Alexandria, VA — Giving USA this month released new data showing charitable giving in 2022 dropped 10.5 percent after inflation and that individual giving cratered 13.4 percent, a decline in individual giving researchers haven’t seen since the 2008 housing crisis.
“The numbers out of Giving USA reflect a sad — though, unsurprising — reality, as persistent inflation driven by out-of-control government spending cuts into everyday expenses and crowds out room in family budgets for charity,” says DonorsTrust President and CEO Lawson Bader.
Giving Accounts More Critical Than Ever
Giving USA is a project of the Giving Institute and for the last 60 years has reported annually on its research, conducted since 2000 by the Indiana University Lilly Family School of Philanthropy, using the latest methodological approaches to measure U.S. charitable trends.
“At DonorsTrust, we’re committed to ensuring Americans of all socioeconomic backgrounds have access to charitable tools that simplify, secure and grow their philanthropic footprint. This is particularly important now as megadonors and foundations start to eclipse the voice of everyday givers.”
Donor-advised funds, sometimes called giving accounts, can prove a critical resource in the coming weeks and months as charities continue to struggle with fundraising shortfalls and decreased purchasing power at a time when talent and goods are at a premium.
DonorsTrust Givers Respond
American families, likewise, have fewer dollars to donate and are endeavoring to stretch their budget as far as it can go. Remarkably, though, Americans are still giving to those in need — even when times are tough. That’s certainly the case with the DonorsTrust community of givers.
“During a year when individual giving and giving in general fell precipitously, the DonorsTrust community of givers granted out nearly a quarter-billion dollars to a variety of charities — giving generously to hospitals, schools, places of worship, food banks and public-policy nonprofits,” says Bader.
Eighty Cents on the Dollar
In fact, for every dollar contributed to an account at DonorsTrust last year, 80 cents went right back out the door to support charities in need. This 80% payout rate far exceeds the 2022 average donor-advised-fund payout rate of 27.3% — evidence of our vibrant donor community despite inflation and other economic headwinds.
“Charities will continue to rely on the generosity of the DonorsTrust community and, if our history is any indication, our givers will rise to the challenge and meet the needs of the more than 3,000 unique charities our clients have recommended grants to over the past 25 years.”
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About DonorsTrust
DonorsTrust is a mission-focused donor-advised-fund provider that primarily serves conservative and libertarian givers. Established in 1999 as a 501(c)(3) public charity, DonorsTrust is a community of donors devoted to creating a better future for all. DonorsTrust supports charities that protect constitutional liberties and strengthens civil society through private institutions. Since its inception, DonorsTrust has granted more than $1.9 billion to more than 3,000 unique charities in the arts and sciences, education, public policy, religion, and social services.
Contact Carolyn Bolton, director of communications and marketing, at cbolton@donorstrust.org to schedule an interview or for additional comment.
