Philanthropy to Developing Nations Totaled $64 Billion in 2014

Global private philanthropy to developing nations totaled a record $64 billion in 2104, a report from the Hudson Institute's Center for Global Prosperity finds.

Based on an examination of private giving to the developing world from twenty-eight members of the Organization for Economic Cooperation and Development's Development Assistance Committee (DAC) and eleven non-DAC emerging economies, the 2016 edition of The Index of Global Philanthropy and Remittances (48 pages, PDF) found that global philanthropy hit a record $64 billion in 2014, with the United States contributing two-thirds of the total ($44 billion), followed by the United Kingdom ($4.9 billion), Japan ($4.5 billion), Germany ($1.9 billion), and Canada ($1.7 billion). In addition, the report found that financial flows from philanthropy, private capital investments, and remittances from the thirty-nine countries totaled $801 billion, while government aid totaled $147 billion. According to the study, a number of non-DAC countries, including South Africa, India, Turkey, and China, saw increased philanthropic flows, private capital investment, and remittances to developing countries in 2014.

The study also found that remittances from the U.S. totaled $109 billion in 2014, exceeding philanthropy and government aid combined, while official U.S. development assistance totaled $33 billion and private capital investment flows from the U.S. made a dramatic recovery, increasing from $108 to $179 billion over three years.

The report highlights a number of trends in global philanthropy, including the continued growth of crowdsourcing and other forms of online giving; the tendency of young high-net-worth individuals to start giving away their wealth at an earlier age, resulting in increased lifetime giving; and, as the middle class continues to expand around the world, the rise in indigenous philanthropy in low- and middle-income countries.

"Our latest research shows that philanthropy and remittances continue to thrive and are important lifelines to the world's poorest people," said report author Carol Adelman. "This is true despite the increase in government crackdowns on nonprofits that threaten private giving and civil society in general."