Donations to fight virus, injustice could sustain charities

SEATTLE (AP) — A recession is expected to curtail Americans' generosity following a record year for charitable donations, but the recent wave of money dedicated to fighting the coronavirus and racial inequality in the U.S. is offering a beacon of hope for nonprofits in 2020.

The Giving USA report, released Tuesday, estimates nearly $450 billion was donated to charities in 2019, a 2.4% uptick from the previous year when adjusted for inflation. It marked a record year for giving that reflected a booming economy.

Giving amounts by individuals held steady, representing 1.9 percent of total disposable income, and they continue to make up the majority of dollars donated — nearly 70% in 2019. The rest is given by foundations, corporations and estates. Some wealthy people like Bill Gates may give both individually and through their foundations.

The Ford Foundation announced an effort last week to increase its giving by $1 billion through a bond that aims to help keep afloat donations-dependent nonprofits through the uncertainty ahead, including groups addressing both the pandemic and racial injustice.

“Our challenge is not to save any particular organization; it is to save the soul of our democracy itself,” Darren Walker, the foundation's president, said in a statement.

Though there’s sure to be disruptions in 2020 after the pandemic forced businesses to shut down and sent the economy into its worst recession in decades, donor confidence remains high, said Rick Dunham, chairman of the Giving USA Foundation board.

Dunham said his consulting firm, Dunham+Company, surveyed 630 U.S. donors in April and 80% said they would keep giving, largely because they felt more optimism about the economy recovering quickly compared with the recession a decade ago.

“I just think donors will rally and are rallying, and...