Charitable giving to education declined to $31.64 billion in 2002, an estimated 1.1 percent reduction and the first annual decrease since consecutive drops in 1974 and 1975, according to the annual "Giving USA" report, which is being released today.

Adjusted for inflation, total giving to education in 2002 was 2.6 percent smaller than in 2001, the second straight year of inflation-adjusted declines.

In the mid-1970s, when double-digit inflation was rampant, adjusted-giving totals for education fell three straight years, from 1973 through 1975.

Several factors contributed to the current decline, according to Eugene R. Temple, executive director of Indiana University's Center on Philanthropy, an Indianapolis institution that produces the report on behalf of the AAFRC Trust for Philanthropy, part of the American Association of Fundraising Counsel.

The primary culprits are three years of declining stock values, conflicts abroad, recovery from the terrorist attacks of 2001, and a raft of corporate woes, including huge bankruptcies and many allegations of criminal conduct, he said.

"There are no historical precedents," said Mr. Temple in a written statement.

Over all, Americans gave an estimated $240.9-billion to charity in 2002, a slight annual increase in total dollars, but an inflation-adjusted decline of less than 1 percent.

Educational institutions received about 13 percent of those charitable gifts. Only religious organizations took in a larger share, about 35 percent of the total.

Foundations' endowments, a critical source of giving to education, have been decimated by poorly performing capital markets. Total foundation grants to all types of recipients declined to $26.9-billion in 2002, an inflation-adjusted drop of 2.7 percent.

Giving by individual donors declined less than 1 percent.

"We've seen giving buoyed in part by gifts of cash, real estate, and tangible property other than corporate securities," said Leo P. Arnoult, chairman of the AAFRC Trust.

The report will go on sale in July. Ordering information is available at (888) 5-GIVING and the "Giving USA" Web site.