Page 11 - aruba-today-20220622

A11
business Wednesday 22 June 2022
U.S. charitable giving hit record in 2021 but inflation looms

By THALIA BEATY and in eight of the nine major
GLENN GAMBOA philanthropic sectors, with
Associated Press only education declining.
Charitable giving in the “The growth that we see for
United States reached a the majority of the subsec-
record $485 billion in 2021, tors in 2021 is a reminder of
though the increase did the resilience and innova-
not keep pace with infla- tion that help to drive the
tion, according to a report philanthropic sector,” said
Tuesday offering a com- Una Osili, associate dean
prehensive look at Ameri- for research and interna-
can philanthropy. tional programs at the Lilly
The Giving USA report says Family School of Philanthro-
donations in 2021 were 4% py.
higher than the record- Giving to what the report
setting $466 billion contrib- categorizes as public ben-
uted in 2020. But they were efit organizations, includ-
down 0.7% when adjusted ing civil rights and voting
for inflation. groups as well as donor ad-
Many nonprofits are now vised funds, jumped 23.5%
feeling the strain because in 2021 from the previous
giving is not growing as year.
fast as price increases, said “Many of those organi-
Laura MacDonald, chair of A man walks past a portion of the archive wall at the Bob Dylan Center, Thursday, May 5, 2022, in zations like the civil rights
the Giving USA Foundation. Tulsa, Okla. Associated Press groups gained a lot of vis-
In response to the intense ibility and momentum dur-
needs of the early COV- still not near the peak of or family foundations and by the Giving USA Founda- ing 2020 following the kill-
ID-19 pandemic, as well as 2017 when individuals do- those donations would be tion. ing of George Floyd, and
the calls for racial justice, nated about $335 billion counted in other catego- “Robust economic growth many of the new events
giving increased in unusual when adjusted for inflation. ries. translated to strong per- that happened in 2021, like
ways in 2020, but has gen- Experts say those totals Giving to arts and culture formance by institutional the Stop Asian Hate Move-
erally returned to previous contradict proponents of groups, which suffered dur- forms of philanthropy such ment, those also garnered
patterns. the Tax Cuts and Job Acts, ing the pandemic, climbed as foundations and corpo- a lot of support,” Osili said.
“In 2021, many donors re- which passed in 2017, who 27.5% in 2021 to more than rations.” The report draws on multi-
turned to their favored claimed the legislation $23.5 billion. Conversely, Corporate giving also ple data sets, including tax
causes, with many of the would increase giving. giving to education de- raised questions. Though it information, but does not
sectors that struggled in “Everyday households are clined 2.8% to $71 billion. increased 23.8% to $21 bil- capture person to person
2020 making a recovery in not participating in chari- It had spiked in 2020 in part lion in 2021, that was during giving through crowdfund-
2021,” MacDonald said in a table giving to the extent because of donations re- a banner year for corpo- ing campaigns or mutual
statement. that they did a decade or lated to vaccines which rate profits, which were up aid groups, though it does
The proportion of giving by two ago,” MacDonald said went to university affiliated 37% before taxes. reflect crowdsourced gifts
individuals totaled less than in an interview. “And that’s hospitals and research. The report says corporate to nonprofits.
70% of overall giving for the concerning. That’s trou- “The environment for giving giving still represents less Previous research by the Lil-
fourth year in a row in 2021 bling.” is evolving in multiple ways,” than 1% of corporate pre- ly Family School found that
and the report found that She noted some large do- said Amir Pasic,dean of In- tax profits. person to person giving is
giving from individuals was nors have transitioned to diana University’s Lilly Fam- However, the report finds not yet replacing donations
essentially flat in 2021 when giving through donor-ad- ily School of Philanthropy, that donations are gener- to charitable organizations,
accounting for inflation, up vised funds, a type of chari- which researched and ally strong. Osili said, but rather is in ad-
4.9% to $327 billion. That’s table investment account, wrote the report published Giving grew or stayed flat dition to those gifts.q

Luxury market seen as growing in 2022

despite inflation, war

MILAN (AP) — Neither infla- grew by nearly one-third to vasion of Ukraine, Bain said.
tion nor the war in Ukraine 288 billion euros ($198 bil- In its most pessimistic out-
are threatening to take a lion) last year, rebounding look, assuming global infla-
bite out of the luxury fash- from its worst recorded dip tionary pressure, Bain fore-
ion market, according to a due to the 2020 pandemic casts growth in the sales of
study published Tuesday. lockdowns, according to high-end personal goods
While much of the world the study commissioned by this year to grow by 5% to
is fretting over higher fuel Italy’s Altagamma associa- around 305 billion euros.
and energy prices, the tion of high-end producers. But the consultancy also
study by Bain & Compa- Sales of personal luxury sees a case for up to 15%
ny consultancy indicated goods including apparel, growth if the current trends A model wears a creation as part of the Moschino men’s Spring
that the global luxury mar- accessories and footwear continue, pushing the mar- Summer 2023 collection presented in Milan, Italy, Sunday, June
ket remains set for growth, posted high double-digit ket to 330 billion euros next 19, 2022.
largely due to the contin- growth in the first quarter year. Associated Press
ued resiliency of the world’s of this year, despite the first The United States and Eu-
wealthiest people. signs of economic uncer- rope have boosted growth are expected to hit a hard VID-19 restrictions in key
The global luxury market tainty tied to the Russian in- so far this year, while sales stop in China due to CO- cities.q