US charitable giving falls in 2022 for only fourth time in 40 years as economic headwinds weigh
Total charitable giving has only dropped 3 other times in the past 40 years
FOX Business' Madison Alworth speaks with The Salvation Army's U.S. National Commander Kenneth Hodder on how inflation has impacted the annual Red Kettle campaign.
Charitable giving in the United States declined in 2022 for the fourth time in four decades, according to a report released Tuesday.
Total giving in 2022 – from individuals, foundations or corporations – fell 3.4% to $499.3 billion in current dollars due to stock market volatility and persisting economic uncertainty, according to the Giving USA report. This equates to a drop of 10.5% when adjusted for inflation.
Total charitable giving has only dropped three other times in the past 40 years in current dollars. First in 1987 followed by 2008 and 2009, according to Giving USA.
The drop in donations in 2022 comes after the U.S. had the two best years on record for charitable giving, according to the Indiana University Lilly Family School of Philanthropy.
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In 2021, total giving surpassed $500 billion for the first time, according to the school, which is also the Giving USA report’s lead researcher.
Kristi Wallace ringing the Salvation Army bell in front of Foley's in Pasadena, where she volunteered her time. (Karen Warren/Houston Chronicle via Getty Images / Getty Images)
However, the results could have been much worse given the challenging economic climate during late last year, according to Giving USA Foundation chairman Josh Birkholz.
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For instance, Giving USA cited a 19.4% drop in the S&P 500, or 25.4% adjusted for inflation, which was the first double-digit decrease since the Great Recession. On top of that, there was flat growth in disposable personal income, while inflation notched a 40-year-high.
Volunteers package and distribute food for those in need at the New York Common Pantry on 109th Street, Wednesday, Dec. 1, 2021, in the Manhattan borough of New York. (AP Photo/John Minchillo / AP Newsroom)
Still, Americans still gave nearly a half trillion dollars, demonstrating "how essential they view the nonprofit sector and its ability to solve big problems," Birkholz said.
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Una Osili, an associate dean for research and international programs at the Lilly Family School of Philanthropy, noted that aside from inflationary pressures, "donors may not have been as compelled to respond to immediate needs as they had been during the early days of the COVID-19 pandemic or during the Great Recession."
The Associated Press contributed to this report.