Philanthropy Insights: Who Are the Most Generous Donors in the U.S.?
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How much do you donate to charity each year? I’m not referring to the bags of old clothes or the food items you contributed during your workplace's holiday drive. I'm talking about the actual cash donations made via credit card or check, the kind that requires you to sign your name.
To delve into this, we’ll explore various demographics including age, religious affiliation, income, and geographic location within the United States.
Charitable Giving by Age Group
Millennials: Comprising 25.9% of the U.S. population, they donate an average of $481 annually, with 84% supporting nonprofits dedicated to: - Children - Health and medical initiatives - Local churches - Human rights organizations
Generation X: Making up 20.4% of the population, they contribute around $732 each year, with 59% being regular donors. Their philanthropic interests include: - Animal welfare organizations - Children’s charities - Social services - Local churches
Baby Boomers: This group constitutes 20.5% of the U.S. population and donates an average of $1,212 per year. Their preferred charitable causes are: - Social services - Animal welfare - Children - Human rights and international affairs - Local churches
Silent Generation/Greatest Generation: Representing about 11.8% of the population, they are the largest contributors, giving approximately $1,367 annually. A remarkable 88% are consistent donors, favoring organizations that support: - Veterans - Local social services - Emergency and disaster relief - Local churches
Charitable Contributions by Religious Affiliation
Various studies reveal that Jewish individuals lead in charitable giving among religious groups, contributing an average of $2,526 each year, while Muslims reportedly donate about $3,200 annually. According to Christianity Today, Protestant donations average $1,749, with Catholics contributing around $1,142—both groups donating approximately 2.5% of their incomes.
Jewish and Muslim donors tend to support social organizations and human rights causes, while Christian contributions vary by denomination, with roughly 32% of their donations directed to local churches or faith-based charities.
Notably, only 5% of individuals from any religious background donate consistently, and households with incomes over $75,000 are the least charitable. Research by Christian Smith and Hilary Davidson at the University of Notre Dame indicates that a mere 2.7% of people, regardless of their faith, adhere to the traditional practice of tithing 10% of their income.
Charitable Giving by Income Levels
A surprising finding from Philanthropy Today indicates that individuals earning less than $50,000 are the second-highest percentage of givers. In contrast, those making between $100,000 and $500,000 are the least charitable in terms of income percentage. While higher earners donate larger sums, lower-income individuals contribute a larger portion of their earnings. For instance, those earning $20,000 or less give 1.2% of their income, while earners between $20,000 and $30,000 contribute 0.85%. Conversely, the highest earners give only about 0.6% of their annual income.
Regional Charitable Giving Trends
According to U.S. News & World Report and studies by WalletHub, states like Utah, Minnesota, and Maryland rank highest in charitable donations. Pennsylvania, Virginia, Minnesota, and Ohio also feature prominently in the top ten.
WalletHub analyzed all 50 states based on volunteerism and charitable contributions across 19 metrics evaluated on a 100-point scale. Additionally, Smart Assets conducted a survey examining the most charitable areas in the U.S., determining that Utah, particularly Salt Lake City, is the most philanthropic metro area, likely influenced by the emphasis on tithing within The Church of Jesus Christ of Latter-day Saints.
Other notable states identified as charitable include Oregon, Washington, Arkansas, Oklahoma, Georgia, Maryland, Washington D.C., and Virginia.
Contributions from Major Donors
The Robb Report noted that the 25 most generous philanthropists in the U.S. donated $27 billion to charities in 2022, surpassing the combined total for 2021 and 2020. Forbes estimates these donors have collectively given $196 billion over their lifetimes.
The top five mega-donors are: 1. Warren Buffett: The CEO of Berkshire Hathaway, known as “the Oracle of Omaha,” donated $5.4 billion in 2022 and has given a total of $51.5 billion, primarily focusing on health and poverty alleviation.
- Bill Gates and Melinda French Gates: Co-founders of the largest private charitable foundation, they have donated around $38.4 billion, with a focus on health and poverty.
- George Soros: With a net worth of approximately $8.6 billion, he has given around $18.1 billion to causes like education, human rights, and justice reform.
- Michael Bloomberg: The former New York City mayor has contributed over $12.7 billion to non-profits focused on public health, gun safety, and climate change, with donations exceeding $1.6 billion last year.
- MacKenzie Scott: The former wife of Amazon founder Jeff Bezos, she has donated over $8.6 billion to various organizations, focusing on public health, racial justice, and gender equality.
Conclusion
While it’s easy to focus on wealthy individuals and large corporate donors, Philanthropy Magazine reveals that only 15% of charitable donations come from foundation grants, and just 5% from corporations. The majority—80%—comes from individuals like you and me.
In an ideal scenario, charities wouldn’t be necessary. We would have solutions for diseases, and everyone would have equal opportunities in life. Since this isn’t the reality, philanthropic efforts aim to bridge the gaps our society has not addressed.
It’s essential to recognize the significance of individual donations, regardless of size, as they collectively make a difference. As Margaret Mead famously stated, “Never doubt that a small group of thoughtful committed individuals can change the world. In fact, it’s the only thing that ever has.”
Information for this article was sourced from The Philanthropy Roundtable, Philanthropy Today, U.S. News & World Report, WalletHub, Forbes Magazine, and other charitable giving resources.