“As an optimist, I believe that Americans’ generosity will continue to grow” — Paul Ebeling
Charitable giving in the United States reached a record $471-B in Y 2020, according to a report released Tuesday that offers a comprehensive look at American philanthropy.
The Giving USA report says Americans gave more to charity last yr than in Y 2019, despite an economic downturn that disrupted the paychecks of millions.
Faced with greater needs, estates and foundations also opened up their pocketbooks at increased levels resulting in a 5.1% spike in total giving from the $448-B recorded for Y2019, or a 3.8% spike when adjusted for inflation.
It is the 1st study to provide a comprehensive look into how donors big and small stepped up to meet the increased needs brought forth by the economic crisis, racial unrest and a global virus chaos.
Experts say the strong yr-end finish by the S&P 500, which closely tracks with giving from individuals and foundations, along with the uptick in personal income by the end of Y 2020 likely contributed to the spike.
Giving by individuals made up a majority of the donations last year rose by approximately 2%. The biggest uptick came from foundations, who, in total, increased their giving by 17% for an estimated $88.5-B in contributions. Those donations made up about 19% of the total share of contributions, the largest that has ever come from foundations.
By contrast, companies gave about 6% less in Y 2020 than they did in Y 2019, the report said. Experts note giving by corporations is closely tied to GDP and pre-tax profits, which declined last year.
Most nonprofit categories experienced a boost in contributions, with the strongest growth seen among public-society groups that include civil rights organizations and other charities.
Have a healthy day, Keep the Faith!