Nonprofits in the United States are spending roughly $8 billion and $9 billion annually on programs and activities relating to climate change, according to researchers at the Indiana University Lilly Family School of Philanthropy in Indianapolis.
Mapping Nonprofit Spending on Climate Change is the title of the new 29-page report, which was prepared from a survey last year of leaders of 130 U.S.-based nonprofits working wholly or in part on climate-related issues. Funding and input for the study were provided by the ClimateWorks Foundation of San Francisco.
The majority (88%) of support for climate change activities was from philanthropic giving with the balance emanating from government sources (7%) and fees for services (5%), according to the report’s authors. Institutional giving by foundations and corporations was nearly half (47%) of philanthropic support for climate-related causes with individual gifts constituting about 40%. This is in contrast to social causes, which receive only about 27% of philanthropic support from institutions and a much greater (64%) share of their support from individuals. Additionally, only about 2% of total philanthropic giving is currently devoted to climate change, according to the authors.
Estimates in the report also showed more spending going toward climate mitigation strategies (49%) than to climate adaptation (14%). The two main approaches for addressing climate change differ in emphasis, with climate mitigation focused primarily on limiting carbon emissions and climate adaptation focused more on construction, agriculture, flood prevention and other techniques designed to accommodate climate-induced change to the environment. The balance of spending could not be pinpointed due to not falling neatly under either approach or being regranted to other organizations with a broader focus.
“This unique research comes at a time when recognition is growing that climate action must be accelerated to address the gravity of the climate crisis,” said Una Osili, associate dean for research and international programs at the Lilly Family School of Philanthropy. “The findings from this report will equip nonprofit organizations with data to support fundraising for key climate priorities, and it uncovers gaps and opportunities for funders to increase their investment in key areas.”
Other key findings in the report include:
- Slightly more than half (54%) of climate change spending by U.S. nonprofits is concentrated on climate-related efforts in the United States and Canada.
- Slightly less than a fourth (22%) of climate change spending by U.S. nonprofits is being directed to other regions of the world, with 14% going to global-level issues. The balance was not linked to any specific region or could not be identified.
- The largest portion (67%) of climate change spending is focused on energy, with roughly equal portions being directed to promoting greener energy use (35%) and promoting greener energy supply (32%). Approximately one quarter (23%) was focused on better land use.
Policy-based approaches remain the preferred tactic for addressing climate issues, receiving 30% of total climate expenditures. Climate justice and equity approaches received the second greatest share (21%) of expenditures.The top priorities cited by respondents for accelerating action on climate change were “movement building and mobilization” and “making transportation greener” via increased use of electric vehicles, public transportation, bicycling and walking. Specific percentages of respondents citing each of these priorities were not given, however. More unrestricted funding was also cited as a need by many respondents, who said moving away from restrictive or program-specific grants would improve their ability to address climate issues in a timely manner.
