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| Meridian Magazine |
"I'm afraid the only safe rule is to give more than we can spare."
— C. S. Lewis
America remains a generous country. In 2025, Americans gave an estimated $617.20 billion to charities, up 5.7% from 2024, according to Giving USA. Adjusted for inflation, total giving grew 3.0%.
Where did the donations come from?
Individuals accounted for 64% ($394.20 billion), up 4.1%; foundations 19% ($117.15 billion), up 5.7%; bequests 10% ($62.19 billion), up 19.7%; and corporations 7% ($43.67 billion), up 3.1% from 2024.
Where did the charitable dollars go?
The top five recipient categories were Religion (mainly houses of worship) at $151.58 billion, up 2.4%; Human Services at $99.50 billion, up 5.3%; Education at $92.01 billion, up 11.7%; Foundations at $79.05 billion, down 16.2%; and Public Society Benefits at $72.06 billion, up 11.6%.
These figures are combined estimates, not a precise tally of charitable giving.
Some gifts from lower- and middle-class households were no doubt made with great sacrifice, as those givers often donate a higher percentage of their discretionary income to charity than high-earners.
What does the study conclude about motivations for giving? "Donors in 2025 responded when organizations clearly communicated need, impact, and opportunity."
Bequests continue growing
U.S. charitable giving surpassed $600 billion for the first time since 2021, when it reached $661 billion in inflation-adjusted terms. A post-pandemic surge drove that high mark, as donors tried to meet increased human needs during the crisis.
"The individual donor is the place to begin," says Lilly Philanthropy. Planned giving should be near the top of any fundraising strategy as an expansive wealth transfer begins.
Bequest giving rose nearly 20% in current dollars and 16.6% after inflation. This marks the third time in the past four years that bequests have grown by 20% or more.
That gifting corresponds with the U.S. Federal Reserve's Survey of Consumer Finances, released in October of this year. That study, conducted every three years, shows the typical American family getting wealthier in the years following the Covid-19 pandemic, while well-off and older Americans got much richer.
The Wall Street Journal reported that wealth increased 37% for Americans 75 and older, while it declined 23% for persons under 35. During 2022-2025, people 75 and older became the richest age group, with a median net worth of $505,000 vs. $216,000 for all families. That wealth is measured in a family's assets, like stocks and home equity, minus their liabilities, like mortgages and credit card debt.
"The new data points to a picture of a two-speed economy where older and affluent people are thriving, and persistent inflation (3.7% as of September) is making others feel pessimistic about their finances and the economy broadly," the Journal reported.
The University of Michigan's October consumer sentiment index reached its second-lowest level on record.
Religion's mixed review
Giving USA draws special attention to the Religion category, as contributions are "relatively flat or declining," down 0.2% in real terms. Its share of total giving has declined, falling from over 50% in the late 1980s to roughly 23% of all U.S. charitable giving.
Nonetheless, Religion received $151.58 billion in 2025, the largest share of gifts—$52.08 billion more than the No. 2 category, Human Services, at $99.50 billion.
Factors influencing religious giving:
- Americans have become less Christian and less religious. In 2007, 78% of Americans called themselves Christian; today, that number is 63%. (Pew Research Center)
- Fewer households participate, and median gifts are lower, even as a small top tier of major donors increases contributions. (LinkedIn, Susan Axelrod)
- Remote worshippers give less per capita than in-person attendees. (Hartford Institute for Religion Research)
- A rising religiously unaffiliated population is shrinking the pool of active donors. (YouTubeIUPhilanthropy)
- Everyday donors and younger generations are increasingly directing philanthropic support to secular causes. (Center for Generosity)
Donor decline
What should concern all fundraisers? Fewer donors.
"The number of nonprofits in the U.S. has increased 34% in the last 20 years. In that same period, the percentage of U.S. households giving to charity fell from roughly 66% to less than half," writes Jessica Browning, a principal with Winkler Group.
Browning points to a dilemma of more nonprofits and fewer donors to support them.
A leading reason people don't contribute is that they don't feel they've been asked.
Another more substantiated factor is a change in U.S. tax policy. Fidelity Charitable reports that since Congress passed the 2017 Tax Cuts and Jobs Act, which increased the standard deduction, only about 10% of households itemize their deductions, leaving the remaining 90% ineligible for charitable giving tax deductions.
However, beginning with the 2026 tax year, a reinstated deduction from the 2025 One Big Beautiful Bill Act allows non-itemizers to deduct cash donations to charity—up to $1,000 for single filers or $2,000 for married couples filing jointly, adds Fidelity. *
Even so, giving remains concentrated among major donors.
The wealth effect
Foundation Source noted that with the economy strong for the upper tiers, giving should be higher. "Giving tends to track the stock market — with a couple of caveats."
Some say giving often rises when households feel financially stronger.
One of the fastest-growing charitable vehicles is the Donor Advised Fund, or DAF. "Donors, advisers, and institutions alike are increasingly recognizing DAFs as a vehicle for more meaningful, tax-effective giving," offered Steven Kump, a Foundation Source executive.
Charitable giving as a share of U.S. gross domestic product (GDP) has remained remarkably steady at roughly 2% for over four decades, according to historical and annual reports from Giving USA and the Generosity Commission Report.
Management matters
The Giving USA analysis highlights the realities of running a charity: "The need to navigate rising operational costs, workforce challenges, uncertainty about government funding, and growing demand for services."
Communicating need and donor retention are top priorities for everyone. Technology is helpful, but face-to-face contact still makes a difference. Consistently delivering the right messages is harder as donors' interests change. Listening is often overlooked.
News reports suggest artificial intelligence is reshaping charitable giving by changing how donors find causes, how nonprofits raise money, and how organizations operate behind the scenes.
Does it "pinch" to give?
The account of the widow's mite is found in Mark 12: 41-44 and Luke 21: 1-4. This well-known biblical story is about a poor widow who gives two tiny coins to the temple treasury. Jesus calls attention to her and teaches that sacrifice and devotion matter more than the gift's size.
41 Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. 42 But a poor widow came and put in two very small copper coins, worth only a few cents.
43 Calling his disciples to him, Jesus said, "Truly I tell you, this poor widow has put more into the treasury than all the others. 44 They gave out of their wealth; but she, out of her poverty, put everything — all she had to live on." (NIV)
The story of the widow's mite, a tiny, low-value bronze coin, is about humility and trust. It represents generosity as "a quality of being unselfish and kind, willing to give to others without expecting anything in return."
This real-life event Jesus observed is a timeless stewardship lesson that calls us to give—when it's easy and when it's not.
Strategist.com
© Bredholt & Co.
*Strategist Post has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
