U.S. charitable donations in 2019 were nearly a half-trillion dollars and “marked the highest contributions ever,” the Treasury Department reported Friday.
“The American people are among the most generous in the world,” said Secretary Steven Mnuchin in prepared remarks. “President Trump’s pro-growth economic policies have provided hard-working Americans with robust opportunities, including the opportunity to give back to their communities, organizations, and causes that strengthen our country.”
The Treasury Department relies on data from Giving USA, which is an annual report on charitable giving that is compiled by the Indiana University Lilly Family School of Philanthropy.
The report found that individuals, bequests, foundations, and corporations gave an estimated $449.64 billion to U.S. charities last year. That is a 4.2% increase from 2018, when contributions totaled $431.43 billion.
The record amount of giving suggests that concerns that doubling the standard deduction as part of the 2017 GOP tax overhaul would decrease charitable giving were likely unfounded.
The level of charitable donations is largely based on the strength of the economy and social forces, according to Dr. Una Osili, the associate dean for research and international programs at the Lilly Family School of Philanthropy.
“Donors’ giving patterns evolve in response to changes in economic and social forces. In 2019, we saw solid, broad-based growth in almost all aspects of charitable giving, and especially in giving by individuals due to strong growth in the S&P 500 and personal income,” she said in prepared remarks.
According to the report, the “overall U.S. economy was relatively strong in 2019, lifted by the robust performance of many of the economic factors that affect giving, such as a 28.9% increase in the S&P 500 and 4.1% growth in the GDP, both in current dollars. Giving by individuals and giving by corporations were buoyed by the growth in the stock market.”
