Charitable giving rises – and closes in on 2007 record

In 2013, U.S. adults donated $1,016 per capita, and some research suggests people want to give more.

Jun 17, 2014 @ 11:45 am

By Alessandra Malito

+ Zoom

Bills to pay and budgets to abide by didn't stop Americans from giving to charities last year.

According to the Giving USA annual report, total charitable giving increased by 4.4% to $335.17 billion in 2013, including a rise of 4.2% in giving from individuals. The single largest influence on this increase was the additional $9.69 billion in gifts made by individuals over 2012.

While the total number may not be as high as it was before the recession in 2007, when it reached $349.5 billion, contribution totals have increased by 12.3% since the recession ended in 2009.

People primarily donate to charity “because they want to give back to their communities; they want to help others who are in need,” said Kim Laughton, president of Schwab Charitable. “And at a certain level, it's also a tax advantage.”

In 2013, U.S. adults donated $1,016 per capita, while on average, U.S. household giving reached $2,974. In the last decade, total giving has increased by $34.6 billion in inflation-adjusted dollars. If it keeps up at this rate, the U.S. could see a return to its peak 2007 level of giving in one or two years.

Some research suggests that people want to give even more, and in more coordinated ways, with help from financial advisers. In fact, a study by the company found that clients wanted more conversations with their financial advisers about philanthropy, aid Jim Coutre, a partner at The Philanthropic Initiative. While some financial advisers focus more on the technical aspects of charitable giving, clients want to talk about the bigger picture of giving back financially.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Will ‘cyborg’ investing models be the perfect combination for investors?

Meb Faber of Cambria Investments is certain that at some point everyone will move towards a robo plus adviser model. Hear how these changes are shaking up the industry.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

How to save retirement planning from tax reform

Losing big deductions, even in lieu of a larger standard deduction, may cause taxes to rise in retirement.

Advice firms in a tricky financial position

As revenue growth dips and salaries rise, nearly 90% of firms are at or near capacity.

In a turnaround, Wells Fargo Advisors sees slight bump in headcount

Racked by a scandal in its retail banking unit, Wells still managed to add 37 new advisers in the third quarter, a small number but an improvement nonetheless.

Social Security benefits to increase by 2% in 2018

Largest cost-of-living adjustment since 2012 may be offset for some by higher Medicare premiums.

House panel approves legislation to kill DOL fiduciary rule, and 2 other adviser-related bills

The measures, which include revising the accredited investor standard and safeguarding those who report elder financial abuse, head to the House floor but face varying degrees of difficulty in the Senate.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print