Most Americans prefer making charitable donations over gifts for themselves

Most Americans prefer making charitable donations over gifts for themselves
The Fidelity Charitable poll confirmed an upward trajectory in giving, while Vanguard Charitable updated a web tool that helps investors target donations toward homelessness and hunger.
NOV 30, 2021

Most Americans prefer a donation in their name to a favorite charity rather than a traditional holiday gift for themselves, a sign that charitable inclinations remain strong, according to a new poll from Fidelity Charitable.

The organization released the poll on Giving Tuesday, a global event geared toward boosting charitable donations. Another major sponsor of charitable funds, Vanguard Charitable, this week updated a tool on its website designed to help investors target charitable gifts toward addressing hunger and homelessness.

In its survey of 1,500 people, Fidelity Charitable found that 59% favored the charitable donation while 41% said they would want a gift for themselves. The poll also found that 64% will participate in philanthropic activities at the end of year, although 60% said they would put them off until after holiday shopping.

The Fidelity Charitable poll confirmed an upward trajectory in giving that started when the coronavirus pandemic created much need last year and has continued through this year. The poll showed that 90% of charitable investors who give at least $1,000 annually plan to maintain their donation level or “give notably more” this year.

Although the charitable sentiment was strong among those who participated in the Fidelity survey, most are not donating in the most tax-efficient way, such as using securities and other appreciated assets instead of cash to avoid capital gains taxes. The poll showed that 55% were aware of such approaches but only 18% used them.

“At such a busy time, it’s easy to put off year-end charitable decisions, but there are advantages to acting early,” Kristen Robinson, chief operating officer at Fidelity Charitable, said in a statement. “You can maximize your ability to support your favorite causes and your 2021 tax benefits using smart giving strategies. And while we encourage people not to run down the clock for practical reasons, we think it will be particularly meaningful to integrate charitable activity into holiday traditions this year after another challenging year that has reinforced the importance of supporting our communities and each other.”  

Charitable donations could be a good alternative to physical gifts given widespread supply-chain backups this holiday season, Fidelity Charitable suggested in a statement.

The upward trend in charitable donations has increased demand for investment advice about giving. Vanguard Charitable's Nonprofit Aid Visualizer, which was originally launched in October, was updated this week to add a feature that finds nonprofits operating in areas struggling with hunger and homelessness.

“At Vanguard Charitable, we’re focused on increasing giving and providing donors with innovative, transparent, and easy solutions that help them achieve their giving priorities — and NAVi for Hunger & Homelessness will do just that,” Rebecca Moffett, president of Vanguard Charitable, said in a statement. “This tool is a direct result of our donors telling us they’re focused on hunger and homelessness, two interwoven problems that have been greatly exacerbated by the ripple effects of Covid-19."

Latest News

Omaha-based RIA Stevens Capital Partners nears $1B, buys Dallas CPA firm
Omaha-based RIA Stevens Capital Partners nears $1B, buys Dallas CPA firm

The deal to acquire a 300-client tax firm built sets up much-needed succession for its 80-year-old founder, while joining a widening trend of tax service integration among RIAs.

Most Americans oblivious to Social Security’s projected demise
Most Americans oblivious to Social Security’s projected demise

New Nationwide Retirement Institute survey reveals eight in ten Americans agree Social Security needs fixing and how.

NewEdge advisors reshape client work with AI in weeks after Anthropic rollout
NewEdge advisors reshape client work with AI in weeks after Anthropic rollout

Advisor-led adoption has been rapid for tasks from translating annuity contracts into plain English to speedy webinar prep.

Kestra Financial names Kelly Apple as head of wealth management
Kestra Financial names Kelly Apple as head of wealth management

Austin, Texas headquartered firm taps former BlackRock managing director following an internal leadership shuffle.

Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first
Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first

InvestmentNews reported in 2017 that the IRS was scrutinizing the tax shelter land deals, called syndication conservation easements.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income