The 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households is out, and  confirms that wealthy families are as committed as ever to the nonprofit sector and community causes.

Of the 1,626 households surveyed: 

• 88% gave to at least one charity in 2020;
• Average giving by this demographic grew by 48% (up to $43,195 from $29,269) between 2017 and 2020; and
• Even if income tax rules change, 78% of this group say their giving levels would stay the same or even increase if they could not deduct contributions 

The motivations and preferences behind charitable giving are changing. Here’s how: 

1. For the first time, affluent donors care as much about supporting the issues (44%) as they care about supporting the nonprofit organizations themselves (45%). In the past, most affluent donors have put far more weight on the organization when considering charitable giving options.
2. The issues themselves are shifting, too. For example, more than 20% of affluent households supported social and racial justice causes.
3. Diverse donors and younger donors are beginning to prefer structured giving vehicles, such as donor-advised funds, over direct giving to operating charities.
4. Affluent volunteers give twice as much as affluent people who don’t volunteer.
5. Affluent philanthropists are becoming more vocal about the challenges they face when making charitable giving decisions, notably:

• Figuring out what causes they care about and where to make donations to support those causes (40%)
• Figuring out a charitable giving budget and how much they can afford to give (32%)
• Figuring out how to measure the results of their giving to be sure it’s making a difference (24%)

Our key takeaway from this study:  Partnership with a community foundation is more beneficial than ever for your clients.  With our team of experts, we can introduce your clients to a range of nonprofit organizations that are doing impactful work in the areas that are of interest to them.  We can support their grantmaking efforts to ensure theirs funds are making maximum impact and work closely with you and other advisors to help map out their charitable giving budget.

As charitable giving questions arise, don’t hesitate to contact us.