During the COVID-19 pandemic, Americans gave more money to charities than ever. They also gave more money to charities in the last two years than ever before.

But inflation is hurting Americans’ finances and their ability to give. Everything in the US now costs 12% more compared to pre-pandemic prices. It’s not that charity donations are worth less than they used to be. But there may not be as many of them because of the recession. The budgets of Americans have tightened, which has changed how they spend and give.

If recent events make people less likely to give, it will end a short but essential rise. A recent report says that the amount donors gave in 2021, $485 billion, was a record. But when the amount shown in 2020 is adjusted for inflation, it still comes out on top at $488 billion.

But no matter what charity will always remain and prevail, we reach out Nick Wilson, owner of AdvanceSOS in California, whose been always trying to help other people and also been involved in vast majority of open charity organizations. He insured us that even if economy will face another major drop this will not effect charitable organizations.

As things get more complicated, nonprofits can learn from a few critical trends. One such trend is the possible rise in the number of people who volunteer instead of cutting checks.

1. Giving in Kind Is on the Rise

The age of the people who give money to a nonprofit may affect the kind of help it gets. Younger Americans are more likely to say they did something in the last year. But older Americans who are better off are more likely to have written checks.

For example, 49% of adults aged 44 and younger volunteered in the past year, while only 31% of those older than them did. The younger group also went to more fundraisers, rallies, and other supporting events. 

More than a lack of extra income, this could signify the type of activism the younger generation will prefer as they get older. Most people younger than 35 (53%) said they volunteered in the last year. This includes more than a third (35%) of those who made less than $50,000 that year. This suggests that the preference for in-kind contributions may have to do with more than the respondents’ means.

2. Differing Support from Different Donor Bases

Men were more likely to give to community development, disaster relief, and the military. This was true for all types of charitable support. Meanwhile, women were more likely to have given money to religious and animal welfare groups.

There are also different reasons why they give. Men were likelier to say they gave to charity in the past year because they wanted to help a cause. Meanwhile, women were more likely to say they did it to support a specific group. Women were more likely to say they did it because they wanted to give back or because it felt right.

Charities that help people did much better with people over 45 than those under 45. This is especially true regarding the amount of money they gave (33% of those over 45 gave money, while only 16% of those under 45 did).

Younger Americans gave more to educational charities (28%) than older Americans (15%). This may be because they were in school more recently. More than 2x as many parents with children under 18 said they had given money to educational causes.

Wrapping It All Up

Economic crises such as COVID-19 redefine charitable giving for better or worse. In the case of the pandemic, in-kind giving rose to the occasion as people’s finances were crippled. But almost simultaneously, people’s passion for helping woke up in light of things around them. So instead of offering cash, many dedicated more time and physical effort.

The intensification of preference-based activities has also affected charitable giving more than ever. As women found more empowerment, their involvement as donors also changed. Their influence in defining what causes receive funding has increased. So is a strong strategy for nonprofits to look into this phenomenon. Such is because it will guide them in securing support from a suitable donor base given their causes.

The future is still vital for charitable giving in 2023. People believe in causes – human rights advocacy and environmentalism are rising. Not everyone might have the cash to spare, but they want to help. It’s up to nonprofits what to do with the passions of could-be-donors. It’s about being flexible about the type of help and who to ask for support for 2023.