BofA report reveals easing of wealthy households' charitable giving

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 U.S. 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.

“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.