Total estimated charitable giving in the United States rose 5.1 percent between 2019 and 2020 despite the many challenges of 2020
Please join Byrne Pelofsky + Associates, LLC, Bank of America and Nonprofit Connect for 16 Years of presenting Giving USA to Kansas City. This special presentation of Giving USA 2021: The Annual Report on Philanthropy for the Year 2020 will be held on Friday, June 18, via webinar. The program will begin at 10:00 a.m. Register here.
According to Giving USA 2021: The Annual Report on Philanthropy for the Year 2020, American individuals, bequests, foundations and corporations gave an estimated $471.44 billion to U.S. charities in 2020. Despite facing three pandemics in 2020 – the public health crisis, the economic recession and a global reckoning with institutional and systemic racism – the report places 2020 among the highest years ever for charitable giving.
Giving USA, the longest-running and most comprehensive report of its kind in America identifies trends in charitable giving that are important to the nonprofit sector’s success and growth. Organizations can use the data from Giving USA to inform fundraising strategies and allocate resources for the greatest outcomes.
There were a number of key takeaways from Giving USA 2021 including:
- Giving by foundations reached a record 19% of total giving in 2020
- Online giving grew 13% in 2020, its highest share of total giving on record and proved to be an important strategy for many nonprofits in 2020.
- Giving by individuals grew to 69% of total giving due in part to mega-gifts from individual donors like Mackenzie Scott ($5.734 billion donated in 2020) who gave direct, unrestricted funds to a number of nonprofits in 2020
“I am very excited to present this data to the Kansas City nonprofit community,” says Jeffrey Byrne, Co-Founder and CEO of Byrne Pelofsky + Associates. “The data in Giving USA 2021 demonstrates the enormous innovation and resiliency of the nonprofit sector. We saw unprecedented innovation in fundraising models and a record increase in giving. There is a lot to celebrate.”
The Numbers for 2020 Charitable Giving by Source:
Giving by corporations is estimated to have declined by 6.1% in 2020, totaling $16.88 billion (a decline of 7.3% adjusted for inflation). Corporate giving includes cash and in-kind contributions made through corporate giving programs, as well as grants and gifts made by corporate foundations)
Highlights about Charitable Giving by Source:
- Three out of four sources of giving saw solid growth (individuals, foundations and bequests) and corporate giving declined
- Giving by foundations reached a record 19% of total giving in 2020, but giving by individuals is still the largest share of total giving.
- Growth in giving by foundations & individuals has been linked to the stock market performance.
- Factors that impacted corporate giving in 2020 include a decline in GDP by 2.3% and corporate pre-tax profits declined by 3.5%
The Numbers for 2020 Charitable Giving to Recipients:
Highlights about 2020 Giving to Charitable Organizations:
- Seven out of nine subsectors grew in 2020.
- Human services experienced rapid growth in 2020. This growth continues a pattern seen in previous recessionary years, as well as years where the U.S. has experienced a crisis.
- Giving to arts, culture, and humanities declined by 7.5% in 2020. The shutdowns in the pandemic impacted in-person events for many arts organizations, culture, and humanities organizations.
“The 2020 report is being released at a critical time in our economy, and will help us understand the evolution of philanthropy,” says Byrne. “The data tells us that Americans are generous and have shown tremendous support for the nonprofit sector throughout the upheaval of 2020. I’m proud of our nonprofit community for their tenacity and creativity during this unprecedented year.”
Giving USA, the longest-running and most comprehensive report of its kind in America, is published by Giving USA Foundation, a public service initiative of The Giving Institute. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI.