A smaller share of wealthy households donated money to charitable causes in 2022 amid rising economic uncertainty, according to a new report from Bank of America Corp.
About 85% of affluent US households made charitable contributions in 2022, down from 88% in 2020, according to a biennial study by Bank of America and Indiana University’s Lilly Family School of Philanthropy.
The decline follows a surge in giving in 2020, when the pandemic and social unrest fueled more donations. More recently, donors faced challenges with the S&P 500 Index dropping 19% in 2022 and interest rates rising. The average dollar amount of charitable donations from affluent households fell 19% last year from 2020, according to the report.
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“The economic uncertainty of 2022 brought forth pause and reflection in some charitable giving activities,” Bank of America said in the report.
More than 50% of wealthy households gave to causes supporting basic needs, while 39% gave to religious and spiritual services, according to the report. The data comes from a survey of affluent individuals with a net worth of $1 million or more, or an annual household income of $200 000 or more.
While the charitable donations decreased in size from 2020, the average was up by more than $5,600 from 2017.
“In many ways, including charitable giving activity, 2022 represented a break from the prior two years, though it is still unclear if things are returning to their pre-pandemic trends or if we are on a new path,” Bank of America said in the report.
© 2023 Bloomberg
