As Giving Tuesday Approaches, 17% of Americans Plan To Increase Donations — Experts Advise You Do the Same
The Giving Tuesday movement celebrates its 10th anniversary this year as a way for holiday revelers to donate to charities and non-profits following Black Friday and Cyber Monday. That spirit appears to be in full force this holiday season, with nearly one-fifth of American adults planning to give more money in 2022 than they did in 2021, according to a survey from Edward Jones.
Even in a year of historically high inflation, the survey of 2,210 adults found that 17% of respondents plan to increase donations this year vs. 10% who plan to give less. Of those who plan to donate more, 39% cite social/political issues as the catalyst. The vast majority, 68%, plan to donate a similar amount of money to charity in 2022.
Nearly all Americans (93%) donate at least once a year, the survey found. Those who do are mainly motivated by altruism. About two-thirds (66%) of respondents said it is important to help others in need. Half want to make an impact on something that matters, while 40% want to have a positive impact on their communities.
Giving Tuesday provides a golden opportunity for people to donate to charity because so many resources are available to help you find the right one. The event got its start in 2012 as a way to encourage people to do good. Since then, it has grown into an independent nonprofit and global movement. This year it takes place on Tuesday, Nov. 29. For more information and to find a list of charities, visit the Giving Tuesday website.
If you do plan to donate on Giving Tuesday — or any time during the year — it’s a good idea to have a plan in place to ensure you give the right amount while also ensuring your own financial security.
One thing to keep in mind is that giving can take many forms depending on your personal financial situation, said Zach Gildehaus, Senior Analyst of Client Needs Research at Edward Jones. If you don’t have the resources to give money, you can always volunteer your time or donate lightly used household items.
“It’s important to consider charitable giving in the context of your overall financial strategy, as some types of assets can be more beneficial to give to charity vs. allocating to other goals,” Gildehaus told GOBankingRates in an email. “Many people may not be aware of the many options available when it comes to giving.”
He cited a donor-advised fund, which is a charitable-giving tool that lets you make an irrevocable contribution to the fund and receive a tax deduction that year. The money is invested and grows tax-free over time. You also can make donations from the fund to the IRS-approved public charities you want to support and even involve your family.
Another good move is to hire a financial advisor to help out — especially if you plan to make large monetary donations.
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“A trusted financial advisor can help you weigh important tradeoffs around what, how, and when you give, and help you understand all of the resources and approaches available,” Gildehaus said. “Our survey found that those who work with a financial advisor feel more successful and excited after donating than those who do not.”
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