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Americans are very generous, donating nearly half a trillion dollars in 2022.1 Although giving declined from 2020 and 2021 (the two best years on record), donors continue to support causes that are meaningful. One longstanding annual report tracks giving by source, individual income and type of asset with a focus on the “new normal” for philanthropy after the COVID-19 pandemic.2 This information can help tailor our services to our clients’ situations and goals.
Giving USA Report for 2022
The Giving USA Report is the longest running annual report that estimates charitable giving in the United States by source as well as by type of organization. Published by Giving USA Foundation, the report was first issued in 1956 by what’s now The Giving Institute.
In 2022, donors gave an estimated $499.33 billion, about 1.7% of their disposable income.3 Although this is a slight decline in giving from 2021, when donors stepped up their giving to meet urgent needs during the pandemic, this amount constitutes 2% of gross domestic product. Giving has increased or stayed flat in every year except 1987, 2008, 2009 and 2022.4
Choices of which charities to support abound with 1,480,565 Internal Revenue Code Section 501(c)(3) organizations.5 The three largest recipients in 2022 by type of organization were religion (27%), human services (14%) and education (13%). Giving to religious organizations has declined by more than half from the high of 58% in 1983.6
Sources of Gifts
The Giving USA Report tracks four primary sources of giving: individuals, foundations, corporations and bequests:
- Individual giving represents the largest percentage—64%—or $319.04 billion. Over the past 40 years, individual giving grew an annualized average of 4.9%. In 2022, however, giving by individuals declined by 6.4%.
In recent years, a subset of individual gifts called “mega-gifts” (defined as gifts of $450 million and higher) has been tracked. In 2022, mega-gifts totaled nearly $14 billion and represented almost 5% of total giving for the second year.
- Giving by foundations has increased for 12 consecutive years and in 2022 totaled an estimated $105.21 billion, an all-time high of 21% of contributions. In 1982, this source represented about 5% of contributions.7 Individuals are increasingly choosing to make gifts through their foundations. In 2022, more than $1 out of $5 of gifts came from a foundation. The largest foundations grew the most, with those having more than $500 million growing 11.3%. During the pandemic, foundations temporarily imposed fewer reporting requirements, funded general operating support and gave payments exceeding 5% to provide funds during an unprecedented time.
- Corporations represent the smallest portion of the total at 6%, or $29.48 billion, but reflected the strongest growth rate of all four sources. Corporate gifts historically range between 4% to 6% of giving and are largely dependent on the economic environment. Pre-tax profits grew 6.6% between 2021 and 2022, so corporate gifts are forecast to increase in 2023.
- Estate-planning attorneys and allied advisors might be most interested in the $45.60 billion in bequests, which constitute 9% of total contributions. Bequests, which grew almost 50% in the late 1990s, have historically ranged from 6% to 9% of total giving. The volatility from year to year is often due to one or more extraordinarily large estates. Just as mega-gifts account for a significant percent of individual giving, large estates account for more than half of all bequests.
- Estimated bequests from estates of $10 million or more total $24.27 billion.
- Estimated bequests from estates ranging from $1 million to $9.99 million total $9.47 billion.
- Estimated bequests from estates under $1 million total $11.86 billion.
Large estates also claim higher charitable deductions. Estates valued at $50 million and more had the highest percent of returns (44.5%) claiming charitable deductions, whereas 26.1% of estates of all sizes claimed charitable deductions.8
Shifts in Giving
Economic conditions in 2022 created some challenges that affected giving. Individual giving relies on available disposable income, which declined .1%.9 Inflation reached 8%, the highest rate in 40 years.10 The S&P 500 was volatile and declined almost 20%, and there’s a correlation between the stock market and giving,11 particularly for those who itemize their deductions and are likely to own stock.
The top 50 donors (labeled the “Philanthropy 50” by The Chronicle of Philanthropy) contributed $16 billion in 2022, a decline from 2021 and 2020.12 The top three areas these donors contributed to were foundations ($7.98 billion), colleges and universities ($1.77 billion) and medical centers ($981.5 million). There were six bequests among the top 50 donors totaling
$925 million. The largest bequest was an estimated $440 million gift from Ruth DeYoung Kohler II.13
The rise in mega-gifts over time is notable as the wealthy channel giving to specific causes to the exclusion of other causes. A smaller number of individuals make a significant percent of gifts. If a few of these donors reduce their giving, total gifts decline. Understandably, high level gifts and donors are sought after, but this translates into less time and resources being spent on new and smaller gifts and donors.14
The Future of Giving
There’s business potential in understanding popular and current ways to give—including donor-advised funds (DAFs), cryptocurrency, online giving and planned giving tools.
DAFs are among the fastest growing giving vehicles, totaling more than $234 billion in assets in 2022.15 They’re a versatile gift option, allowing donors to contribute a wide variety of assets and establish a family legacy, often for a relatively low $25,000 minimum contribution. During the pandemic, millions of dollars in grants were made from DAFs, creating an immediate impact during a crisis time.
Gifts of cryptocurrency accounted for $125 million from over 1,000 charitable organizations in 2022.16 The Giving Block (a nonprofit that assists other nonprofits in accepting gifts of cryptocurrency) estimates that cryptocurrency donations may exceed $10 billion in the next decade. Donors—especially young donors—may choose this gift option as it allows for anonymous and secure giving and is considered innovative. Despite some setbacks in 2022, the average cryptocurrency donation was $6,295.17
Donations on Giving Tuesday (held the Tuesday after Thanksgiving) reached a record $3.1 billion.18 Although giving by email declined, it still represented 14% of online giving. More than 60% of each generation makes online gifts, and Millennials lead the way with 81% of the generation making online gifts.19
Qualified charitable distributions (QCDs) from individual retirement accounts have increased in popularity since 2006. The SECURE 2.0 Act, passed in late 2022, adjusts QCDs for inflation beginning in 2024. This law also permits a one-time distribution up to $50,000 to a charity in exchange for a charitable remainder trust or a charitable gift annuity, providing an opportunity for individuals to make charitable gifts and receive an income stream.
The future of giving, although uncertain, requires an understanding and appreciation of various ways to give. Americans will continue to be generous, and there’s significant potential business for advisors who specialize in counseling philanthropic individuals.
Endnotes
1. Giving USA: The Annual Report on Philanthropy for the Year 2022 (2023), Givingusa.org.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.
7. Perspectives on Philanthropy, Giving USA webinar sponsored by CCS Fundraising and the IUPUI Lilly Family School of Philanthropy
(June 20, 2023),
8. “SOI Tax Stats—Estate Tax Statistics Filing Year Table 1” (April 20, 2023), www.irs.gov.
9. Supra note 1.
10. Ibid.
11. Craig Wruck, “Giving USA Report on Philanthropy: Is It the End of the World as We Know It?” PG Calc (August 2023).
12. Maria DiMento, “The Philanthropy 50,” The Chronicle of Philanthropy (Feb. 14, 2023).
13. Supra note 1.
14. Quarterly Fundraising Report: Year-to-Date Nonprofit Sector Trends Q4 2022 (Jan. 1, 2022 – Dec. 31, 2022), Fundraising Effectiveness Project (2023),
15. Gideon Taub and Sandra Swirski, “Discussing Donor-Advised Funds With Clients,” Trust & Estates (July/August 2023).
16. Shubham Pandey and Kyle Baird, “Crypto Philanthropy Outperformed Markets in 2022, Donations Forecasted to Hit $10B by 2032,” Beincrypto.com (April 3, 2023).
17. The Giving Block, 2023 Annual Report: Crypto Philanthropy Data, Trends & Predictions,
18. Supra note 1.
19. Ibid.
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