Economic Fallout Will Cost U.S. Charities as Much as $900 Million Through 2011, According to PhilanthroDEX Data
The current gulf coast oil spill will have a profound impact on charitable giving until at least 2012, according to data from PhilanthroDEX™, an online U.S. charitable giving index and forecasting product.
The loss of charitable gifts is forecast to be $200 to $300 million in 2010 and as much as $600 million in 2011. However, the total effect on giving will depend on the number of states directly impacted by the oil spillage and its subsequent ripple effect on the U.S. economy.
"Louisiana, Mississippi, Alabama, and Florida are just beginning to feel the economic effects of the spill including revenue and job loss," said Rob Mitchell, CEO of Philanthromax, the company launching PhilanthroDEX, and the former President of the American Cancer Society Foundation.
"Within the next few months, the oil spill will likely impact additional states, such as Texas and the lower Atlantic seaboard," Mitchell continued. "Charities that derive a significant portion of their philanthropic revenue from these areas will be adversely impacted now and for the foreseeable future," Mitchell said.
According to PhilanthroDEX data, the impact of the oil spill will begin to erode a measured 9.2% rise in charitable giving for the first five months of 2010. Nonprofits in the U.S. received charitable contributions of $133.82 billion between January and May 2010, an increase of 9.2 percent over the same period in 2009.
PhilanthroDEX measures contributions from U.S. individuals, corporations, and foundations through an algorithmic model that calculates variables including:
- Macroeconomic factors
- Demographic factors
- Financial market factors
- National and world events such as the BP oil spill
PhilanthroDEXTM (pat. pending) is a membership-based product combining an accurate report of monthly, quarterly, and annual aggregate charitable giving with a reliable forecast of future charitable giving for the next twelve months. Each month, an aggregate calculation provides giving results for the preceding month and forecasts charitable giving for the coming year using a rolling forecast.
PhilanthroDEX was created by a team of 25 PhD mathematicians, analysts, and statisticians who evaluated more than 50 possible variables to create the PhilanthroDEX charitable giving measurement algorithm. They then compared those calculations with published annual giving data going back to 1968. The charitable giving algorithm correlates to 41 years of giving history by 99.5 percent.
"For the first time, the nonprofit sector has access to real-time accurate historical and forecast information on giving in the United States," Mitchell said. "This will be vital information for any organization that relies on charitable giving for a significant portion of its income."
For more information, visit www.philanthromax.com.
PhilanthroDEXTM (pat. pending) is a membership-based product combining an accurate charitable giving forecast with a report of monthly, quarterly, and annual aggregate charitable giving. Each month it provides real-time reports that take the guesswork out of budgeting and monitoring performance. PhilanthroDEX supplies current data and forecasts that are vital to the effective and efficient operation of any organization that relies on charitable giving for its success.
Philanthromax LLC designs and provides innovative technology and business solutions that maximize the revenue, reputation, and effectiveness of America's nonprofits. Philanthromax delivers one-of-a-kind solutions that provide organizations with effective, accountable, and successful fundraising and giving outcomes. For more information, visit http://www.philanthromax.com/.
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Product inquiries:
Philanthromax
Hank Zachry, 1-877-414-0078
hank@philanthromax.com
or
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Paul Maynard,
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