Nonprofit Organizations and Civil Society in the United States by Kelly LeRoux & Mary K. Feeney

Author:Kelly LeRoux & Mary K. Feeney
Language: eng
Format: epub
ISBN: 9781135103545
Publisher: Routledge

Giving in the US

Who Gives?

“Almost everyone” is the short answer to the question “Who gives?” As mentioned earlier, the vast majority of American households (88%) give to charity each year. In fact, although the foundations discussed earlier give large amounts of money to particular causes, individuals are a larger source of giving than foundations. According to The Giving USA Foundation, in 2009 individuals accounted for the largest proportion of private giving to public charities, 75% of giving ($227.41 billion) came from individuals compared to 13% from foundations ($38.44 billion), 8% from bequests ($23.80 billion), and 4% from corporations ($14.10 billion).26

Giving patterns vary by income level, age, religious affiliation, and region of the country. Giving varies in ways that might come as a surprise. For example, simple logic might suggest that the wealthy give more because they have more to give. However, middle-class Americans give a much larger share of their discretionary income to charities than do the rich. According to a 2012 report by the Chronicle of Philanthropy, households that earn $50,000 to $75,000 give an average of 7.6% of their discretionary income to charity, compared with an average of 4.2% for people who make $100,000 or more.27 Other researchers note that the lowest income groups in the US give a larger proportion of their income to others than do higher income groups, and that, during economic downturns, charitable giving among richer donors declines more than among lower income givers.

These data tell only half the story however, because they capture only those households that itemize their federal tax returns, which allows for receiving the tax benefits of charitable contributions. Recall that in Chapter 2 we learned that lower income households are far less likely to itemize their tax returns, meaning that charitable giving by this group is not rewarded with tax breaks like it is for those in the wealthier groups who more often itemize their returns. While the total dollars donated by those in the upper-middle class and wealthy households amounts to more than that donated by lower income groups, the middle and lower income groups donate a larger percentage of what they have to give, meaning that they are ultimately more generous with their giving. Data from the US Bureau of Labor Statistics indicates that the poorest fifth of American households give 4.3% of their income to charitable organizations, compared to 2.1% among the fifth richest households.28

There are also some interesting trends with regard to charitable giving by age. Contrary to the often-heard claims that young adults are apathetic and disengaged, giving is common among those in Generation Y, also called Millennials (ages 18–32; born 1980s–2000s), and their collective contributions amount to 11% of total giving in the US today. A 2013 report by Blackbaud shows that 60% of this group gave an average of $481 per year across 3.3 organizations. While Generation Xers (ages 23–48; born 1960s–1980s) give more money than Gen Yers in total, they actually lag slightly behind Gen Y in total participation with 59% in this cohort giving an average of $732 across 3.

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