Top 50 Charitable Donors Gave Less in 2010

Despite the hype surrounding the Giving Pledge last year, the top 50 private donors in the U.S. gave less in 2010 than they did in the previous nine years. In 2006 the 50 biggest private donors gave out $50.7 billion compared to $3.3 billion in 2010. Broader gauges reflect the same drought. In 2009, 400 charities saw an 11% drop in donations.

While the 2008 financial crisis may explain the overall drop in charitable giving, it doesn’t explain the drop in the “Philanthropy 50.” A blip in the economy doesn’t affect billionaires the way it affects other donors. So why did the top 50 donors decrease their donations as well? Maybe the tax uncertainty clouded some people’s donation plans, or maybe there was a lag in how the financial crisis affected the books of charities. Charitable foundations are required to give away 5% of funds each year based on the previous 12-16 quarters, which could cause a delayed reaction. Further, Gates’ and Buffet’s Giving Pledge may also have put a brake on some high-wealth donations.

See Big-Ticket Philanthropy Under Pressure, Private Wealth, Feb. 17, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.