Americans generally have a positive view of charitable giving, but at the same time are largely in the dark about it and have concerns, according to a new survey from Indiana University’s Lilly Family School of Philanthropy.
The research released Thursday is based on a survey of more than 1,300 adults conducted in summer 2022. It was designed to illuminate people’s attitudes and beliefs about philanthropy and nonprofits.
“A major takeaway of the study is that when it comes to trust, philanthropy continues to be a bright spot,” says Una Osili, associate dean for research and international programs at the Lilly Family School of Philanthropy.
Although people appear to have confidence in philanthropy compared to the government or private sector institutions, the research highlights the need for more understanding and transparency in the realm of giving.
“The challenge is that how philanthropy works is not very well understood,” Osili says. “That’s significant because almost every area of our lives are touched by nonprofits—from disaster relief to health care and education to the arts.”
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Despite the fact that so many Americans interact with—and many work for—nonprofits, only 5.4% of those surveyed said they or anyone in their immediate family was helped by a charitable organization or nonprofit in the past year.
“Wealthier households tended to be the ones that were more knowledgeable about how the philanthropic sector works,” Osili says. About 50% of those surveyed expressed awareness of donor-advised funds.
A significant finding of the study is that in general Americans define philanthropy as the giving of time and/or money to nonprofit organizations. “Younger people have a different view,” she says, adding that it tends to be “more expansive.”
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When asked how much they trust nonprofits to do the right thing, 39% of respondents expressed total confidence in these organizations, the highest response for any societal institution in the survey.
An area of concern the study revealed is related to how information is shared. Less than 12% regarded private foundations, corporations, and high-net-worth individual donors as very or completely transparent in their giving practices.
Just one in three people were aware that the percentage of Americans giving to charities declined significantly in the past two decades.
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Half expressed no opinion about whether a universal charitable deduction—like the kind Americans could take on their taxes in 2020 and 2021 because of the CARES Act—should be made permanent.
“This study helps us better understand public views, which in turn can bolster the efforts of nonprofits and the sector’s leaders to help build greater levels of knowledge and trust that are vital to sustaining philanthropy with mutual benefit to donors and recipients alike, Osili says.
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