Together with our colleagues, we will continue to investigate whether these new patterns will continue in 2021 and beyond.“Small organizations are often particularly effective because they’re very connected to the communities they serve,” she said. While our research focuses on giving to charities, these new habits may indicate a broader move toward generosity on the horizon. In addition, many Americans gave directly to others through crowdfunding platforms and other apps, which are particularly popular for younger people and people of color. When physical distancing became essential, Americans went out of their way to buy meals-to-go to support local restaurants, paid their hairdressers when their salons were closed and volunteered either formally or by simply helping their neighbors out. We also feel it’s important to observe that more than half of all Americans responded to the upheaval of 2020 with an outpouring of generosity, which they expressed in many ways besides donating money to charities. What’s more, all nine categories that we track received gifts slated for COVID-19 relief and racial justice causes. ![]() Keck Foundation’s $6 million in donations to the University of Southern California, count as giving to education, not giving to health. In addition, some large gifts that funded COVID-19 research, such as the W.M. ![]() That could help explain the 8.6% decline in giving to the arts, culture and humanities sector as well as why giving to health-related organizations fell by 4.2% amid the pandemic. However, organizations that rely on in-person events and services – such as operas and museums, as well as charity walks, runs and other peer-to-peer fundraising events that raise money to fight diseases – overall fared worse in 2020 compared to 2019. Civil rights and voting rights groups also fall into this category. It also includes donor-advised funds, accounts through which donors can direct gifts to charities, and community development financial institutions, private-sector financial operations that boost local borrowers. This broad category includes the United Way and its local branches, which pool donations raised in workplaces, from corporations and other sources. Giving to public-society benefit organizations grew the most, a 14.3% increase to $48 billion. This additional giving responded to the COVID-19 pandemic and the economic troubles it brought about, as well as broad calls for racial justice. Those donations grew 8.4%, in inflation-adjusted dollars, to $65 billion. In addition to addressing the coronavirus pandemic and the unemployment spike it caused, American individuals and foundations responded to calls regarding racial justice.įood banks, homeless shelters, youth programs and other organizations that meet basic needs, collectively known as human services groups, received an outpouring of support in 2020. Uneven experiences for different kinds of nonprofits While certain industries, such as technology, grew in 2020, many others, including travel, hospitality and transportation, experienced losses.ģ. Another study found that one-time online gifts to organizations that provided COVID-19 relief grew by 41%.Īt the same time, corporate philanthropy, which our colleagues in the past have found to be closely linked to economic performance and the profits companies earn, actually fell 7.3%. One report found that the total raised from gifts under $250 grew more than larger donations. While giving by the wealthiest Americans – especially novelist and philanthropist MacKenzie Scott – often dominated the headlines, giving by individuals wasn’t limited to large-scale gifts. ![]() In particular, America’s billionaires became an estimated $1.2 trillion richer in 2020. Stock gains may have also boosted giving by American households, the source of about two-thirds of all charitable dollars, which grew 1% to set another inflation-adjusted record of $324 billion. As their stocks and other holdings grow, that 5% gets larger too. They are required by law to annually give away 5% of the average value of their assets, often held in endowments. Strong stocks also bolstered giving by foundations, which support a wide array of charitable activities by making grants. Based on our findings, it looks like they kept their word: Foundation giving rose 15.6% to a record $88.55 billion in 2020, after adjusting for the effects of inflation. Soon after the COVID-19 pandemic began, many foundations pledged to increase their grantmaking. But stocks usually decline during recessions.Ģ. One reason why giving rose in 2020, even though the economy contracted, was that stocks notched gains by the end of the year.Įconomists have found that donors give more to charity when the stock market fares well.
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