Gifts from America’s wealthiest donors increased 19% during 2022 compared to pre-pandemic levels. Although 85% of donors in those households reported giving, it was 3% fewer households than in 2020. The giving averaged $34,917, up from $29,269 in 2017, although a decline from $43,195, the average amount given in 2020 during the pandemic.
Of those wealthiest Americans who did not give to charity during 2022, 44% responded the need to take care of family took precedence, up from 27% who said that five years ago.
Much of this giving and associated volunteering is being driven by women, according to data in a study conducted by Bank of America Private Bank and the Indiana University Lilly Family School of Philanthropy at Indiana University and released today. The 2023 “Bank of America Study of Philanthropy: Charitable Giving by Affluent Households” surveyed 1,626 wealthy Americans.
A panel was convened in New York City to present the data which included Una Osili, Ph.D., associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy; Dianne Chipps Bailey, national philanthropic executive at Bank of America Private Bank; Liz Elting, founder and CEO of The Elizabeth Elting Foundation, businesswoman and author; and, William “Bill” Jarvis, national philanthropic executive at Bank of America Private Bank.
The survey is based on a nationally representative random sample of 1,626 affluent individuals with a net worth of $1 million or more (excluding the value of their primary home) and/or an annual household income of $200,000 or more. The median wealth and income levels of the respondents exceeded the threshold for participation at $2 million and $300,000, respectively.
According to Jarvis, the average worth of the participants was $31 million with an average annual income of $500,000. Overall, 81% of giving came directly from personal assets and income. These were asked as one thing combined, as the point of the question was more to get at the differences between vehicle giving vs personal giving, he said.
Data shows that 96% of donors gave with cash/check/credit card, and 4% gave with publicly traded securities, but these are not mutually exclusive, nor are they indicative of how much giving came from either, he said.
In 2022, 86% of affluent women indicated that their households gave to charity compared to 85% of affluent men, although researchers deemed the difference as insignificant. Women sometimes or always consciously aligned their purchasing decisions with their values (85%), and 10% of female respondents participated in sustainable/impact investing.
Additionally, significantly more affluent women than men volunteered during 2022 (42% of women to 33% of men). However fewer affluent women who volunteer serve on nonprofit boards than men who volunteer (30% and 16%, respectively). Women are more likely than men (24% and 17%, respectively) to support women’s and girls’ causes and/or organizations. One intended purpose of giving to support women and girls cited by the donors — reproductive health/rights — was up significantly during 2022 compared to five years earlier (51% of affluent individuals who gave to women’s and girls’ causes in 2022 gave for this reason, compared to 36% in 2017).
That resonates with Elting, whose foundation targets education, entrepreneurs and female entrepreneurs in marginalized communities in particular. She called education “the great equalizer.”
The top causes to which the affluent reported giving during 2022 were basic needs (50.7%), religious/spiritual (39.3%) and health or medical research (30%). But when it came to percentage of total giving, religious/spiritual was 39.2%, higher education came in at 23.9% and then basic needs at 10.2%. All other causes were in single digits.
This year’s study, conducted in January 2023, reflects charitable giving and volunteering strategies in 2022. Many of the questions asked were similar or identical to questions asked in previous studies in this research series. Some areas were expanded and topics added to gain a deeper understanding of giving patterns or as new issues emerge.
As the percentage of donor households has been going down, the average amount given to charity by affluent households has generally been going up over time. The average amount given to charitable organizations by affluent households during 2015 was $25,509, and in 2017 that average increased to $29,269. Most recently, in 2022, affluent Americans gave $34,917, on average.
“Observers have questioned how economic shocks and uncertainty will affect philanthropy in America, even among affluent donors,” said Osili. “This ongoing body of research serves as an important barometer of giving trends and provides insights into the extent to which giving behaviors may be returning to their pre-pandemic trends, or whether we are on a new path.”
In 2022, 37% of affluent households volunteered their time and talents to charitable organizations and causes. This is up from the 30% who volunteered in 2020, when social distancing and other COVID-related challenges kept many individuals from volunteering. While volunteering has not yet returned to 2017 levels (48%), affluent individuals are re-engaging. Almost all (93%) of those who volunteer say that it is personally fulfilling. Moreover, people who volunteer are more likely to give to charity than those who do not volunteer (94% and 80%, respectively), and the median gift amount by volunteers is nearly four times more than that of non-volunteers.
To the wealthiest Americans, it isn’t about writing a check with a lot of zeros. More than one in five (22%) affluent households have a giving vehicle and 54% of affluent households with a net worth between $5 million and $20 million have or plan to establish a giving vehicle within the next three years.
Two-thirds of affluent donors using online donor-advised fund recommendations to facilitate their giving consider this type of digital tool somewhat or very important in shaping and facilitating their households’ charitable giving. Donor-advised funds were used by just 1 in 20 households and the top reason was for tax purposes. Black/African Americans (10%) were significantly more likely to have or plan to establish a donor-advised fund and more likely to use online donor-advised fund recommendations to facilitate their giving compared to all other racial/ethnic groups combined (5%).
The full report is available at https://philanthropy.iupui.edu/research/current-research/index.html#affluent
