After slowing during the COVID-19 pandemic, it appears philanthropy is making a comeback.
BNY Mellon Wealth Management reported that charitable giving in the U.S. increased in 2021. More than 500 of the bank’s clients made charitable donations last year for a total amount of $55 million.
This increase brings charitable donations back to a level comparable to pre-pandemic levels. Following the pandemic and shutdowns, charitable giving had decreased.
Why it’s news
Charitable giving decreased in 2020 in the midst of the COVID-19 pandemic and ensuing shutdowns. The philanthropic spirit is not dead in the U.S. and appears to be reviving, even in the face of rising inflation and economic uncertainty. Private charity is part of the American DNA, when private citizens look after those in need rather than placing that burden on the government.
The giving spirit seems to be making a comeback, despite inflation and economic uncertainty.
- Reports from the Giving USA Foundation and Indiana University Lilly Family School of Philanthropy, charitable donations rose 4% in 2021.
- Donations through BNY Mellon were 27% higher than last year. BNY had seen a 36% decline following the pandemic.
- BNY Mellon’s average reported gift size in 2021 was $109,000, similar to donation levels in 2019.
- 61% of charitable gifts through BNY were for education. Social services made up 26% and healthcare 6%.
- BNY Mellon’s grant fund increased 93% and total gift amount increased 55%.