Giving by Corporations
Giving by corporations includes all IRS itemized cash and non-cash donations to U.S. charities contributed by all American corporations and businesses and their foundations.
Giving by corporations is predicted to increase by 3.2% in 2019 and by 2.6% in 2020.xiii
The projections for giving by corporations in 2019 and 2020 exceed the historical 10-year annualized average rates of growth. In 2019, corporate giving is expected to surpass the historical 25-year and 40-year annualized average growth rates, while corporate giving is predicted to be below the 25-year and 40-year annualized averages in 2020.38
Specific factors that will significantly and positively influence corporate giving in 2019 and 2020 include:xiv
- Growth in GDP, and
- Above-average growth in corporate saving.
These two factors account for the majority of the predicted growth in giving by corporations in these years.
Increases in corporate profit for 2019 and 2020, as well as declines in consumer sentiment for the preceding and projected years, may moderate the positive results projected for corporate giving in these years.39 The negative influence of current-year corporate profits on corporate giving may reflect a reduced need to use philanthropy as a marketing tool and increased current-year production costs that tap into the same company resources used for philanthropic initiatives.40
- xiii All growth rates are based on predictions for giving in inflation-adjusted 2017 dollars using 2018 as the base year. The Philanthropy Outlook projects the growth rates of variables into 2019 and 2020; predicted growth rates are compared with the variables’ historical 10-, 25-, and 40-year annualized means. See Table 1 for these data.
- xiv The Scenario Analysis section of this report describes how changes in some of these factors may affect corporate giving.