• The average college endowment shrank 6% in the fiscal year ending June 30, 2002, according to a survey by the National Association of College and University Business Officers.  This was the worst performance by college endowments since 1974, a stark contrast to the investment boom of the 1990's and a financial blow at a time when many public institutions are losing state funding.

• Contributions to most nonprofits decreased or remained flat in January-October 2002 compared to donations during the same period in 2001, according to a new survey by Guidestar.  Reduced support from grantmakers, loss of corporate gifts, government cuts, and the bear market's affect on individual donations were listed as the primary causes for decreased or stagnant contribution levels.

• Fundraisers were notably less optimistic in the second half of 2002 than they had been earlier in the year about the climate for charitable giving in the U.S., according to the December 2002 Philanthropic Giving Index.  It is likely that fundraisers' impressions at the end of 2002 were shaped by a continuing slump in the general U.S. economy.  Despite this, they expressed higher expectations for giving in the next 6 months.

• To celebrate its 25th anniversary, the John D. & Catherine T. MacArthur Foundation, headquartered in Chicago, announced $21.5 million in special one-time grants to 41 arts and cultural groups, including National Public Radio.

• The annual Charitable Solicitation Licensing Report compiled by the North Carolina Secretary of State's office shows an increase in gifts of nearly 90% in 2002 over 2001.  State residents gave more than $126.4 million to the nonprofits measured by the report, compared with $66.6 million the previous fiscal year.

• Slightly more than two thirds of all American adults (69%) gave money to charity in the 12 months ending last July, down from 80% for the same time period ending in July 2001, according to a survey produced for Epsilon by the Barna Research Group.  The drop in the percentage of people giving to charity apparently reflects an erosion of confidence in nonprofit organizations, the poll found.

• For the second straight year, the combined net worth of Forbes magazine's 400 wealthiest Americans declined in 2002, reflecting the economy's continuing troubles.  Their total net worth of $872 billion was down from $946 billion in 2001, and $1.2 trillion in 2000.  The biggest loser on the list was also the richest person:  Microsoft co-founder Bill Gates.  Gates lost $11 billion for a net worth of $43 billion.  The biggest winner was investor Warren Buffett, who remained #2 on the list, with a net worth of $36 billion (up from $33.2 billion in 2001).

• 5% of people in the top 1% of the wealthiest Americans are 35 years or younger (Advancing Philanthropy).

• By 2013, the number of millionaires will triple due to inheritances (Lincoln Financial Group).

• Charitable giving has increased by more than $15 billion annually since 1997, reaching $190.16 billion last year according to Giving USA.  Gifts and bequests from donors to foundations rose 42.1% in 2001.

• Since 1985, the number of foundations in the U.S. has almost doubled, reaching 50,200 in 2000 (Foundation Center).

• Over the next 20 years, parents of baby boomers will bequeath approximately $20 trillion (Affluent Market Institute).

For more information about the transfer of wealth and its impact on philanthropic giving, please contact Lisa Marie Ferrell, our Director of Marketing, at lmferrell@capdev.com to schedule a free presentation to your organization.

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