Why People Still Give During a Recession (and How Their Giving Changes)

When the economy takes a turn for the worse, many people cut back on spending, stash away savings, or focus solely on the essentials. But amid all that uncertainty, one trend quietly persists: people continue to give to charity. 

It might seem surprising, even counterintuitive. How can generosity survive when times are tough? And yet, year after year, we see that giving doesn't disappear. It changes, adapts, and, in some cases, grows stronger.

The Resilience of Charitable Giving

Historically, giving does tend to dip slightly during economic downturns, but not as much as you might think. Donations might decline in dollar amount or frequency, but they rarely vanish altogether. 

After the 2008 recession, for example, charitable donations in the U.S. decreased modestly, yet they rebounded quickly in the following years. During the early days of the COVID-19 pandemic, giving initially dipped, then surged, particularly for health, food security, and racial justice causes.

Why People Still Give – Even When Money is Tight

So, why do people keep giving when money is harder to come by?

One key reason is that charitable giving isn’t just about finances. For many, it's tied to deeply held values, faith, community ties, or a moral sense of responsibility. When people feel overwhelmed by economic instability, giving becomes a way to retain a sense of agency. It’s a statement: “Even when I don’t have much, I still have something to offer.”

Another reason why people continue to give is that crises trigger compassion. During a recession, the need becomes more visible as more people experience homelessness, hunger, or unemployment. 

Giving becomes a charitable act and a direct response to shared hardship. People give because they see themselves or their loved ones in the stories of those who are struggling. They give to help others stay afloat, sometimes just as they themselves are treading water.

There’s also a psychological aspect. Behavioral economists refer to the “warm glow” effect, the emotional satisfaction we feel when we help others. That glow can be especially meaningful and comforting during dark times. 

Giving becomes a source of comfort and connection in an uncertain world. It helps restore a sense of purpose, reinforcing that we’re still part of something bigger than ourselves.

Faith-based motivations also play a role. Religious communities often emphasize consistent giving regardless of external circumstances. Tithing or donating to faith-based charities becomes a form of spiritual discipline that doesn’t necessarily shrink when the economy does. Similarly, local connections can inspire ongoing support, as donors want to strengthen their own communities and take care of their neighbors.

How Donor Behavior Changes in a Recession

While the desire to give almost always endure, how people give does change somewhat during a downturn.

One major shift is that fewer people give, but those who do may give more. According to recent data, ultra-wealthy individuals have continued and, in some cases, increased their charitable contributions. 

In 2023, the top 1% of donors contributed a greater share of overall charitable dollars, even as the total number of individual donors declined. This growing concentration of giving presents opportunities and challenges for nonprofits that rely on a broad support base.

Another change is a shift toward practicality. During recessions, donors often prioritize causes that meet urgent, basic needs—such as food banks, housing assistance, healthcare access, and mental health services. Local giving also sees a boost, as donors want to see tangible, immediate results in their own neighborhoods. The "think global, act local" mindset becomes even more pronounced during economic downturns.

Strategic giving also takes center stage. Donors want to make sure every dollar counts. They increasingly turn to tools like Charity Navigator to assess nonprofits' financial health, transparency, and impact. Some even use donor-advised funds or platforms that allow them to automate recurring donations in manageable amounts, ensuring consistent support without financial strain.

The Role of Technology and Giving Platforms

Technology has made it easier than ever to give intentionally, even during tight financial periods. Microdonation platforms allow donors to contribute small amounts regularly—$5 here, $10 there—which can add up to a meaningful impact over time. Donors can also use platforms to “give while they shop” or round up spare change from purchases. These tools make giving less intimidating and more accessible to people at all income levels.

Another trend is the growth of “giving-as-a-service” platforms that enable companies and individuals to build charitable contributions into their regular financial habits. This tech-driven philanthropy makes it easier to give even when personal budgets are under pressure.

Generosity Endures

Giving during a recession is about more than dollars and cents. It reflects our shared humanity and the ways people continue to show up for one another, even when things are hard. Whether it’s a billionaire donating millions or a retiree giving $10 a month, every act of generosity matters.

The economy may rise and fall, but the impulse to help, to connect, and to make a difference remains strong. And that’s something worth holding onto.