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

Featured video

INTV

DOL fiduciary rule opponents and supporters sound off on Jan. 1 deadline

Senior reporter Mark Schoeff Jr. and managing editor Christina Nelson discuss the latest batch of comment letters on the regulation, this round focused on timing of the full implementation date.

Latest news & opinion

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

Eduardo Repetto to leave Dimensional Fund Advisors

Gerald O'Reilly, currently co-CIO, will take over as co-CEO with David Butler.

Alternative strategies boomed after crisis, but haven't been tested

Because the S&P 500 has outperformed, convincing clients they need protection is a hard sell.

7 ways advisers fixed clients' biggest financial dilemmas

Sometimes it takes creativity, along with knowledge and outside help, to get a client out of a jam.

LPL Financial buys NPH, a broker-dealer network with 3,200 advisers

The deal, part of which is based on the advisers and revenue that eventually will move from NPH, could potentially cost LPL $448 million.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print