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Forty U.S. Families Take Giving Pledge

Billionaires Pledge Majority of Wealth to Philanthropy

 

SEATTLE – Aug. 4, 2010 – Forty of the wealthiest families and individuals in the United States

have committed to returning the majority of their wealth to charitable causes by taking the

Giving Pledge. The announcement of this first group was made by Warren Buffett approximately

six weeks after kicking off the long-term charitable project with Bill and Melinda Gates.

“We’ve really just started, but already we’ve had a terrific response,” said Warren Buffett, pledge

co-founder and chairman and CEO of Berkshire Hathaway. “At its core, the Giving Pledge is

about asking wealthy families to have important conversations about their wealth and how it will

be used. We’re delighted that so many people are doing just that – and that so many have

decided to not only take this pledge but also to commit to sums far greater than the 50%

minimum level.”

 

Wealthy supporters from throughout the country have come forward to join the pledge, including

the following 40 families and individuals. A full list of those taking the pledge and personal

pledge letters by many of these supporters outlining their commitment to give is available online

at www.givingpledge.org.

 

The Giving Pledge is an effort to help address society’s most pressing problems by inviting the

wealthiest American families and individuals to commit to giving more than half of their wealth to

philanthropy or charitable causes. The pledge is a moral commitment to give, not a legal

contract, and it does not involve pooling money or supporting a particular set of causes or

organizations. While it is specifically focused on billionaires, the idea takes its inspiration from

other efforts that encourage and recognize givers of all financial means and backgrounds.

 

Pledge Signatories

 

California

Eli and Edythe Broad

Michele Chan and Patrick Soon-Shiong

Ann and John Doerr

Larry Ellison

Barron Hilton

Joan and Irwin Jacobs

Lorry I. Lokey

George Lucas

Alfred E. Mann

 

Nebraska

Warren Buffett

Walter Scott, Jr.

 

New York

Michael R. Bloomberg

Barry Diller and Diane von Furstenberg

Elaine and Ken Langone

Ronald O. Perelman

Peter G. Peterson

Tashia and John Morgridge

Bernard and Barbro Osher

Herb and Marion Sandler

Jeff Skoll

Tom Steyer and Kat Taylor

 Julian H. Robertson, Jr.

David Rockefeller

Jim and Marilyn Simons

Sanford and Joan Weill

Shelby White

 

Georgia

Bernie and Billi Marcus

Ted Turner

 

Hawaii

Pierre and Pam Omidyar

 

Washington, D.C. / Maryland

David M. Rubenstein

Vicki and Roger Sant

 

Michigan

Thomas S. Monaghan

 

Missouri

Jim and Virginia Stowers

 

Oklahoma

George B. Kaiser

 

Pennsylvania

Gerry and Marguerite Lenfest

 

Texas

Laura and John Arnold

T. Boone Pickens

 

Utah

Jon and Karen Huntsman

 

Washington

Paul G. Allen

Bill and Melinda Gates

 

Select Pledge Letter Excerpts

 

The following excerpts have been taken from letters written by pledge signatories on their

personal motivation to give. Please visit www.givingpledge.org to view these letters and others

in their entirety.

 

• Laura and John Arnold: “We view our wealth in this light – not as an end in itself, but

as an instrument to effect positive and transformative change.”

 

• Michael R. Bloomberg: “If you want to do something for your children and show how

much you love them, the single best thing – by far – is to support organizations that will

create a better world for them and their children. And by giving, we inspire others to give

of themselves, whether their money or their time.”

 

• Eli and Edythe Broad: “Those who have been blessed with extraordinary wealth have

an opportunity, some would say a responsibility – we consider it a privilege – to give

back to their communities, be they local, national or global.”

 

• Warren Buffett: “Were we to use more than 1% of my claim checks (Berkshire

Hathaway stock certificates) on ourselves, neither our happiness nor our well-being

would be enhanced. In contrast, that remaining 99% can have a huge effect on the

health and welfare of others.”

 

• Bill and Melinda Gates: “We have been blessed with good fortune beyond our wildest

expectations, and we are profoundly grateful. But just as these gifts are great, so we feel

a great responsibility to use them well. That is why we are so pleased to join in making

an explicit commitment to the Giving Pledge.”

 

• Barron Hilton: “It is my hope that others are inspired by my father’s story, and by our

family’s steadfast adherence to his charitable philosophy.”

 

• Jon and Karen Huntsman: “It has been clear to me since my earliest childhood

memories that my reason for being was to help others.”

 

• George B. Kaiser: “I had the advantage of both genetics (winning the “ovarian lottery”)

and upbringing. As I looked around at those who did not have these advantages, it

became clear to me that I had a moral obligation to direct my resources to help right that

balance.”

 

• Gerry and Marguerite Lenfest: “The ultimate achievement in life is how you feel about

yourself. And giving your wealth away to have an impact for good does help with that

feeling."

 

• Lorry I. Lokey: “There’s an old saying about farmers putting back in to the ground via

fertilizer what they take out. So it is with money. The larger the estate, the more

important it is to revitalize the soil.”

 

• George Lucas: “My pledge is to the process; as long as I have the resources at my

disposal, I will seek to raise the bar for future generations of students of all ages. I am

dedicating the majority of my wealth to improving education.”

 

• Tashia and John Morgridge: “The more personally involved we have become with the

causes we support the more effective we seem to be.”

 

• Peter G. Peterson: “As I watched and learned from my father’s example, I noticed how

much pleasure his giving to others gave him. Indeed, today, I get much more pleasure

giving money to what I consider worthwhile causes than making the money in the first

place.”

 

• David Rockefeller: “Our family continues to be united in the belief that those who have

benefitted the most from our nation’s economic system have a special responsibility to

give back to our society in meaningful ways.”

 

• Jeff Skoll: “The world is a vast and complicated place and it needs each of us doing all

we can to ensure a brighter tomorrow for future generations.”

 

• Tom Steyer and Kat Taylor: “Surely the pleasure we derive from St. Francis’ active

verbs of consoling, understanding, loving, giving and pardoning far outweigh any selfish

and passive pleasures of owning, having, or possessing.”

 

• Ted Turner: “I’m particularly thankful for my father’s advice to set goals so high that they

can’t possibly be achieved during a lifetime and to give help where help is needed most.

That inspiration keeps me energized and eager to keep working hard every day on

giving back and making the world a better place for generations to come.”

 

• Sanford and Joan Weill: “Our Pledge is this: We will continue to give away all of the

wealth we have been so fortunate to make except for a very small percentage allocated

to our children and grandchildren between now and the time we pass because we are

firm believers that shrouds don’t have pockets.”

 

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Charity Navigator  -  August 2010

How Do We Measure Accountability and Transparency? What We're Looking For?

We define accountability and transparency in assessing charities as follows: 

 

  • Accountability is an obligation or willingness by a charity to explain its actions to its stakeholders, including government, donors, beneficiaries, and the public at large.
  • Transparency is an obligation or willingness by a charity to publish and make available critical data about the organization, such as its finances, governance and effectiveness.
  • We believe that charities that are accountable and transparent are more likely to act with integrity and learn from their mistakes because they want donors to know that they're trustworthy. Generally speaking, charities that follow best practices in governance, donor relations and related areas are less likely to engage in unethical or irresponsible activities. Therefore, the risk that charities would misuse donations should be lower than for charities that don't adopt such practices.


When examining accountability and transparency, Charity Navigator seeks to answer two basic questions:

  • Does the charity follow ethical best practices?
  • Does the charity make it easy for donors to find critical information about the organization?

What Data We Use

We consider two data sources when examining accountability and transparency:

  • A review of the organization’s website; and
  • Additional information available from the newly expanded IRS Form 990.

 

Please note that, at this time, Charity Navigator isn’t able to make its own independent assessments of the information charities provide to donors. For now, our goal is to let donors know whether charities are making certain kinds of important information readily available to donors. We plan to further enhance our methodology and conduct our own reviews of that information starting in 2011.

Here’s what information we collect from each source:

1. A Review of the Charity’s Website

All information must be easily accessible on the charity's website.

  • Board members listed
  • Key staff listed
  • Audited financials: Audited financial statements reflecting at least the fiscal year represented by the most recently filed IRS Form 990.
  • Form 990: The most recently filed IRS Form 990; a direct link to the charity’s 990 on an external site is sufficient.
  • Privacy Policy: Charity Navigator already monitors and displays this information on each charity’s ratings page. This information will now become part of the accountability/transparency methodology and it will therefore affect a charity’s rating once all charities have been reviewed using the new methodology.
    Privacy policies will be assigned to one of the following categories:
    • Yes: This charity has a written donor privacy policy in place, which states unambiguously that (a) it will not sell, trade or share a donor’s personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share personal information once the donor has given the charity specific permission to do so.
    • Opt-out: The charity has a written privacy policy which enables donors to tell the charity to remove their names and contact information from mailing lists the charity sells, trades or shares. Opt-out requirements vary from one charity to the next, but all require donors to take some action to protect their privacy.
    • No: This charity does not have a written donor privacy policy in place to protect their contributors' personal information.

     

    The policy can either specifically refer to donors, or generally refer to all users of the organization’s website. (The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.)

  • Information about effectiveness and results 
    • Does the charity identify its goals?
      In order to make judgments about how effective charities are, donors need to know what they’re trying to accomplish. Results-driven charities have clear goals and steps that must be taken in order to reach those goals. Charities that don’t identify clear goals are less accountable and transparent to donors and other stakeholders because there aren’t benchmarks for judging the charities’ effectiveness and results.
    • Does the charity explain its strategy for achieving its goals?
      While many charities have lofty and inspiring missions to help others, those that also have well thought out strategies are more likely to succeed in achieving them. Charities should provide donors with easy access to some kind of a descriptive plan that explains the organization’s intended path from its current position to achieving its goals.
    • Does the charity explain its capacity for achieving them?
      The best laid plans won’t produce lasting change unless the charity has the necessary resources to carry them out. Charities can help donors understand whether they have sufficient capacity by (1) identifying the resources they need to accomplish their goals and strategies, (2) providing information about their existing staffing, expertise, facilities, partnerships and funding, and (3) explaining how and when they will acquire additional resources they need.
    • Does the charity explain how it measures progress?
      A charity can’t possibly know what’s working and what isn’t unless it regularly takes stock of its work. Charities need to explain how they measure their performance in implementing their strategies and achieving the goals, as well as the benchmarks and milestones they’ve established for themselves.
    • Does the charity report its progress to date?
      Social change is difficult, and some projects are bound to fall short or take longer than expected. The important thing is that charities carefully track their progress using appropriate performance measurements, and that they honestly explain to donors what they’ve have and haven’t accomplished, and what efforts they are making to improve their performance.

2. Data culled from Form 990

The IRS expanded the Form 990 in 2008 to collect additional information from charities that can accept tax-deductible donations. Several changes were designed to inform the public about potential conflicts of interest, board oversight, executive compensation, and record keeping:  The IRS states that, "by making full and accurate information about its mission, activities, finance, and governance publicly available, a charity encourages transparency and accountability to its constituents.” Charity Navigator collects the following data from the expanded Form 990 to evaluate accountability and transparency:

  • Loan(s) to related parties: Making loans to related parties, such as key officers, staff, or Board members, can call into question a charity's financial integrity.
  • Material diversion of assets: A diversion of assets - any unauthorized conversion or use of the organization’s assets other than for the organization’s authorized purposes, including but not limited to embezzlement or theft, also can seriously call into question a charity's financial integrity.
  • Documents Board meeting minutes: An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference.
  • Provided copy of Form 990 to organization’s governing body: Providing copies of the Form to the governing body in advance of filing is considered a best practice, as it allows for thorough review by the individuals charged with overseeing the organization.
  • Conflict of interest policy: Such a policy protects the organization, and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer or director of the organization.
  • Whistleblower policy: This policy outlines procedures for handling employee complaints, as well as a confidential way for employees to report any financial mismanagement.
  • Records retention policy: Such a policy establishes guidelines for handling, backing up and archiving documents. These guidelines foster good record keeping procedures that promotes data integrity.
  • CEO listed with salary: Charities are required to list their CEO’s name and compensation on the new 990, an issue of concern for many donors.
  • Process for determining CEO compensation: This indicates that the organization has a documented policy that it follows year after year. The policy should indicate an objective and independent review process of the CEO’s compensation with benchmarking against comparable organizations.
  • Compensates Board: It is rare for a charity to compensate individuals serving on its Board of Directors. Although Board compensation is not illegal, it can call into question a nonprofit’s financial integrity.
  • Audited financials prepared by independent accountant: Audited financial statements provide important information about financial accountability and accuracy.
  • Existence of an audit committee: The audit committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings.  

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Paul Allen to Donate Majority of His Wealth to Charity (7/16/10)

In conjunction with the twentieth anniversary of the Paul G. Allen Family Foundation ( http://www.pgafoundations.com/ ), Microsoft co-founder Paul Allen has announced he will leave the majority of his multibillion-dollar estate to charity. The foundation also announced awards totaling $3.9 million to forty-one organizations as part of its first round of grants this year.

Through his family foundation and personal charitable gifts, Allen has donated more than $1 billion to a wide variety of organizations working to help transform lives and strengthen communities, primarily in the Pacific Northwest. "I've planned for many years now that the majority of my estate will be left to philanthropy to con-
tinue the work of the foundation and to fund nonprofit scientific research like the groundbreaking work being done at the Allen Institute for Brain Science," Allen said. "As our philanthropy continues in the years ahead, we will look for new opportunities to make a difference in the lives of future generations."

To mark its twentieth anniversary, the foundation awarded five special grants of $20,000 each to founders of nonprofits in the region it has supported. The recipients are Rachel Bristol, CEO of the Oregon Food Bank; Bridge Cooke, executive director of Adelante Mujeres, a grassroots organization that works to educate
and empower Latina women and their families; Jeanne Harmon, executive director of the Center for Strengthening the Teaching Profession; Myra Platt and Jane Jones of the Book-It Repertory Theatre; and Ken Stuart, president of the Seattle Biomedical Research Institute.

"Since the beginning, our philanthropy has been focused in the Pacific Northwest, where I live and work," Allen said. "I'm proud to have helped fund great work done by nonprofit groups throughout the region. But there's always more to do. There are many challenges, both here in the Northwest and around the world, that I know will keep us looking for ways to help."

For a complete list of grants announced by the foundation, visit the Paul G. Allen Family Foundation Web site.

"Philanthropist Paul G. Allen Celebrates 20th Anniversary of Family Foundation." Paul G. Allen Family Foundation Press Release 7/15/10.

 

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Nearly 40 percent of nonprofit organizations lack adequate staff to deliver their programs and services, a new report from the Johns Hopkins University Listening Post Project finds.

According to the report, Recession Pressures on Nonprofit Jobs ( 17 pages, PDF: http://bit.ly/bXad7r ), almost a third of the 526 organizations surveyed by the project reported making work-force reductions over the preceding six months (October 2009 to March 2010), while only 23 percent reported employment gains over the same period and 46 percent reported no change in head count despite facing greater demand for their services.

In addition to workforce reductions, the survey found that nonprofits have taken other actions that impact staff and their ability to deliver critical programs and services; they include "refining" job descriptions (49 percent), often a euphemism for assigning the responsibilities of laid-off staff to remaining employees; salary freezes (39 percent); waiting to fill new positions (36 percent); increasing staff hours (23 percent); cutting  or reducing benefits (23 percent); increasing non-program work for program staff (12 percent); and wage reductions (12 percent).

The survey also found that employment changes varied significantly by field. For instance, organizations in elderly servicesband community and economic development reported overall employment growth, while theater groups reported job reductions of 6 percent, orchestras 3 percent, museums 1 percent, and children and family service organizations 0.7 percent. Arts and culture organizations have been hit particularly hard by the recession, with 56 percent of nonprofit theaters and 53 percent of museums reporting inadequate staff to maintain their existing activities.

In response to a question about the impact of the recently enacted Federal HIRE Act, which provides exemptions from the employers' portion of payroll taxes (amounting to 6.2 percent of salaries), 15 percent of the respondents agreed that the act would encourage their organization to hire new workers in 2010, while 42 percent doubted that it would encourage their organizations to do so.

"The pressures on nonprofits have accelerated and are clearly taking their toll," said Johns Hopkins Center for Civil Society Studies director Lester Salamon, author of the survey. "Organizations have shown enormous resilience and commitment to their critical missions, but this has come at a price."

"Recession Taking a Toll on Nonprofit Workers and Programs." Johns Hopkins Center for Civil Society Studies Press Release 7/14/10.

 

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June 24, 2010; Source: Bloomberg.com |

 

We know that giving is down generally in the U.S. but where are the 2.87 million millionaires of this country putting their money? According to the findings of The World Wealth Report released this week by Capgemini SA and Merrill Lynch & Co. millionaires are putting more into "tangible assets" in the form of luxury collectibles such as yachts, jets and high-end cars; art; jewelry, gems and watches; other collectibles such as wine and coins; sports investments, including teams and race horses, club memberships, musical instruments and other items.

 

The report was compiled from a survey of 1200 wealth managers serving 150,000 clients across 71 countries. Spending on such “luxury collectible” items  increased from 27 percent in 2008 to 30 percent in 2009.

 

About the charitable behavior of the millionaires in question? According to this study, the charitably minded are looking more to wealth management firms. “It’s not just blanketing several charities and hoping for the best,” said Van der Linde. “They are now looking to wealth management firms for advice on how to make philanthropy part of their investment planning."

 

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Foundation Giving Declined by Record 8.4 Percent in 2009 a study finds.
 

Challenged by a prolonged economic downturn, the nation's grant-making foundations cut their giving by an estimated 8.4 percent in 2009, a new report from the Foundation Center finds. The decline is the steepest since the center began tracking the data in 1975.

Based on a survey of more than 1,200 large and midsize foundations, the 2010 edition of Foundation Growth and Giving Estimates found that grant dollars awarded fell from $46.8 billion in 2008 to $42.9 billion in 2009, and that the decline in giving totaled less than half the 17 percent loss in foundation assets recorded in 2008. The report also found that independent and family foundations, which represent nearly 90 percent of all foundations, reduced their giving by 8.9 percent, to $30.8 billion, in 2009; that corporate foundation giving decreased by 3.3 percent, to $4.4 billion; and that community foundation giving declined by 9.6 percent, to $4.1 billion.

Several factors helped to moderate the overall decline in foundation giving, including the decision of a significant number of funders to reduce their operating expenses and/or tap their endowments to shore up their giving; an increase in giving by the Bill & Melinda Gates Foundation; a continuation of gifts and bequests to new and existing foundations; and the practice of asset-averaging by some foundations, which reduces the impact on giving of year-to-year fluctuations in asset values.

Findings from the survey also suggest that foundation giving will remain flat in 2010 -- a less pessimistic view than respondents held a year ago. And should the economy and stock market continue to rebound, foundation giving may show positive, albeit modest, growth in 2011.

"The economic crisis has not ended for this country's nonprofits, and it will be some time before foundations are in a position tohelp them return to growth," said Foundation Center president Bradford K. Smith. "But funders have made exceptional efforts to lessen the pain faced by the nonprofit community."

"2009 Saw Record Decline in Foundation Giving." Foundation Center Press Release 4/16/10.

 

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2009 Saw Record Decline in Foundation Giving - Foundation Center

 

(April 20, 2010) The recent economic crisis caused the more than 75,000 grantmaking foundations in the United States to cut their 2009 giving by an estimated 8.4 percent--by far the largest decline ever tracked by the Foundation Center. Grant dollars fell from $46.8 billion in 2008 to $42.9 billion in 2009.

 

Several factors helped to moderate the overall decline in 2009 foundation giving. Principal among them were the decision of a significant number of funders to reduce their operating expenses and/or draw upon their endowments to shore up their giving during the crisis; increased giving by the Bill & Melinda Gates Foundation and other grantmakers; continuing gifts and bequests from donors into new and existing foundations; and the practice of asset-averaging by some foundations, which reduces the impact on giving of year-to-year fluctuations in asset values.

 

Other key estimates for 2009 include:

 

  • Independent and family foundations - which represent close to nine out of 10 foundations - reduced their giving 8.9 percent to $30.8 billion in 2009.

  • Corporate foundation giving decreased 3.3 percent to $4.4 billion in 2009.

  • Community foundation giving declined 9.6 percent to $4.1 billion in 2009, exceeding decreases by independent and corporate foundations.

 

Findings from the Foundation Center's annual "Foundation Giving Forecast Survey" suggest that 2010 foundation giving will remain flat - a less pessimistic outlook than respondents anticipated a year ago. Should the economic rebound not derail, foundation giving may show positive, though modest, growth in 2011.

"The economic crisis has not ended for this country's nonprofits, and it will be some time before foundations are in a position to help them return to growth," said Bradford K. Smith, president of the Foundation Center. "But funders have made exceptional efforts to lessen the pain faced by the nonprofit community."

 

About the Foundation Giving Survey

 

Giving projections for 2009 through 2011 reported in Foundation Growth and Giving Estimates are based on responses to the Foundation Center's 2010 "Foundation Giving Forecast Survey" from 1,248 large and mid-size foundations across the country, combined with year-end economic indicators. Final giving figures for 2009 will be available in early 2011.

Foundation Growth and Giving Estimates also presents findings based on actual 2008 giving and assets tracked by the Foundation Center for the more than 75,000 independent, corporate, community, and grantmaking operating foundations in the United States.

 

About the Foundation and Corporate Response to the Economic Crisis

The Foundation Center created a Focus on the Economic Crisis area of its website in 2008 that links to numerous resources to help grantmakers, nonprofits, and the general public understand the impact of the economic downturn on institutional philanthropy. Visit foundationcenter.org/focus/economy to access these resources. 

 

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Gates Foundation Commits $10 Billion to Vaccine-Related Programs

The Bill & Melinda Gates Foundation ( http://www.gatesfoundation.org/) has announced a ten-year, $10 billion commitment to support the research, development, and delivery of vaccines for the world's poorest countries.

Announced at the annual meeting of the World Economic Forum in Davos, Switzerland, the commitment will fund a range of vaccine-related activities, from basic research to innovations in delivery. Using a model developed by a consortium led by the Institute for International Programs at the Johns Hopkins Bloomberg School of Public Health, the foundation projects that scaling up the delivery of life-saving vaccines for the world's children by 10 percent could prevent the deaths of some 7.6 million children under the age of five between 2010 and 2019. If a malaria vaccineis introduced by 2014, that number could reach 8.7 million, with
even more lives saved if vaccines for diseases such as tubercu-
losis are developed and introduced in the coming decade.

Although the commitment is believed to be the largest pledge ever made by a grantmaker to a single cause, the Gates Foundation pointed out that billions more dollars will be needed from other funding sources -- foundations, governments, and the private sector -- to achieve the ambitious goal of vaccinating 90 percent
of the world's children. Critical funding gaps exist in global polio and measles vaccination programs and at the GAVI Alliance, which was created ten years ago at Davos with $750 million from the Gates Foundation. In addition, more support is needed for the research and development necessary to produce new vaccines;
the introduction of vaccines for pneumonia, severe diarrhea, and other diseases; and efforts to ensure a steady market for -- and an adequate supply of -- vaccines in developing countries.

The Gateses said their pledge was inspired by progress made in the area of vaccines in recent years. Global vaccination rates have reached an all-time high, rebounding from years of decline in the 1990s, according to the World Health Organization, while new vaccines for the two leading causes of global child deaths
-- severe diarrhea and pneumonia -- are becoming available. To date, GAVI has reached 257 million children with new and under-used vaccines, preventing five million future deaths.

Before this most recent pledge, the Gates Foundation had already committed $4.5 billion to vaccine research, development, and delivery, making vaccines the highest-funded cause at the foundation, the New York Times reports. The foundation will not divert money from other projects to fund the new commitment; instead,
Bill Gates and Warren Buffett will increase their annual gifts to the foundation, with the share of the foundation's overall spending that goes toward vaccines increasing from 20 percent to 30 percent.

"We must make this the decade of vaccines," said Gates. "Vaccines already save and improve millions of lives in developing countries. Innovation will make it possible to save more children than ever before."

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An Overview of the Nonprofit and Charitable Sector

Charitable organizations are estimated to employ more than 7% of the U.S. workforce, while the broader nonprofit sector is estimated to employ 10% of the U.S. workforce. In 2009, the charities filing Form 990 with the Internal Revenue Service reported approximately $1.4 billion in revenue and reported holding nearly $2.6 billion in assets. Nonprofit institutions serving households (largely charities) constituted more than 5% of GDP in 2008. You can learn more from the 65 page report at:  http://www.fas.org/sgp/crs/misc/R40919.pdf