Exciting news: There’s been an increase in American charitable donations.

Total donations from individuals, bequests, foundations, and corporations to nonprofit organizations in 2024 saw a rise of 6.3% to a record $592.5 billion, based on the most recent report from the Giving USA Foundation. Interestingly, after adjusting for inflation, total giving increased by 3.3% (a new record), marking the first time in three years donations exceeded inflation.

Individual giving makes up about two-thirds of the total. In 2024, individual giving increased by 8.2% to $392 billion or 5.1% when adjusted for inflation. Studies suggest that those with fewer resources donate a larger proportion of their income than their higher-income counterparts.

Corporate giving rose both before and after inflation. However, foundation giving saw a slight decline when adjusted for inflation, and bequests were lower.

A stronger economy and favourable financial markets encourage charitable giving, and vice versa. The impressive giving figures come in spite of the Tax Cuts and Jobs Act of 2017 (TCJA) — a key legislation from President Donald Trump’s first term — which significantly increased the standard deduction, leading to a sharp decrease in itemizing households.

The Census Bureau and AmeriCorps reported that over 28% of the population aged 16 and above formally volunteered between September 2022 and September 2023. This indicates that volunteer numbers are nearing pre-pandemic levels.

Trump’s significant bill, currently under review in Congress, is expected to affect giving. Regardless of the outcome of this legislation, the demand for funds and volunteer work from nonprofits is surging due to cuts in federal spending.

Embracing a giving mindset fosters trust, strengthens relationships, and reiterates shared values within communities. As Richard Leider, founder of Inventure – The Purpose Company, wrote: “If you want to help yourself, help others. It works because it gets you out of your head and your narrow life and into the lives of others.”