Economic Effects on Million Dollar Giving

This study investigates the impact of economic conditions on the number of charitable gifts of 1 million dollars or more within the United States using the Million Dollar List (MDL) data set. We investigate key donor types-individuals, corporations, and foundations-using quarterly data. Results indicate that individual donors are significantly responsive to underlying economic conditions, foundation giving tends to be countercyclical, and corporate giving is less closely linked with aggregate macroeconomic conditions. We also find that economic conditions vary in their influence on million dollar giving to subsectors, and gifts to public benefit and human services organizations increase significantly during periods of recession, holding other factors constant. In contrast, million dollar giving to arts and education organizations is significantly associated with favorable economic conditions, holding other factors constant. Findings have direct implications for philanthropists, fundraisers, and policy makers as they seek to understand how economic conditions affect large gifts.