U.S. charitable donations fell last year
ARTICLE | August 01, 2023
Authored by RSM US LLP
A report released on Wednesday by Giving USA shows that donations to charity fell to $499 billion last year, a 3.4% decrease from 2021. The decline was even more stark—10.5%—when accounting for inflation.
Every listed giving source declined in inflation-adjusted giving last year, with the largest decrease evident in gifts from individuals, which fell by 13.4%.
Economic headwinds are the most likely reason for this decline. The rise of interest rates, drop in the stock markets, and fears of a recession were front of mind for donors of all kinds. Unsurprisingly, the largest decline among individuals was from micro-donors, who give less than $100.
But Giving USA’s report included some notable bright spots. Donations to international affairs organizations increased by 10.9% as American donors responded to global events. Likewise, giving to foundations was up by 10.1% as accumulated savings were committed to philanthropic initiatives.
This year, the resilience of the U.S. economy, in particular the strong labor market, and the rebound of the stock market should boost giving.
Foundations and donor-advised funds in particular stand to benefit from the stronger economic outlook, as corporations and high net worth individuals look to distribute the funds they’ve earmarked for philanthropic endeavors.
Call us at (800) 624-2400 or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Matt Haggerty and originally appeared on 2023-08-01.
2022 RSM US LLP. All rights reserved.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Weinlander Fitzhugh is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Weinlander Fitzhugh can assist you, please call (989) 893-5577.