Charitable donations continue to decline, down 2.1% in 2023, according to a new Giving USA report

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Charitable giving dropped 2.1% in 2023 after inflation, according to the most recent Giving USA report, the key findings of which were released Tuesday

Charitable giving dropped 2.1% in 2023 after inflation, according to the most recent Giving USA report, the key findings of which were released Tuesday.

For years now, nonprofits have been worried about the decline in the number of Americans who give. This year’s Giving USA report won’t allay their concerns: Giving by individuals in 2023 dropped 2.4%. The share of overall giving that came from individual donors continued to decline, albeit slightly, from 67.4% in 2022 to 67.2% in 2023. As recently as 2013, individual donors accounted for 73% of overall giving.

In 2023, foundations accounted for 19% of overall giving ($103.5 billion), bequests accounted for 8% ($42.7 billion), and the remaining 7% came from corporations.

While 2023’s drop in giving is discouraging, there are signs that charitable giving may finally be settling into a new normal after several years of being buffeted by unusual events like the pandemic and record inflation.

“The organizations that we’re working with saw a slight decrease” in 2023, says Rick Dunham, founder of Dunham+Company, a fundraising consulting firm. “A lot of it has to do with the economy. Donors pulled back in the past year, primarily because of inflation and personal economic situations.”

The economy was a big factor in giving last year, says Una Osili, associate dean for Research and International Programs at the Indiana University Lilly Family School of Philanthropy, which helps produce Giving USA.

“Giving rises as the economy improves,” Osili says. “The economy outperformed expectations. The stock market was also performing at