1 in 4 Donors Increased Their Giving Due to Rising Inflation

 

Among American donors with a charitable giving budget, nearly 1 in 4 (24%) said they increased their giving due to inflation during the last year. Further, donors with a charitable giving budget are two times more likely to increase their giving next year, due to rising inflation.

These findings come from a study by Vanguard Charitable, one of the nation’s largest donor-advised funds. It found that 45% of American donors have an annual charitable giving budget—that is, an intentional line item for charitable donations in an individual's annual financial budget.

"In a time when nearly every American is feeling the impact of inflation, it is inspiring to see firsthand the power of having a charitable giving budget," said Rebecca Moffett, president of Vanguard Charitable. "When funds are intentionally set aside and committed for charity, it makes an incredible difference in driving critical missions forward and supporting those most in need, no matter the state of the market."

Other findings:

  • Increased generosity: American donors who included charitable giving in their annual budget gave nearly four times more ($2,268 vs. $626) than those who did not budget for giving over the past 12 months.
  • Giving when it is needed most: 86% of Americans who have a charitable giving budget say it is important for them to support charities financially (i.e., donating money) during times of economic uncertainty (e.g., rising inflation or recession) compared to 72% with no giving budget.

The online survey of 2,065 U.S. adults was conducted in September 2022 by The Harris Poll on behalf of Vanguard Charitable. Vanguard Charitable has granted more than $14 billion to charity since its 1997 founding.

The findings are consistent with ECFA’s 2022 State of Giving report, which documented an increase in charitable giving during both pandemic years (2020 and 2021). It also reported on an ECFA survey that found year-to-date giving in 2022 is up over 2021’s giving for a majority of ECFA members. It also reported an optimistic outlook about 2023 giving for a majority of ECFA members.

 

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.