(image from pexels.com)
Americans think highly of their own altruistic leanings — much more highly than facts warrant. First, the percentage of their household income they donate has fallen from 1.95% to 1.22% between 2017 and 2025, or a roughly 37.5% decrease in eight years. And second, when asked to estimate how much they give, their guesses are on average 277% more than their actual donations.
This false perception presents a challenge for fundraising professionals. As the authors of The Average American Donor: Far Less Generous Than They Think, a new study from Grey Matter Research & Consulting (from which these figures are drawn) write, “If you think you’re already giving far more generously than you actually are, why would you consider increasing your generosity?”
What’s even more disturbing to the authors is the drop in average donations in actual dollar amounts. The donations have dropped while incomes have risen over that eight-year period.
The authors excluded ecumenical giving, such as to churches, mosques or temples, as donation patterns to these types of institutions differ than those to other nonprofits. In many religious-focused organizations, tithing, a word that literally means giving one-tenth of one’s income, is considered a standard. Nearly 1,000 qualified survey respondents gave at least $10 to a non-religious nonprofit during the past 12 months. This group gave a median of $350 per person, with a few large donations skewing the average gift to $1,590 per person.
The saying “Give ‘til it hurts” has apparently fallen out of vogue. Only 6% of respondents to the survey underpinning the report believe their donations represent a significant financial sacrifice for themselves, while 40% say “it’s no sacrifice at all.” While four in 10 said they should give more than they do, three-quarters of those who give at least 2% of their household income believe their giving levels are appropriate.
Respondents’ reasons for not giving more might offer clues for how to address their reluctance. Nearly six in 10 (58%) said their financial situation restricted their giving, while 54% had concerns about donor-supported organizations or giving.
Despite their reluctance, donors are more than willing to pat themselves on the back for their donations, with those pats being harder than deserved. Asked to estimate their giving percentage, respondents put their estimated percentage of donations at 4.6%.
One finding offers insight into how fundraising professionals might address donors. The study uncovered a direct correlation between donors’ perceived ability to indulge in luxury purchases and amount contributed. Respondents indicating their incomes allowed them to only meet their basic needs gave an average of 0.73% of their income, while those saying they could afford just a few luxuries gave 1.14% of their income, those believing they could afford “a number of luxuries” giving 1.42% and those saying they had “plenty for many luxuries” giving 1.67%.
Given that the biggest jump from one level to the next came between “only basic needs” and “just a few luxuries,” one might wonder whether fundraising language geared toward assuring potential donors that they were more able to indulge themselves than they thought would have an impact on giving levels.
Respondents were also asked what they would do with funds not given to charity. Just more than one-third (34%) would have used their funds for necessities such as household expenses or paying off debt. Another 16% would have made indulgent purchases, 4% would have given the funds to friends or family, and 44% would have put it into savings.
Overall, there is room to improve funding levels among donors. While 2% indicated they give a lot more than they should and 7% said they give a little more than they should, 29% believe they should give a little more than they do and 11% said they should give a lot more. Just over half (51%) said they give about the right amount.
The other major insights into potentially upping donation levels came when donors were asked the major reasons why they didn’t give more. While the most-frequently given answer was unsureness about their financial future (42%) and nearly one quarter (24%) said they simply couldn’t afford to, 25% said they can’t find organizations they trust, 23% are not sure where their donations will make a difference, another 23% said they never think about it, 21% “need to learn generosity,” 19% are overwhelmed by the number of donation options they have, 16% can’t find organizations that matter to them, 10% say their income varies month to month and 7% believe their spouse or partner would opposed a donation.
A full copy of the report is available here: https://greymatterresearch.com/average-american-donor/
