Are we giving more, or are we giving up?
The answer to this question has become increasingly difficult as each day’s news is made immediately obsolete by the next. Some reports suggest people in the United States are giving generously to counter the myriad of crises we’ve faced in 2020, while others say we’re not giving enough.
So, what’s the story? And what should we be doing?
First, a baseline. In June, Giving USA released its report on 2019 charitable giving. The report showed that people gave $450 billion to nonprofit groups last year, a sum bested only in 2017. Individuals, foundations, and corporations all increased contributions, resulting in a 2.4% rise in giving after inflation-adjusted dollars.
However, as we’re already halfway through 2020, it’s still unclear if we’ll see similar results by the end of this year. Although the unforeseen economic challenges of the current pandemic affect the ability of many to act on their desire to be generous, the philanthropic sector is well equipped to weather this storm — and we all have a role to play.
The Association of Fundraising Professionals reported the month of March alone saw an 11% drop in charitable giving.
Although the stock market rally helps, it will be some time before we know if this trend line will continue throughout the second half of the year. The health of the economy is one of the most crucial factors driving philanthropy, but March’s significant drop will still leave a substantial sting.
A survey done by Quickbooks showed 34% of respondents were giving less than they did a year ago. Additionally, a LendingTree survey of adults in mid-June indicated 5% reduced giving this year, and 15% of those surveyed paused giving altogether.
Despite these troubling signs, the news isn’t all bad.
The same LendingTree survey reported that more than 70% of people had not changed their giving behavior or indeed were giving more. It also shared information on forms of charitable giving that usually get overlooked in measures of philanthropy because they aren’t tax-deductible:
Sending money to a loved one who was laid off (12%)
Purchasing gift cards from a local business (7 %)
“Plus, some consumers (30%) continue to pay for services they can’t use due to social distancing guidelines, like housekeeping and babysitting. And about 37% of consumers said they’re tipping more than usual due to the coronavirus pandemic.”
Additionally, according to the latest study from the Blackbaud Institute, organizations found their stride in late spring with overall giving in June increasing 1.2% for the last 12 months ending in June 2020 (compared to the same months ending in June 2019).
Another corner of the philanthropic world also offers good news: donor-advised funds. These funds serve as charitable savings accounts for donors big and small. Donors with accumulated funds in their DAF are living up to their rainy day promise and tapping into those readily available dollars to address issues related to health, racial justice, and economic collapse.
After the Great Recession in 2008, my organization, DonorsTrust, along with most other DAF providers, saw an uptick in grant-making from funds. History appears to be repeating itself today. Our grant volume is up significantly, and we aren’t alone. The New York Times found 32 community foundations “reported an 80 percent increase in donations … from March to May, compared with the same period last year.”
This increase in grant-making to DAFs and foundations suggests that even if many smaller-dollar individual givers back off their giving, this entirely separate universe of funding can persist and continue to give money to the nonprofit organizations most in need.
Your giving still matters in this crisis. Congress incentivized giving in the CARES Act. Donors can now write off up to $300 of charitable giving for their 2020 taxes, even without itemizing the tax return.
Where could you give $300 to have an impact? The worthy options and causes are endless. Find one (or more) and start giving.
There are other ways you can be generous too. Over-tip delivery drivers, send a courtesy payment to your favorite small business, or give a grocery store gift card to your furloughed friend.
The U.S. has the most generous people in the world. In whatever way we engage, this current moment calls us to continue that trend.
Peter Lipsett is the vice president of Donors Trust, a community of donors supporting charities that protect liberties and strengthen society.
