Fueled by the stock market's continuing boom, charitable giving in the U.S. grew 10.7 percent in 1998 to $174.52 billion.

Total giving represented 2.1 percent of gross domestic product, according to Giving USA 1999, the annual report by the AAFRC Trust for Philanthropy.

Last year was the third straight year in which charitable giving grew by 10 percent or more. Giving increased 11.8 percent in 1996 and 13.7 percent in 1997.

The last time giving exceeded 2 percent of GDP was 1971, says the report, which revises its estimate of 1997 giving to $157.69 billion.

Individuals accounted for the biggest chunk of total giving, 77.3 percent. Their giving grew 9.7 percent to $134.84 billion.

Foundations - not including corporate foundations - generated the biggest growth in giving, 22.9 percent. Their giving totaled $17.09 billion and accounted for 9.8 percent of total giving.

Religious congregations and denominations received the biggest share of total giving, 43.6 percent. Religious giving grew 4.6 percent to $76.06 billion.

In a prepared statement, Nancy L. Raybin, chair of the AAFRC Trust for Philanthropy, said that nonprofit organizations should strike a balance between raising money from individuals and foundations.

"While the current increase in foundation giving may tempt nonprofits to continually shift their development eggs into the institutional basket, individuals represent the greatest potential for increased giving," she said. "Individuals have more capacity to give than foundations do, and their capacity has not yet been unleashed at its highest possible level."

She also urged fundraising consultants and others working to support the sector to "understand and help institutions understand that personal giving remains the most potent force for charities to tap into. This is true for mainstream charities and those that are just beginning to build a future for themselves."

The report also found:

• Giving by bequest grew 7.8 percent to $13.62 billion and accounted for 7.8 percent of total giving.
• Giving by corporations and corporate foundations grew 9.3 percent to $8.97 billion and accounted for 5.1 percent of total giving. Corporate giving represented 1 percent of corporate pre-tax-income in 1998, compared to 1.5 percent in 1988.
• Charities reported $4.79 billion as gifts or grants received, although that money was not estimated to have been contributed by individuals, bequests, foundations or corporations. Much of it consisted of payments made by charities to each other, such as the United Way or the Second Harvest food bank network.
• Giving to education grew 10.8 percent to $24.56 billion and accounted for 14.1 percent of allocated giving.
• Giving to health organizations grew 20.4 percent to $16.89 billion and accounted for 9.7 percent of allocated giving.
• Giving to human service organizations grew 27 percent to $16.08 billion and accounted for 9.2 percent of allocated giving.
• Giving to arts, culture and humanities organizations fell 0.8 percent to $10.53 billion and accounted for 6 percent of allocated giving.
• Giving to public/society benefit organizations grew 29.5 percent to $10.86 billion and accounted for 6.2 percent of allocated giving.
• Giving to environment and wildlife organizations grew 28.3 percent to 45.25 billion and accounted for 3 percent of allocated giving.
• Giving to international affairs grew 9.3 percent to $2.14 billion and accounted for 1.2 percent of allocated giving.