Giving USA 2024: Donations up, but inflation muted the impact

Giving in the United States reached a new high during 2023 – $557.16 billion – an increase of 1.9% compared to 2022. But the impact was smacked down by inflation of 4.1%, with giving by individuals, bequests, foundations and corporations showing a combined decline of 2.1% compared to 2022 in real dollar impact. 

Individuals made up 67% of giving, an increase from 64% during 2022. Foundations contributed 19% of all philanthropy tracked compared to 21% during 2022. Bequests were 8%, down from 9% during 2022. Corporations inched up 1% to 7% of all giving. 

Giving to religion topped the donors’ recipients list at $145.81 billion, followed by education at $87.69 billion and health at $56.58 billion. Giving made up 2% of the nation’s gross domestic product (GDP) for 2023. 

The data in the annual Giving USA: The Annual Report on Philanthropy are reported in real dollars and inflation-adjusted dollars. The 2023 number of $557.16 billion will be adjusted next year but likely will not exceed the $621.29 billion of 2021. 

“Fundraisers say they care about the number because we know that is what they are measured against. On the nonprofit side, if they are raising the same amount of money, that $100 is not going as far. From the donor perspective, $100 doesn’t buy as much in their own basket of goods,” Una Osili, Ph.D., associate dean for Research and International Programs at the Lilly Family School of Philanthropy at Indiana University, said in a statement. 

Giving has declined just five times in real numbers since 1983, the first year reported by Giving USA. However, giving has declined in inflation-adjusted numbers 35% of the time. For 2023, inflation-adjusted dollars are adjusted to 2023 dollars, so just for 2023, current and inflation-adjusted dollars are the same $557.16 billion. 

“Keep in mind the economy is actually much better,” said Osili. “Most analysts had 2023 as a recessional year, not only recession and part of a pullback.” According to data from the U.S. Department of Commerce, the nation’s gross domestic product for 2023 was an estimated $27.36 trillion, which was a 6.3% increase from 2022. 

The number of deaths in the United States hit a record in 2021 at 3.46 million and 3.27 million in 2022. Time estimates for estate probate can be anywhere from six months to two years or more.  

It is getting difficult to track all giving to charity. These areas will form a foundation for giving but will need to be expanded to get a more complete picture. Osili explained there is an issue of transparency, with wealthy donors using various types of capital to infuse equity into the sector. “Perhaps as we think about the problems we are trying to solve globally, that we need more types of capital to solve these problems … one single sector with its philanthropy alone cannot tackles some of these issues,” she said.