COVID-19, Racial Justice and Stock Market Gains Led Americans to Give a Record US$471 Billion to Charity
According to the latest annual report from the Giving USA Foundation, the total American’s donated to charity in 2020 rose 3.8% from the prior year in inflation-adjusted terms to a record US$471 billion.
The report released in partnership with the Indiana University Lilly Family School of Philanthropy at IUPUI revealed that the 2020 pandemic, the ensuing economic crisis, and efforts to advance racial justice created an intense, widespread strain on nonprofit organizations.
Amid these circumstances, generous giving coupled with the stock market rise in the year’s final months boosted contributions. By comparison, in 2019, a year of economic expansion and stock gains, charitable donations increased by only 2.8 percent.
“As a result, 2020 is the highest year of charitable giving on record,” said Laura MacDonald, CFRE, chair of Giving USA Foundation and Principal and Founder of Benefactor Group.
The reports two lead researchers observed, “that giving bucked historical trends in three ways.”
- The total increased despite a recession;
- Foundations’ giving surged;
- Gifts to various nonprofits providing social services, supporting people in need and protecting civil rights grew the most.
Who Gave What to Charity?
- Individual giving totaled an estimated $324.10 billion in 2020, a 2.2 percent increase. (1.0 percent , adjusted for inflation), reaching its highest total dollar amount to date, (adjusted for inflation).
- Foundation donations increased 17.0%, to an estimated $88.55 billion (a growth rate of 15.6 percent, adjusted for inflation), reaching its highest-ever dollar amount.
- Bequest contibutions were an estimated $41.19 billion in 2020 and grew 10.3% from 2019 (an increase of 9.0%, adjusted for inflation).
- Corporate giving declined by 6.1% in 2020 to $16.88 billion (a decline of 7.3% adjusted for inflation).
“Giving in 2020 amid complex and challenging developments serves as a reminder of the unique way Americans respond to local and national opportunities and needs – in the moment,” said Ted Grossnickle, chair of The Giving Institute and senior consultant and founder of Johnson, Grossnickle + Associates.
