As the economy struggles, many Americans are tightening their belts when it comes to year-end charitable donations.
Nonprofits hoping for a last-minute boost in contributions are likely to be disappointed, according to a recent AP-NORC poll, which attributes this shift to rising inflation, increasing living costs, and higher unemployment rates.
About half of all respondents indicated they have already cut back on charitable giving this year, with little intention to donate further. The survey reveals that only 18% of donors plan to give again before year-end, and just 6% are waiting until the last moment. Meanwhile, 30% reported they haven’t donated anything so far and do not plan to.
This results in a meager 24% of participants intending to contribute by the close of the year—a critical period for many charities.
Diane Chips Bailey, managing director of philanthropy at Bank of America, emphasized that December serves as an important deadline for many givers. She referred to data from the National Charitable Trust, suggesting that nearly one-third of annual donations come in during this month.
“December 31st provides a deadline for donors to fulfill their giving intentions,” Bailey commented.
Amid rising prices and stagnant income growth, low-income families are finding it increasingly difficult to give, despite numerous causes needing support, like natural disasters and budget-strapped social services.
Oakley Graham, a 32-year-old from Missouri, expressed that financial strains have hit his family hard, particularly with student loans wreaking havoc and their young kids needing clothes.
“It’s not like we’re unwilling to contribute; it’s just really hard to find extra funds,” Graham remarked.
The U.S. economy did show unexpected growth of 4.3% in the third quarter, the strongest rate in two years. However, this growth largely benefited higher-income households linked to the booming financial markets.
At the same time, the job market is facing challenges, with unemployment rates climbing to 4.6% in November, marking a four-year high.
Retail sales are also lagging, as companies like Home Depot report disappointing earnings and forecasts.
Inflation continues to hover above the Federal Reserve’s 2% target, which has lasting effects on consumers’ finances.
It’s also worth noting that reductions in the federal workforce have negatively impacted charitable giving, with donations from federal employees dropping 40% this year after significant job cuts occurred.
So far, federal employees have contributed $23 million this campaign, a stark decrease from over $40 million raised by this time in previous years. This campaign supports thousands of charities, particularly in the Washington, D.C., and Mid-Atlantic regions, with the United Federal Campaign having generated over $9 billion since its inception in the 1960s.
Experts attribute part of the decline in philanthropy to the influence of President Trump and his policies, which have labeled some charities as wasteful. However, the recent trends suggest that the issue is broader than that.
Long-Term Trends
The Fundraising Effectiveness Project reports that the number of Americans donating to charity has been falling for at least a decade, with a 3% drop in donor numbers observed in the first nine months of 2025 compared to the same period in the previous year. This marks five straight years of decline.
Concerns about finances are likely driving this trend. Even though wages have gradually increased, many Americans still struggle to manage everyday expenses.
In a McKinsey survey, almost half of respondents expressed anxiety about rising prices, and nearly a quarter admitted they are having difficulty making ends meet.
Thus, it’s not surprising that the most common reason people cite for withholding donations in 2024 is simply, “I don’t have the money.”
Consequently, the nonprofit sector has become increasingly reliant on a shrinking number of affluent donors.
Amir Pasik, dean of the Indiana University Lilly Family School of Philanthropy, noted he hopes to see “more dollars and fewer donors.”
A small segment of affluent contributors is shouldering the majority of philanthropy. According to the Fundraising Effectiveness Project, “supersize” donors (those giving $50,000 or more) account for just 0.4% of all donors, yet they contribute more than half of all donations in the U.S. during the early nine months of 2025.
Interestingly, some wealthy philanthropists are increasing their contributions in response to Trump’s stance on giving. The Gates Foundation has committed to investing $200 billion over the next two decades as it transitions toward closure, and Mackenzie Scott has impressively given away $7 billion this year.
