December 2006

For the third year in a row, the majority of participants in GuideStar's nonprofit economic survey reported that contributions to their organizations had either increased or stayed about the same as contributions during the previous year. For the fourth consecutive year, a substantial majority also said that demand for their organizations' services had grown.

Contribution Levels

Asked, "Did total contributions to your organization increase, decrease, or stay about the same during the first nine months of this year compared to the first nine months of 2005?" half of more than 3,700 respondents stated that contributions had increased. Another 27 percent said that contributions had stayed the same. Only 19 percent reported that contributions had decreased.

These numbers represent a dramatic change from the results of GuideStar's first nonprofit economic survey, conducted in November 2002. At that time, nearly half (48 percent) of 2,600-plus participants said that contributions during the first 10 months of 2002 had decreased compared to contributions during the first 10 months of 2001:

Change in Contributions

GuideStar Survey	Contributions Decreased	Contributions Stayed about the Same	Contributions Increased	Don't Know
October 2006	19%	27%	50%	4%
October 2005	22%	26%	49%	3%
October 2004	23%	24%	50%	3%
October 2003	35%	22%	39%	4%
November 2002	48%	22%	28%	3%

The results of this year's survey were remarkably similar for all regions of the country and for nonprofits working in all subject areas. Respondents from large nonprofits (annual expenditures of $500,000 or more) were most likely to report increased contributions.

More Demand

Reports of increased demand were even more consistent. Asked, "Did demand for your organization's services increase, decrease, or stay about the same during the first nine months of this year compared to the first nine months of 2005?" 72 percent of participants stated that demand had grown. This is the fourth consecutive year in which at least 70 percent of participants reported increased demand:

Change in Demand

GuideStar Survey	Demand Decreased	Demand Stayed about the Same	Demand Increased	Don't Know
October 2006	4%	23%	72%	2%
October 2005	5%	24%	70%	2%
October 2004	5%	23%	71%	2%
October 2003	6%	22%	70%	2%

Grantmakers

A majority (52 percent) of grantmakers reported that the grants awarded by their organizations increased during the first nine months of the year compared to the first nine months of 2005. These results continue a steady trend upward:

Change in Amounts Awarded

GuideStar Survey	Amounts Awarded Decreased	Amounts Awarded Stayed about the Same	Amounts Awarded Increased	Don't Know
October 2006	14%	32%	52%	3%
October 2005	13%	38%	47%	2%
October 2004	19%	33%	45%	2%
October 2003	32%	35%	32%	2%
November 2002	40%	28%	18%	15%

Some 51 percent of grantmakers reported that applications to their organizations for funding had increased during the first nine months of this year compared to the first nine months of 2005. For three out of the last four years, at least half of grantmakers have reported an increase in the number of grant applications:

Change in Number of Grant Applications

GuideStar Survey	Applications Decreased	Applications Stayed about the Same	Applications Increased	Don't Know
October 2006	7%	37%	51%	5%
October 2005	8%	42%	45%	5%
October 2004	5%	39%	51%	6%
October 2003	9%	36%	50%	6%

About the Survey

GuideStar e-mailed 44,926 messages inviting GuideStar Newsletter subscribers associated with public charities and private foundations to participate in the survey; 3,820, or 8.5 percent, of these individuals took the survey on-line between October 9 and 23, 2006. Some 99 percent of these participants were associated with nonprofit organizations, and at least 1,371 organizations were represented in the survey.

Read the full survey report >

Suzanne E. Coffman, December 2006
© 2006, Philanthropic Research, Inc. (GuideStar)

Suzanne Coffman is GuideStar's director of communications and editor of the Newsletter.