The Pentera Blog
Charitable Bequests Were Up in 2022, Giving USA Reports
Charitable donations by bequest were up in 2022 despite an overall drop in charitable giving across the country, according to Giving USA’s newest annual report.
The report found that bequests reached $45.6 billion in 2022—up 2.3% from the year before.
The study does not show the recipients of bequest dollars, which made up about 9% of all 2022 charitable gifts. However, many charitable sectors saw increases in donations received in 2022, including religion, health care, international aid, foundations, and arts, culture, and humanities. Donations declined, however, to education, human services, public-society benefit organizations, and environmental/animal nonprofits.
Overall, charitable giving reached $499.33 billion in 2022—a decrease of 3.4% compared with 2021 in current dollars.
Although declines in overall charitable giving from one year to the next are rare, Giving USA notes that contributions in 2020 and 2021 had set a very high bar. In each of those years, donors opened their wallets generously in response to the COVID-19 pandemic, the economic slowdown, and the widespread campaign for racial justice. Giving in 2022 also faced strong economic headwinds in the form of declining stock values and a spike in inflation, the report notes.
Giving USA 2023 also makes clear how negatively inflation has affected the purchasing power of charitable dollars raised. When inflation is taken into account, the only two charitable sectors that saw increases in donations in 2022 were international affairs and gifts to foundations. Prodded by the Russian invasion of Ukraine, donations to international causes rose 10.9% in 2022 while contributions to foundations were up 10.1%.
Notably, the report showed a significant decline in donations by individuals last year. Individuals gave an estimated $319.04 billion in 2022—a drop of 6.4% from 2021 in current dollars.
The report also revealed the continued influence of mega-donors. Approximately 3% of all money donated in 2022 ($13.96 billion) came from just six individuals and couples, the report shows.
Giving USA 2023 was researched and written by the IUPUI Lilly Family School of Philanthropy.
