US Donors See Five Consecutive Years of Decline
The Economist of the United Kingdom analyzed on the 23rd (local time) that the decline in donations in the United States is being influenced simultaneously by political, economic, and religious factors.
On the 23rd (local time), a Christmas tree was erected in front of the United States Capitol in Washington DC. Photo by Reuters Yonhap News
According to the Fundraising Effectiveness Project (FEP), which analyzes trends in nonprofit donations in the US, the number of donors in the US from January to September this year decreased by 3% compared to the same period last year. This marks a five-year consecutive decline since 2021. Notably, even the wealthy are increasingly cutting back on donations. According to data from Bank of America, the proportion of households with assets of $1 million or more that made donations fell from 91% in 2015 to 81% last year.
The Economist analyzed that the decline in donations is due to political, economic, and religious reasons. During his second term, the Donald Trump administration began cutting foreign aid, which has brought international relief funds to the brink of depletion.
Within the United States, the high cost of living caused by inflation has also become a factor making people hesitate to donate. According to a survey conducted last year by the global charity organization CAF, about 60% of respondents cited "economic burden" as the reason for not making donations.
The Economist also noted that, from a religious perspective, Americans' faith has weakened compared to the past, resulting in donations to religious organizations accounting for less than a quarter of total donations last year.
There is little expectation that donations will increase in the future. The newly emerging ultra-wealthy are generally young tech entrepreneurs, and they tend to be more interested in growing their assets than in giving to charity. As a result, even though massive donations continue from the world's top billionaires-including the Bill & Melinda Gates Foundation's $200 billion pledge over 20 years-it remains uncertain whether this will inspire the middle class to donate, according to The Economist.
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