Good news: Americans are giving more.
Total donations by individuals, bequests, foundations and corporations to nonprofit organizations in 2024 rose by 6.3% to a record $592.5 billion, according to the latest report from the Giving USA Foundation. Better yet, total giving increased by 3.3% after subtracting inflation (also a new high), the first time in three years donations outraced inflation.
Individual giving comprises some two-thirds of the total. Individual giving jumped by 8.2% to $392 billion or 5.1% adjusted for inflation. (Although the dollar amounts are smaller, studies suggest those with fewer resources give a greater proportion of their income than higher-income peers.)
Corporate giving rose before and after inflation. Foundation giving declined slightly after factoring in the price level. Bequests were lower.
A stronger economy and financial markets encourage charitable giving, and vice versa. The giving numbers are impressive considering the Tax Cuts and Jobs Act of 2017 (TCJA) — the signature legislation from President Donald Trump’s first term in the White House — significantly increased the standard deduction, which led to a sharp reduction in the number of itemizing households.
Volunteering numbers also jumped: The Census Bureau and AmeriCorps reported more than 28% of the population age 16 and older formally volunteered between September 2022 and September 2023. The number of volunteers is closing in on pre-pandemic levels.
Trump’s megabill, working its way through Congress, will affect giving. Whatever the outcome of that legislation, the demand from nonprofits for money and volunteering are on the rise because of cuts to federal spending.
The giving mindset builds trust, strengthens relationships and reinforces shared values within communities. As Richard Leider, founder of Inventure - the Purpose Company, wrote: “If you want to help yourself, help others. This works because it gets you out of your head and your narrow life and into the lives of others.”
