A new study reveals Americans’ relationship with charitable donations. While generosity is a core value for three-quarters of Americans, economic concerns have led some to tighten their belts. However, many Americans are open to advice on how to prioritize philanthropy.
In a new national survey by Wells Fargo, 29% of Americans report donating less to charity this year compared to last year, and 51% feel they do not have enough money to donate to charity.
Still, 67% of Americans reported having donated something in the past year, with 54% saying they donate to charity even without much extra money. The study found that economic concern is a significant factor in reducing donations, with 52% of Americans reporting that their decrease in donations is a direct result of the current economy.
“A pinch of rising costs is creating a moral dilemma. Many Americans are at an impasse between what they want to do and what they can do,” says Stephanie Buckley, head of Trust Philanthropic Services at Wells Fargo Wealth & Investment Management.
Despite this dilemma, the study reveals that among the two in three Americans who made a charitable donation this year, 53% still report donating the same amount to charity as last year, and another 19% report donating more. In fact, 60% of these Americans are so committed to their donations that they include charity in their budget, and 24% go so far as to delay their own financial needs to donate.
Happiness Drives Donations
The factors driving Americans’ donations are largely altruistic. The most common motivations cited are that it makes them happy, aligns with their personal values, and because they have a personal connection to a cause. In comparison, financial benefits have very little to do with it, with only 10% of Americans donating for tax deduction reasons.
“There is a misconception that many people donate for selfish reasons, particularly among the wealthy. In reality, regardless of wealth level, donations tend to be almost always driven by the desire to make an impact,” says Buckley. “In fact, anonymous donations continue to be a growing trend.”
Donors Want to Be Strategic
While 52% of Americans do not receive any advice on charitable donations, 57% want to be more strategic about it — a sentiment that may be amplified by the fact that nearly half of Americans report being bombarded with donation requests. Philanthropy experts warn that not having a plan can lead to a “peanut butter spreading” approach, where you write checks and donate without thinking about how it aligns with what is truly important to you. Information on intentional giving can be found by visiting wellsfargo.com.
“Whether donating money, time, or talent, having a plan can block out some of the noise and help ensure that you give with intention,” says Buckley.
Source: StatePoint