The Percentage of Households Donating To Charity Fell Among All Racial and Ethnic Groups Over Two Decades

The Giving Environment report from the Indiana University Lilly Family School of Philanthropy highlights a consistent decline in U.S. households contributing to charity over the past two decades. This trend has affected families across various racial and ethnic backgrounds, with data indicating declines in household giving rates among communities of color from 2000 to 2018. The study reveals that while there is an overall decrease in participation across all groups, variations exist in the timing and extent of these declines. Economic and non-economic factors, including changes in religious participation, informal giving, and a decrease in interpersonal trust, shape philanthropic behavior.

The report points out that religious giving rates for all groups dropped between 15% and 25%, and the 2008 recession served as a pivotal moment in influencing philanthropic behavior differently among racial and ethnic communities. Economic shocks and diminishing interpersonal trust were identified as factors disproportionately affecting people of color. The report underscores the importance of addressing the racial wealth gap and advocates for engaging donors of color in culturally relevant ways to promote a more inclusive and equitable society. Nonprofit professionals are encouraged to leverage these findings for meaningful engagement with donors of color, and the report includes case studies illustrating diverse communities’ generosity practices, such as funding collaboratives, giving circles, and partnerships with culturally relevant institutions.

For more information see Eric Grossman “The Percentage of Households Donating To Charity Fell Among All Racial and Ethnic Groups Over Two Decades”, Barrons PENTA, November 14, 2023.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.