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U.S. charitable donations fell last year

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Donations to charity fell to $499 billion last year, a 3.4% decrease from 2021, according to a report released on Wednesday by Giving USA. 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 coming in gifts from individuals, which fell by 13.4%.

Charitable giving

Source: Giving USA

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 is from micro-donors, who give less than $100.

Learn more about how RSM’s nonprofit and education industry services can help you deliver on your mission.

But there were some notable bright spots in Giving USA’s report. 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 provide a boost to giving.

We also look for foundations and donor-advised funds to play a larger role in giving, as high-net-worth individuals and corporations store away funds earmarked for future philanthropic endeavors.

Changes in giving type by recipient organization

Source: Giving USA

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About Matt Haggerty

Matt Haggerty is a director in RSM’s financial consulting practice and a senior analyst for the nonprofit and education industry. Matt has deep experience assisting nonprofit clients with finance and accounting services, helping align their back office to their mission. As a member of the firm’s Industry Eminence Program, he analyzes trends and themes affecting the nonprofit industry and shaping middle market businesses and organizations.

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