What Philanthropy Looks Like in America: Important Stats and Facts

Philanthropy in America has long played a critical role in supporting societal needs, driving innovation, and addressing critical issues. Over the past five years, philanthropy has seen substantial shifts, influenced by everything from the COVID-19 pandemic to the changing demographics of donors.

The Scope of Philanthropy in America

Philanthropy in the U.S. is robust. In 2023 alone, Americans gave an estimated $557.16 billion to charitable organizations, according to Giving USA’s Annual Report on Philanthropy. While this represents a 2.1% decline when adjusted for inflation, it is a notable reflection of philanthropy’s continued prominence in the wake of global and economic challenges.

Breaking it down further, giving by individuals accounted for 67% of all charitable donations in 2023, totaling $374.40 billion. While this was a 2.4% decrease from the previous year when adjusted for inflation, it improved over 2022 as individual giving continues to dominate the philanthropic landscape. Corporate giving, meanwhile, rose by 3%, contributing $36.55 billion, driven partly by increased corporate social responsibility (CSR) efforts and disaster relief funding.

The causes that receive the most attention remain consistent. Religious organizations still lead the way, receiving 26% of all donations, followed by human services, which leapfrogged over education for second place at 16%. Human services, health, and international affairs have steadily risen since the onset of the COVID-10 pandemic. Education rounded out the top 3 with $87.69 billion in donations. 

COVID-19 and Its Impact on Giving

The COVID-19 pandemic dramatically reshaped charitable giving in the U.S. In 2020, the early months of the pandemic triggered an outpouring of support, with donors stepping up to help struggling families, healthcare institutions, and small businesses. By the end of that year, Americans had given a total of $471.44 billion, a 5.1% increase over the previous year.

During the pandemic, donations shifted dramatically toward crisis-driven philanthropy. Major donations supported health services, economic relief, and racial equity initiatives in response to the pandemic's disproportionate effects on communities of color. In particular, health-related donations surged, with significant increases directed toward hospitals, vaccine research, and healthcare workers.

One significant trend during this period was the rise of digital giving. With lockdowns and restrictions in place, people turned to online platforms to donate, resulting in a 21% increase in online giving during 2020. The ease and accessibility of digital platforms expanded the reach of philanthropy, enabling more individuals to participate and support causes they cared about.

Post-Pandemic Giving Trends

While the urgency of the pandemic spurred donations, the years following have seen a gradual return to traditional causes, albeit with some important changes. Mental health, climate change, and social justice have gained prominence as causes capturing donors' attention. As the world navigated the recovery phase, donors have increasingly focused on long-term challenges, particularly those exacerbated by the pandemic.

Environmental causes, in particular, have experienced significant growth. Donations to environmental and animal welfare causes have steadily increased, reflecting growing awareness of climate change and its impact on future generations. Similarly, mental health services have seen more support, with philanthropy increasingly targeting community health programs that address emotional well-being.

Changing Donor Demographics

One of the most notable shifts in philanthropy over the past five years has been the changing demographics of donors. Historically, older generations, particularly Baby Boomers, largely drove major donations. However, younger generations—millennials and Gen Z—are playing a larger role in philanthropy, with their giving preferences often reflecting personal values and causes like sustainability, social justice, and equity.

Now aged 25-40, millennials are more likely to engage in "cause-driven" philanthropy, focusing on areas such as climate change, racial equity, and mental health. Furthermore, Millennials are more likely to donate through online platforms, crowdfunding, and social media campaigns.

The diversity of donors has also expanded. A 2021 Bank of America study revealed that women, people of color, and LGBTQ+ individuals are increasingly prominent in the philanthropic landscape, contributing to more diverse and inclusive giving practices. This shift is leading to a broader array of causes being supported and the democratization of philanthropy.

The Great Wealth Transfer and Its Implications

Perhaps the most significant factor set to impact philanthropy in the coming decades is the Great Wealth Transfer—the transfer of an estimated $84 trillion from Baby Boomers to Millennials and Gen Z. This wealth transfer, the largest in U.S. history, is expected to fundamentally reshape the philanthropic landscape as younger generations inherit and begin to manage these assets.

The impact of this wealth exchange is already being felt, with younger donors demonstrating a preference for impact-driven philanthropy. Millennials and Gen Z are more likely to prioritize donations that show measurable results than previous generations, leading to increased interest in organizations that emphasize transparency and outcomes.

In addition, the Great Wealth Transfer is expected to lead to a shift in giving methods. While older generations often donated directly to large, established organizations, younger generations are more inclined to support grassroots initiatives and smaller nonprofits. This reflects their desire to be closely involved in the causes they support and see a tangible impact from their donations.

The Future of Philanthropy

Philanthropy in America is evolving, shaped by the pandemic, shifting donor demographics, and the upcoming Great Wealth Transfer. As we move forward, the landscape will likely become even more diverse and driven by younger generations keen on seeing their contributions' tangible impact. 

From corporate giving to individual donations, philanthropy remains a powerful force for addressing societal challenges and supporting communities. As the wealth transfer occurs, these changes will continue to reshape the causes that receive support and how Americans give.