Every year, the Giving USA report provides a comprehensive analysis of philanthropy in the United States. This report is a valuable resource for charities, nonprofit organizations, and fundraisers, as it offers insights into donor behavior, giving trends, and the overall state of charitable giving. Understanding the key findings from the Giving USA report can help charities make informed decisions to enhance their fundraising efforts and better serve their missions. Here are our top five takeaways for public charities.
How the Economic Climate Impacted Giving
There has been a noticeable decrease in charitable giving in the United States and other parts of the world. In 2022, Americans gave $499.33 billion which signified a 3.4 percent decline between 2021 and 2022 in current dollars, and 10.5 percent when considering inflation. Though declines in giving are rare, factors such as the economy and world crisis can cause them. We experienced the COVID-19 pandemic which resulted in global crisis, unemployment, and additional hardships. Additionally, in 2022 people experienced rising costs and the subsequent declines in disposable income. With factors like the global health crisis and inflation, giving may be impacted.
Leading Sources and Demographics of Givers
Individuals were responsible for 64% of giving in 2022. Individuals were followed by foundations (21%) and bequests (9%). The number of millennial donors increased while giving from Gen X and Boomers declined. Despite declines in Boomer giving, they were the generation that gave the most. Understanding the demographics of givers is important because it allows you to have targeted fundraising campaigns and a more personal appeal.
Technology and Giving
Technology is ever evolving and so is the way people are able to give. In 2022, there was an increased interest in cryptocurrency and new ways to give. According to Forbes, nearly half of the charities highlighted in their America’s Top Charities of 2022 report accepted cryptocurrency for giving. Beyond the rising popularity of cryptocurrency, people utilized platforms such as mobile sites and Facebook to give online. The future generations of giving will likely utilize technology to do their giving. Adding ways to give electronically could open pathways to innovative and convenient giving.
Giving to Religion
In 2022, nearly one-third of charitable distributions were given to religious organizations. This was followed by human services, and education. The increases in giving to religious organizations could be attributed to the shift to address issues related to social justice. During the pandemic people were not only drawn together by the global health crisis, but also through the collective shift to combat injustice. Congregations of all faiths rallied together to raise money for causes ranging to addressing racism to helping alleviate medial debts.
Moving Forward
The annual Giving USA report is a vital tool in understanding trends in giving. While there will always be fluctuations in giving and the demographics of those who give, one thing remains the same – giving does not stop. Understanding giving trends provides organizations with the knowledge needed to appeal to a full audience and stay abreast of issues that impact giving.