Challenges in Charitable Giving
Are we becoming less generous as a nation? Unfortunately, the response is affirmative, and this trend can be attributed to economic conditions and changing societal norms.
Recent data shows a decrease in the number of households contributing to charitable causes, with about 20 million fewer households donating compared to two decades ago. A study by Indiana University Lilly Family School of Philanthropy and Vanguard Charitable revealed a noticeable drop in the percentage of US adults giving to charities between 2000 and 2016. In 2000, 66% of American adults made charitable donations, a number that decreased to 53% by 2016.
Multiple factors contribute to the decline in charitable giving. Notably, there has been a decrease in religious affiliation among Americans, leading to fewer donations to religious organizations. Despite this, religious entities still received the largest share of charitable contributions in 2018, at 29%.
Another significant contributor to the downturn in charitable donations is the uneven recovery from the Great Recession. The study shows that households with individuals holding less than a high school education and total assets below $50,000 cut their charitable giving post-recession. Additionally, millennials are notably less inclined to donate money due to having faced a challenging job market during the economic downturn characterized by the 2008 recession.
