Philanthropic giving in the US declined significantly in 2022 and was the first dip recorded since 2009, at the height of the last global financial crisis.
A report compiled by Giving USA shows that total giving for last year declined by 3.4 per cent in current dollars (or 10.5 per cent after adjusting for inflation) to a total of $499 billion—down from $517 billion in 2021.
Giving had been especially strong in 2020 and 2021 as donors rallied to help address increasing needs amid the Covid pandemic, an economic crisis, and supported efforts to advance racial justice.
The authors of the report, from Indiana University’s Lilly Family School of Philanthropy, say the findings are not entirely surprising.
“Drops in the stock market and high inflation caused many households to make tough decisions about their charitable giving for the year,” said Josh Birkholz, Chair of Giving USA Foundation and CEO of philanthropy consultancy firm BWF.
“But despite uncertain economic times, Americans demonstrated how essential they view the nonprofit sector and its ability to solve big problems—by still giving nearly half a trillion dollars in 2022,” he added.
A detailed breakdown shows that, by in large, four types of giving fell in real terms:
Giving by individuals totalled an estimated $319.04 billion, declining 6.4 per cent in 2022 (a decline of 13.4 per cent, adjusted for inflation).
The amount foundations gave grew by 2.5 per cent, to an estimated $105.21 billion in 2022 (a decline of 5.0 per cent, adjusted for inflation).
Giving by bequest totalled an estimated $45.60 billion in 2022, growing by 2.3 per cent over 2021 (a decline of 5.3 per cent, when adjusted for inflation).
Giving by corporations is estimated to have increased by 3.4 per cent in 2022, totalling $29.48 billion (a decline of 4.2 percent, adjusted for inflation).
Corporate giving includes cash and in-kind contributions made through corporate giving programmes, as well as grants and gifts made by corporate foundations.
Shafi Musaddique is news editor at Alliance magazine.
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