In recent reports, affluent American households have shown a shift in their philanthropic trends amidst economic uncertainty. According to a collaborative study by Bank of America Private Bank and Indiana University Lilly Family School of Philanthropy at IUPUI, charitable donations are on an upward trend, with an average donation amount of $34,917 and an 85% participation rate. This trend is primarily influenced by women and is accompanied by a rebound in volunteering activities, driven by affluent volunteers' belief in making a difference.
The study, released on Tuesday, also highlighted the growing role of Millennials and Gen Z in philanthropy, with a particular emphasis on climate change causes. Affluent women often align their values with their purchasing decisions but remain underrepresented in nonprofit governance boards.
Despite the increase in overall charitable giving, there has been a noted decrease in contributions to religious organizations. This decline coincides with the widespread use of structured giving vehicles for donations. The study also emphasizes the desire among younger donors to develop a more strategic approach to giving.
Another report from Bank of America's biennial survey with Lilly Family School of Philanthropy reveals that in 2022, there was a decrease in charitable giving among Americans with a net worth of $1 million or income of $200,000. Economic factors like the S&P 500's 19% drop were cited as reasons for the 85% donation rate (down from 88%) and a 19% average donation decrease. Despite this decrease, donations increased by over $5,600 from 2017 levels.
More than half of these affluent Americans donated to basic needs charities and 39% to religious services. However, whether these trends represent a return to pre-pandemic patterns remains unclear.
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