INDIANAPOLIS — Hoosier households gave an estimated $3.86 billion to charity in 2006, but this amount is less than
the $4.09 billion they gave in 2003, after adjusting for inflation, according to a new study, Indiana Gives 2008, released
today by the Center on Philanthropy at Indiana University.
The study also found that fewer Indiana households contributed to charity in 2006 (the latest year for which data are available)
than in 2003. Just under 59 percent of households gave in 2006, compared to almost 70 percent in 2003 (11 percentage point decrease).
Hoosiers' participation in charitable giving was down among all income levels measured by the survey. Among Indiana households
with incomes less than $50,000, 41.7 percent made a donation in 2006 whereas 56 percent gave to charity in 2003. For households
making between $50,000 and $100,000, 81 percent gave to charity in 2006, a 7.5 percentage point decrease from 2003. Among
households with incomes of $100,000 or more, 79 percent made a contribution, compared to 98.4 percent in 2003.
"While fewer Indiana households are giving to charity, the good news is that those who do give are giving more,"
said Patrick M. Rooney, interim executive director of the Center on Philanthropy. "Among Indiana donor households, the average
amount donated to charity increased by 21 percent from $1,827 to $2,211, after adjusting for inflation."
Donors nationwide gave an average of $2,185 in 2006.
Hoosiers surveyed indicated that their primary motivation for giving was religious beliefs. This motivation was cited by 91
percent of respondents, which may explain why just under half of all donations from Indiana households (47 percent), totaling $1.8 billion,
were given to religious organizations.
Nonprofits serving basic human needs, such as food banks and homeless shelters, received $381 million, accounting for 9.9 percent of the
total. Public-society benefit organizations, such as United Ways and community development groups, received $326 million, or 8.4 percent of
funds given by Indiana households.
"Although 78 percent of Indiana household giving goes to help charities within the state, the study shows a decline in giving in 2006,"
said Heidi Frederick, assistant director of research for the Center. "While we don't know whether that pattern continued in 2007 and 2008, these
findings remind us that it is important for Hoosiers to consider supporting Indiana nonprofits and the needs they help meet, particularly during
these difficult economic times."
Indianapolis-area donors gave an estimated $1 billion of the total $3.86 billion that Indiana households gave to charity. Donors in the state's
capital region gave an average of $2,142, slightly lower than the statewide average of $2,211.
Fifty-eight percent of Indianapolis households made charitable donations in 2006, compared to 80 percent in 2003. Rates of participation in
giving decreased among Indianapolis' lower and middle income households. In 2006, 35 percent of households with less than $50,000 in income gave to
charity, falling from 62 percent in 2003.
Indiana Gives 2008 asked about motivations for giving and reasons that people stop giving. After religious beliefs, the next two most
frequently reported motivations were that "those with more should help those with less" and because "charity helped you or your friends or family."
Among Hoosiers who said they had ever stopped giving to a particular charity, the most frequently cited reason (57 percent) was that they felt
the organization misled the public about its work. Nearly 55 percent said they felt they had "lost a connection" to the charity, while 50 percent
said they stopped giving due to a lack of personal finances.
For charitable organizations, these findings underscore the importance of providing donors with clear and accurate information about the organization's
activities and impact. Nationally and locally, donors want to know how their gifts make a difference in people's lives.
Indiana Gives 2008 also contains information on corporate and foundation giving in Indiana. The full report is available at
http://www.philanthropy.iupui.edu/Research/docs/2008IndianaGives_Rev2.pdf
About the Center on Philanthropy at Indiana University
The Center on Philanthropy at Indiana University is a leading academic center dedicated
to increasing the understanding of philanthropy and improving its practice worldwide
through research, teaching, public service and public affairs programs in philanthropy,
fundraising, and management of nonprofit organizations. A part of the Indiana University
School of Liberal Arts at IUPUI, the Center operates program on the IUPUI and IU
Bloomington campuses.
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