Americans Prioritize Giving, Even When Squeezed by Economic Uncertainty

December 06, 2024 at 01:00 AM EST

SPONSORED CONTENT -- (StatePoint) A new study reveals Americans’ relationship with charitable giving. While generosity is a core value for three-quarters of Americans, economic concerns have caused some to tighten their purse strings. Nevertheless, many Americans are open to advice for how they can prioritize philanthropy.

In a new national survey from Wells Fargo, 29% of Americans report that they have given less to charity this year compared to last and 51% feel they don’t have enough money to give to charity at all.

Even so, 67% of Americans reported giving something in the past year, with 54% saying they give to charity even though they don’t have a lot of extra money. The study found that economic concern is a significant factor in declined giving, with 52% of Americans reporting that their reduced giving is a direct result of the current economy.

“The data shows us that the pinch of rising costs is driving a moral dilemma. Many Americans are in a standoff between what they want to do and what they can do,” says Stephanie Buckley, head of Trust Philanthropic Services with Wells Fargo Wealth & Investment Management.

Despite this dilemma, the study reveals that among the two in three Americans who made a charitable donation this year, 53% still report giving the same amount to charity as last year and another 19% report giving more. In fact, 60% of these Americans are so committed to their giving that they list charity as part of their budget and 24% will go as far as to defer their own financial needs in order to give.

Happiness Drives Giving

Driving factors of American giving are largely altruistic. The most common motivations cited are that it makes them happy, it aligns with their personal values, and because they have a personal connection to a cause. Comparatively, financial benefits have very little to do with it, with only 10% of Americans giving for tax deduction purposes.

“There is a mistaken belief that many people give for selfish reasons, particularly among the affluent. In actuality, no matter the level of wealth, giving tends to almost always be driven by wanting to make an impact, “says Buckley. “In fact, anonymous giving continues to be a rising trend.”

Givers Want to Be Strategic

While 52% of Americans don’t get any advice about charitable giving, 57% want to be more strategic about it—a sentiment that could be amplified by the fact that almost half of Americans report being bombarded with donation requests. Philanthropic experts warn that not having a plan can lead to a “smear the peanut butter” approach, where you write checks and donate without thinking about how it aligns to what’s really important to you. Information about intentional giving can be found by visiting wellsfargo.com.

“Whether you are giving money, time or talent, having a plan can block out some of the noise and help ensure you give with intention,” says Buckley.

Wells Fargo Wealth & Investment Management (WIM) provides financial products and services through various bank and brokerage affiliates of Wells Fargo & Company. This paid advertisement was written by Wells Fargo Bank, N.A. Wells Fargo Wealth & Investment Management.

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Photo Credit: (c) Jacob Wackerhausen / iStock via Getty Images Plus

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Americans Prioritize Giving, Even When Squeezed by Economic Uncertainty

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