According to Giving USA 2023: The Annual Report on Philanthropy, American individuals, bequests, foundations and corporations gave an estimated $499.33 billion to U.S. charities in 2022. Economic conditions introduced new challenges in 2022 after record giving records were set during the pandemic years of 2020 and 2021.
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 2023 including:
- Total giving decreased in 2022, a relatively rare occurrence usually seen during years with difficult or unusual economic conditions. Giving was influenced by stock market volatility and economic uncertainty.
- Giving USA’s historical data demonstrates that charitable giving often rebounds from each decline.
- Giving grew in five of the nine categories of nonprofits that receive charitable contributions (arts/culture/humanities; religion; foundations; health; and international affairs).
- Giving by foundations is growing as a share of total giving. $1 of every $5 given to charity in 2022 came from foundations.
- For the second year in a row, very large gifts by some of the wealthiest Americans represented nearly 5% of individual giving. Mega-giving from six individuals and couples totaled $13.96 billion.
An analysis of Giving USA 2023 will take place on Friday, June 23, at 10:00AM at the National WWI Museum as part of the 501 (c) Success National Speaker Series, sponsored by Byrne Pelofsky + Associates, LLC, Bank of America Private Bank and Nonprofit Connect. The program will feature a report on Giving USA 2023 presented by Dr. Una Osili, Associate Dean for Research and International Programs at the Lilly Family School of Philanthropy. Participants should register now at www.npconnect.org.
“Giving USA 2023 highlights the rapidly changing face of philanthropy and giving trends,” says Jeffrey Byrne, Co-Founder and CEO of Byrne Pelofsky + Associates. “As the world around us changes, it’s no longer business as usual for fundraisers. Nonprofits need to understand how technology can improve philanthropy, not hinder it. We are in an era of so much change, but Americans are still the most generous group of people in the world. Generosity is going to show up in different ways over the next decade.”
The Numbers for 2022 Charitable Giving by Source:
Giving by individuals totaled an estimated $319.04 billion, declining 6.4 percent in 2022 (a decline of 13.4 percent, when adjusted for inflation).
Giving by foundations grew 2.5 percent, to an estimated $105.21 billion in 2022 (a decline of 5.0 percent, when adjusted for inflation).
Giving by bequest totaled an estimated $45.60 billion in 2022, growing by 2.3 percent over 2021 (a decline of 5.3 percent, when adjusted for inflation).
Giving by corporations is estimated to have increased by 3.4 percent in 2022, totaling $29.48 billion (a decline of 4.2 percent, when 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.4
Highlights about Charitable Giving by Source:
- Giving by individuals declined after two of the most generous giving years on record.
- Giving by foundations, bequests, and corporations grew in current dollars.
- Corporations and foundations experienced positive two-year growth, even when adjusting for inflation.
- Giving by corporations performed more strongly in current dollars despite unusual economic conditions. Corporations had the strongest growth rate of all four sources in current dollars at 3.4% (-4.2% adjusted for inflation)
The Numbers for 2022 Charitable Giving to Recipients:
Giving to religion grew by 5.2 percent between 2021 and 2022, with an estimated $143.57 billion in contributions. Inflation-adjusted giving to the religion subsector declined by 2.6 percent.
Giving to human services reached $71.98 billion in 2022, and declined by 0.6 percent in current dollars, staying relatively flat with 2021. Adjusted for inflation, giving to human services organizations declined by 8.0 percent.
Giving to education is estimated to have declined by 3.6 percent between 2021 and 2022, to $70.07 billion. Adjusted for inflation, giving to education organizations declined by 10.7 percent.
Giving to foundations is estimated to have increased by 10.1 percent in 2022, to $56.84 billion. Adjusted for inflation, giving to foundations grew by 1.9 percent
Giving to health is estimated to have grown by 5.1 percent between 2021 and 2022 (a decline of 2.6 percent, when adjusted for inflation), to $51.08 billion.
Giving to public-society benefit organizations decreased an estimated 8.4 percent between 2021 and 2022, to $46.86 billion. Adjusted for inflation, giving to public-society benefit organizations declined by 15.2 percent.
Giving to international affairs is estimated to be $33.71 billion in 2022, staying level with 2021 with 10.9 percent growth. Adjusted for inflation, giving to international affairs organizations declined by 2.7 percent.
Giving to arts, culture, and humanities is estimated to have increased 2.9 percent between 2021 and 2022, to $24.67 billion. Adjusted for inflation, giving to the arts, culture, and humanities subsector declined by 4.7 percent.
Giving to environmental and animal organizations is estimated to have decreased 1.6 percent between 2021 and 2022, to $16.10 billion. Adjusted for inflation, donations to the environment/animals subsector declined by 8.9 percent.
Giving to individuals is estimated to have stayed relatively flat with a 0.6 percent growth between 2021 and 2022, to $12.98 billion. Adjusted for inflation, donations declined by 6.8 percent. The bulk of these donations are in-kind gifts of medications to patients in need, made through the patient assistance programs of pharmaceutical companies’ operating foundations.
Unallocated giving was negative $28.54 billion in 2022. This amount can be considered as the difference between giving by source and use in a particular year. This amount includes the difference between itemized deductions by individuals (and households) carried over from previous years. The tax year in which a gift is claimed by the donor (carried over) and the year when the recipient organization reports it as revenue (the year in which it is received) may be different.
Highlights about 2022 Giving to Charitable Organizations:
- Giving to religion, health, and arts, culture and humanities organizations grew in current dollars, but declined when adjusted for inflation.
- Giving to international affairs and giving to foundations both reached the highest giving level on record when adjusted for inflation. Giving to international affairs is influenced by international crises, such as Russia’s invasion of Ukraine.
Despite dips in giving in 2022, Giving USA’s historical data demonstrates that charitable giving typically rebounds from each decline. Still, nonprofits must continue to evolve and innovate in order to maintain momentum with their donors. The resilience and innovation developed in the pandemic era will continue to serve the sector. Nonprofits can continue to evolve by:
- Expanding Online Giving
- Building the future pipeline of donors + sustaining existing donors
- Adapting to new giving tools such as AI
About Giving USA
For more than 65 years, Giving USA: The Annual Report on Philanthropy has provided comprehensive charitable giving data for reliant donors, fundraisers, and nonprofit leaders. The research in this annual report estimates all giving to all charitable organizations across the United States. Giving USA is a public outreach initiative of Giving USA Foundation™ and is researched and written by the Indiana University Lilly Family School of Philanthropy. The Giving USA Foundation, established in 1985 by what is now The Giving Institute, endeavors to advance philanthropy through research and education. Explore Giving USA products and resources at givingusa.org.
About The Giving Institute
The Giving Institute, the parent organization of Giving USA Foundation™, consists of member organizations that have embraced and embodied the core values of ethics, excellence, and leadership in advancing philanthropy. Serving clients of every size and purpose, from local institutions to international organizations, The Giving Institute member organizations embrace the highest ethical standards and maintain a strict code of fair practices. For more information on selecting fundraising counsel, visit www.givinginstitute.org.
Giving USA Methodology
Originally, the Giving USA Foundation gathered its data through in-house research. In 2000, the Giving USA Foundation created a partnership with the Indiana University Lilly Family School of Philanthropy, in which the school conducts the research. The research conducted by the Lilly Family School of Philanthropy spans:
- 53 million households across the United States
- Nearly 16 million corporations claiming charitable deductions
- Over a million estates
- About 82,000 foundations
Donations made to all of these entities ultimately go to nearly 1.1 million charities, as well as to an estimated 300,000 religious organizations across America.