Charitable Giving Surges in 2021

artursfoto / iStock.com

Amid the emotional and financial stress of the pandemic, Americans opened their hearts and pockets wider than they have in the past. Based on a DickersonBakker study of people who donated to at least one charitable organization in 2020, 90% of those polled said they expected to give even more through 2021. The study was released in the summer of 2021.

See: 3 Tax Advantages of Charitable Giving To Make Use of Before the End of 2021
Find: Find Out If You Can Really Write Off That Holiday Donation

In 2020, charitable giving reached record highs, growing 5.1% since before the pandemic. DickersonBakker, a charitable giving consultancy firm, reported that it was one of the steepest year-over-year increases since it started tracking.

When polled in 2021, 59% of respondents said they expected to give about the same as they did in 2020, while 31% said they planned to give “a little” or “substantially” more.” Only 10% said they planned to give either “significantly less” (2%) or “somewhat less” (8%).

The increase in charitable giving corresponds strongly with donors’ sense of financial security. Nearly 75% of donors said their financial security was the same or better in 2021 than it was in 2020, while 79% said their savings and investments had increased in the past year.

Make Your Money Work Better for You

See: How To ‘Future-Proof’ Your Finances in Light of COVID-19’s Lingering Effects
Find: What 2021 Meant for Women and Finances

Looking Ahead to Charitable Giving in 2022

In a blog post written just before Christmas, DickersonBakker noted that charitable giving should continue to rise in 2022, but probably not at the same rate it did in the two years prior. Rising interest rates projected in 2022 could mean that older Americans have more income to give away next year and could also spark more interest in annuities and trusts as giving vehicles.

Changes in tax laws could reduce some incentives to make charitable donations. However, if the new legislation increases the capital gains tax, it could incentivize high earners to donate stocks and real estate to offset capital gains.  

DickersonBakker also noted that corporate giving and donations made through foundations could grow in 2022 as business returns to usual and corporate profits return to pre-pandemic levels. The firm projected, “All indicators suggest that charitable giving will remain strong well into 2022.” If you’re looking to claim some last-minute tax deductions through charitable giving, you still have a few days to connect with your favorite qualified 501(c)(3) organization and make a contribution.

Make Your Money Work Better for You

More From GOBankingRates

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Best Bank Accounts of May 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.