Page 25 - ARUBA TODAY

BUSINESS Wednesday 19 June 2019
A25

Charitable giving by individual Americans drops in 2018

By DAVID CRARY sectors identified by Giv-
Associated Press ing USA, there were mixed
NEW YORK (AP) — Chari- results. Donations were up
table giving by individual for nonprofits involved in
Americans in 2018 suffered international affairs and
its biggest drop since the environmental or animal-
Great Recession of 2008- welfare issues. Giving to
09, in part because of Re- foundations was down, as
publican-backed changes was giving to education, to
in tax policy, according to religion and to public-soci-
the latest comprehensive ety benefit organizations —
report on Americans’ giv- groups which work on such
ing patterns. issues as voter education,
The Giving USA report, re- civil rights, civil liberties and
leased Tuesday, said indi- consumer rights.
vidual giving fell by 1.1%, Giving to religion — pe-
from $295 billion in 2017 rennially the biggest sec-
to $292 billion last year. It tor — is estimated to have
ended a four-year streak declined by 1.5% in 2018 (a
of increases, and was the decrease of 3.9% adjusted
largest decline since a 6.1% for inflation), with a total of
drop in 2009. $124.52 billion in contribu-
Experts involved with the re- tions. Una Osili, an associ-
port said 2018 was a com- In this Sept. 6, 2018 file photo, Campaign Chair Larry Silbermann announces a goal of $8,133,333 ate dean at the Lilly philan-
plex year for charitable giv- at the United Way of the Coastal Empire 2018 Campaign Kick-Off at the Civic Center in Savannah, thropy school, said giving
ing, with a relatively strong Ga. to religious institutions has
economy overall and a Associated Press been lagging behind other
volatile stock market. Giv- charitable giving. Stacy Palmer, editor of the among the nonprofits rely- sectors for several years.
ing by corporations and “Whenever there’s a ma- Chronicle of Philanthropy, ing on middle-class donors. Reasons including declin-
foundations increased, so jor tax policy change like a magazine that covers the About 90% of its donations ing attendance at church
that total giving — includ- that, it has an effect.” said nonprofit world, suggested come through workplace- services and a rising num-
ing donations from indi- Rick Dunham, chair of Giv- that the changes would based campaigns, ac- ber of Americans not af-
viduals — edged up by 0.7 ing USA Foundation, which have relatively less impact cording to its chief market- filiated with any particular
percent to $427.7 billion. publishes the annual re- on charities that rely on ing officer, Lisa Bowman. religion. For the largest U.S.
Among various factors af- port. It is researched and wealthy donors, and great- Bowman said United Way denomination — the Ro-
fecting charitable giving written by the Indiana Uni- er impact on social-service won’t know until later this man Catholic Church — a
was a federal tax policy versity Lilly Family School of providers and other chari- year how it fared for its long-running clergy sex-
change that doubled the Philanthropy. ties that get broad support 2018-19 fiscal year, but abuse crisis also has taken
standard deduction. More Dunham and other experts from middle-class Ameri- she noted that tradition- a financial toll. According
than 45 million households said it will likely take anoth- cans. al nonprofits face many to a recent Pew Research
itemized deductions in er year of analysis, with the “Charities who depend on new challenges, includ- Center survey, about one-
2016, according to Giving help of additional data, to them are really worried,” ing competition from on- fourth of U.S. Catholics
USA, and that number likely reach a more precise esti- said Palmer. line crowdfunding opera- have decreased donations
dropped sharply in 2018, mate of the tax change’s United Way, the largest tra- tions such as GoFundMe. to the church because of
reducing an incentive for impact. ditional charity in the U.S., is Among the nine charitable the scandals. q

Interest rates are down, so is it time to refinance?

By SARAH SKIDMORE SELL have already refinanced completing loans for the
Associated Press once already. If you are spring home-buying sea-
Interest rates for mortgages considering another round, son, so make sure your lock-
are low __ really low. remember that unless you in period allows enough
As of the first week of June, move into a shorter-term time to complete the pro-
long-term mortgage rates loan, you are essentially cess, around 45 to 60 days.
were down for the sixth starting the clock anew COSTS
consecutive week. The 30- on paying off your home, Refinancing comes with
year fixed rate average warns Sarah Mikhitarian, a some expenses, typically
was below 4 percent, its senior economist at Zillow. between $2,000 and $3,000
lowest point since Septem- This April 13, 2019, file photo, shows homes in suburban Salt Lake However, she notes that in various closing costs. You
ber 2017. If you’re a hom- City. people who bought in the can pay those out of pock-
eowner, you may be won- Associated Press past year or two when rates et or have them rolled into
dering if now’s the time to Others want to lower their And some may want to started to climb may want the balance of the new
refinance. monthly payment. Some cash out some equity from to run the numbers on refi- loan.
Here’s what to consider: desire a better product, their homes. nancing. Some banks may waive
REASON such as getting out of an Before you agree to refi- “These rates and this mo- the cost of the fees in ex-
It’s important to know why adjustable rate mortgage nance, make sure it meets ment are fleeting and un- change for a slightly higher
you want to refinance. into a fixed loan. that goal. predictable,” said Rick rate on the loan itself.
Some people simply want Others may have seen their RATES Bechtel, head of US Resi- You may face added costs
to take advantage of lower financial situation improve Yes, rates are low but they dential Lending at TD Bank. for certain state taxes that
rates so they pay less over since they bought their were very low in the years Bechtel said that lend- might not be factored into
the course of their loan or home and now qualify for following the recession too. ers are busy with both an all mortgage calculators ei-
to pay it off faster. better terms. So some homeowners may uptick in refinancing and ther, Bechtel noted.q