack on Mumbai, which was blamed on the Lashkar-e-Taiba. Pakistan has said  it will clamp down on charities linked to Islamist militants amid fears their involvement in flood relief could exploit anger against the government and undermine the fight against groups like the Taliban.

United States Agency for International Development head Rajiv Shah toured a camp run by the Falah-e-Insaniyat on Wednesday.

Taiwan Buddhist charity Tzu Chi sets up shop in atheist China

charity 1China’s ruling Communist Party has a testy and often bitter relationship with religion.  During the chaos of the 1966-76 Cultural Revolution, temples and churches were shut, statues smashed, scriptures burned, and monks and nuns forced to return to secular life, often after receiving a good beating or even jail. (Photo: Suzhou, June 10, 2005/Thierry Roge)

While the officially atheist Communist Party hardly pushes religion these days, its attitude has softened considerably, though rights groups frequently complain of sometimes harsh restrictions on Christians and Muslims especially.

On Friday, the Taiwanese Buddhist charity the Tzu Chi Foundation opened its Chinese chapter, in the historic eastern Chinese city of Suzhou, perhaps better known in the outside world for its stunning gardens. Officials say Tzu Chi is the first overseas non-governmental organisation to receive the Ministry of Civil Affairs’ blessing to operate in China. Normally they have to register with the Commerce Ministry as businesses.

Afghanistan to probe NGOs after “preaching” report

aid

Afghanistan has launched an investigation into the activities of hundreds of aid groups after a local media report accused a Norwegian organisation of preaching Christianity, a crime punishable by death.

Foreign and Afghan non-governmental organizations (NGOs) are involved in essential humanitarian projects across the country — helping out in areas ranging from health to education — but some Afghans remain skeptical of their motives and suspect they could be a front for proselytising. (Photo: An Afghan girl with refugee women waiting to receive free blankets distributed by a foreign charity in Kabul on December 2, 2002/Radu Sigheti)

Afghanistan’s economy ministry said on Sunday it had formed a commission to investigate all NGOs after a local TV report accusing Norwegian Church Aid (NCA) of promoting Christianity.

US charities hit by recession’s impact on spending

soup kitchen

Mealtime at the Capucin Soup Kitchen in Detroit, Detroit, 9 Dec 2008/Carlos Barria

Thousands of small U.S. charities are likely to close this year as cautious donors and governments tighten spending and some states consider removing nonprofit tax breaks, experts said during a panel discussion on “The New Nonprofit Reality” on Wednesday.

“States are looking for any opportunity for tax revenue this year and nonprofits are increasingly a very big target,” said Stacy Palmer, editor of The Chronicle of Philanthropy.

Buddhist charity turns bottles into blankets for disaster victims

bottles (Photo: Crushed plastic bottles at the Tzu Chi Foundation recycling factory in Taipei, 4 Nov 2009/Nicky Loh)

A plastic bottle thrown into a Taipei recycling bin could be reincarnated as a blanket to warm disaster victims in any of 20 countries, thanks to a unique project by the world’s largest Buddhist charity.

The Taiwan Buddhist Tzu Chi Foundation has been taking plastic bottles from the waste stream of Taipei, a city of 2.6 million, for three years to convert them into about 244,000 polyester blankets intended for disaster zones. It has sent volunteers with relief supplies to some of the world’s biggest disasters, including Hurricane Katrina in the United States in 2005 and last year’s devastating Sichuan earthquake in China.

This week, Tzu Chi expanded its one-of-a-kind recycling effort to begin making shirts, scarves and cloth shopping bags.  It sends the plastic bottles to a factory that breaks them down into a polyester fabric, which is then sent to crew of volunteers who fashion it into blankets or garments.

Philanthropy outlook upbeat, but not for religious charities

oxfamPhilanthropy does not seem to have been hit by the global economic downturn. Contrary to some initial fears after the stock market plunge last year, giving by the rich to charitable causes seems to be rising as younger donors get more active in the field. But the report by Barclays Wealth, the wealth management arm of the British bank, says faith-based charities face falling donations because they’re not in step with this new generation of philanthropists.
(Photo: donation box in London Oxfam shop, 2 Dec 2008/Simon Newman)

The report, entitled Tomorrow’s Philanthropist, is upbeat about charitable giving based on the bank’s survey of 500 “high net worth investors in the UK and US.” As it said in a summary of the report: “Despite the global downturn, three quarters (75 per cent) have not decreased their contributions, whilst more than one in four (26 per cent) have increased their giving in the last 18 months.”Buried in the report is a sobering angle for churches and religious charities: “The future is less certain for the traditional recipients of charitable donations, such as the arts and religious organisations. On balance, high net worth donors stated that these causes had become less important to them over the past ten years, and that this trend would accelerate over the next decade if the causes in question failed to engage in a meaningful way with the next generation of givers.”In a report graphic, religious charity seems set for the biggest reduction in donations, -16%, while health and medical charities should see a +58% rise in gifts. The other losers are the arts (-14%) and animal causes (-6%) while the number two and three growth leaders are children (+41%) and environment (+35%).These results could be skewed by the sample group that Barclays Wealth used. The report did not analyse the expected drop in faith-linked donations any further, so it’s not clear whether a wider survey of donors below the report’s rarified donor group might show better support for religious charities.Do any readers have recent information about how religious charities are doing in the downturn? (UPDATE: please read the first comment below for more information on this)Here is the PDF file of the report and Barclay Wealth’s summary of it. Below is a short video on it by Hayley Platt of Reuters Television. Since video clips are short and reports like this long, the report’s main points are copied below the video.The report’s main points are:• We are at the beginning of a new age of philanthropy – A new breed of wealthy philanthropists is emerging who are more socially aware and more motivated to give back to the communities they came from, as well as global causes.• The wealthy are still giving despite the downturn – The recession has failed to dampen philanthropic spirit; the commitment of those who already give will remain resolute, and some wealthy individuals are actually increasing the levels of their funding in order to ensure that their charitable goals are met.• The wealthy will play an increasingly important role, compared to governments, in funding welfare projects – The recession will potentially increase the role of the wealthy philanthropist on a broad basis, as governments around the world become more constrained in the causes they can fund. High net worth givers will become an invaluable source of innovation and investment for charities.• The wealthy prefer to fund projects directly – Respondents increasingly feel that they can make a bigger impact and drive change more effectively by giving directly to charities, rather than supporting causes indirectly through taxation.• High net worth donors are becoming increasingly active philanthropists and now seek to solve rather than simply to support – Historically, high net worth individuals have donated money and time to charities to support their endeavours. Now, however, the wealthy are far more ambitious in their philanthropic aims and are wanting to see visible or measurable change.• The worlds of charity and business are converging – Smaller, nimbler and more accountable charities are becoming increasingly attractive to donors compared to the large, traditional charities. This will have a knock-on effect and in the future, we will see the emergence of more commercial ventures which have a philanthropic aim at their core.

U.S. Catholic CEO responds to Benedict’s economic encyclical

charity-in-truthPope Benedict’s encyclical “Charity in Truth” proposed a sweeping reform of the world economic system from one based on the profit motive to one based on solidarity and concern for the common good. Like other such documents in the Roman Catholic Church’s social teaching tradition, the encyclical delivers a strong critique of unbridled capitalism. This can be uncomfortable for Catholics who champion free enterprise and some conservative Catholic writers reacted quickly and critically. One of them, George Weigel, wrote the encyclical “resembles a duck-billed platypus.” (Image: Charity in Truth/Ignatius Press)

We wanted to hear the views of a Catholic executive, one who’s involved in business rather than reacting from the sidelines. So I called Frank Keating, president and chief executive officer of the American Council of Life Insurers (ACLI). The former Republican governor of Oklahoma (1995-2003) is a former chairman of the National Catholic Review Board, which he said “sought to identify and correct the horror of sexual abuse on the part of the clergy.” He is a Knight of Malta and a Knight of the Holy Sepulchre.

DB: What’s your overall reaction to the encyclical?

keatingFK:“I haven’t read the 30,000 words but I think what the pope is proposing is not inconsistent with other papal messages. The common denominator to all of them is the worth of the individual, the dignity of every human person. So Benedict XVI focuses on the right to life, he speaks against euthanasia, he speaks against the evil of abortion, he speaks against cloning. But at the same time he talks about duties and responsibilities to the vulnerable because the vulnerable are dignified human beings as well as those who are rich and powerful.