2022 Stats Show Major Drop in Total Giving

As reported by both the Chronicle of Philanthropy and the Nonprofit Times, the latest data in Giving USA: The Annual Report for Philanthropy show total giving was $499.33 billion in 2022. This represents a $17 billion drop (10.5%) in the inflation-adjusted total of $516.65 donated in 2021. Giving USA is published by the Giving Institute with research conducted by the Indiana University Lilly Family School of Philanthropy. This reduction in giving raises further concerns as the donations from individuals dropped 13.4 percent from the previous year after adjusting for inflation. The Chronicle notes that inflation was a significant factor in this reduced total giving since donations had less purchasing power.

Giving USA shows the sources of the total $499.33 consists of the following:

Individuals – 64% - $319.04 billion
Foundations – 21% - $105.21 billion
Bequests – 9% - $45.60 billion
Corporations – 6% - 29.48 billion

The Nonprofit Times points out that “Seven of the nine [types of organizations] declined when inflation-adjusted dollars were calculated. Only international affairs (up 2.7%) and gifts to grantmaking foundations (1.95%) were in positive territory.” The Chronicle adds that the increase that went to international affairs was probably due to the war in Ukraine and other disaster situations.   

The distribution of this $499.33 billion by type of organization are:

Religion – 27% - 143.57 billion
Human services – 14% - $71.98 billion
Education – 13% - $70.07 billion
Gifts to grantmaking foundations – 11% - $56.84 billion
Health – 10% - $51.08 billion
Public society benefit – 9% - $46.86 billion
International affairs – 6% - $33.71 billion
Arts, culture & humanities – 5% - $24.67 billion
Environmental – 3% - $16.10 billion
To individuals* – 2% - 12.98 billion
*Giving to individuals consists of in-kind gifts of medications made by pharmaceutical companies to patients in need.

Finally, the Chronicle reports that many charities are indicating the receipt of fewer donations of $1 million or more so far in 2023 when compared to the same time period last year. Let’s hope this changes for the second half of this year. 

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Video of the Week

This BBB Wise Giving Alliance webinar recording covers a 6/15/23 session led by Angela P. Walton of Breakthrough Marketing Consulting. She outlines best practices for nonprofits to navigate an increasingly fragmented media environment and adapt to ever-evolving media and audience trends. Angela was joined by Terese Kung, Chief Strategy Officer at Harrison/Star sharing success stories in executing efficient and effective marketing campaign strategies and tactics. Terese Kung also serves as a member of the BBB Wise Giving Alliance Board of Directors.

 

 

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• American Himalayan Foundation
• Women's Sports Foundation
• Hope Walks

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.