The Future of Giving: It Ain’t Good, Part 1
I have three major studies on giving trends on my desk, and all three say the same thing: giving to charitable organizations, including the Church, is in serious decline. I will break down the findings in this Coach, The Future of Giving: It Ain’t Good, Part 1.
“The average evangelical Protestant gave 1.7% of household income to church over the past 12 months, with a median of just two-tenths of one percent. Because of both lower generosity among those who are still giving and a drop in the proportion who give anything to church, the average has fallen 28% over the past three years from 2.4% generosity in 2021. The median has fallen from 0.6% three years ago.”1.
The good news is Americans gave $557 billion to charity in 2023. Yet, in looking at the other side of the coin, the percentage of what Americans give, we find an alarming trend developing. Consider these statistics from a report by the Generosity Commission called The Shifting Landscape of American Generosity.2. They found,
- A 2023 giving decline of 2.1% after a decline in 2022 of 8.4%.
- Fewer Americans are involved in their community by volunteering and giving than ever in the last two decades.
- The share of U.S. households reporting that they had donated to a nonprofit organization dropped from 65% in 2008 to 49% by 2018. This was the first time it had been below 50%.
- A three-year 19.1% drop in donors. The number of donors dropped by 3.4% in 2023 after having dropped by 10% in 2022 and by 5.7% in 2021.
This is but the tip of data that reveals that while charitable dollars are up, the number of donors and the percentage amount they give is declining. At the same time, volunteer hours are up, and the number of volunteers is down. Both facts are troubling for the future financial stability of churches. Why? Studies have shown that those who volunteer in an organization always give more. Yet one of the biggest concerns with the report lies in this finding, “More recently, researchers have linked the decline in charitable giving rates to the divergent beliefs, practices, and life experiences of younger age cohorts who are becoming a larger share of the giving population.”
The Shifting Landscape of American Generosity study found many reasons for the decline in charitable giving. One alarming trend for the Church contributing to this is the decline of American religious affiliation and participation in religious institutions. The report states that “Surveys from the Pew Research Center have shown that Americans who attend religious services weekly are more than 50% more likely to have given to charity in the last week than those who do not attend, while research from the Lilly Family School of Philanthropy has demonstrated that the average annual charitable contributions of Americans who claim religious affiliation are more than twice as large as those who do not.” As a result, “…the share of households that give to religious organizations or causes has fallen more steeply than the share of households giving to secular organizations, dropping from more than 46.5% in 2000 to 29% in 2018.” This spells trouble for future giving in the Church. While The Shifting Landscape of American Generosity looked at philanthropic giving overall, including giving to religion, The Giving Gap: Changes in Evangelical Generosity focuses exclusively on Evangelicals.
Here are some of their key findings concerning the current state of giving to the Church.
- Not only are fewer evangelicals giving, but those who are still giving are donating less than in 2021. Among evangelical donors to the church, the average amount given over the past 12 months was $2,503. This is down 15% from an inflation-adjusted average of $2,953 in 2021.
- Among charitable donors, the average given in the past year is $1,151, down 5% from $1,210 (inflation-adjusted) three years ago.
- Among those who gave to church or charity (or both), the average given is $3,053, a 15% drop from $3,572 (inflation-adjusted) in 2021.
The third report on my desk is from empty tomb, inc., an organization that conducts the most extensive research on the state of giving to the Church. Their findings mirror much of the other two studies, including discovering that giving as a percentage of income is now around 1.8%. They summarize their findings by stating, “These and other findings suggest that the church in the U.S. is currently following a trajectory that is weakening its ability to present the Good News of Jesus Christ in a meaningful way.”3. (Emphasis mine.)
So, wake up, Church leader! A train is heading your way, and it’s picking up momentum. Here is a reality that nearly every Christian leader ignores: your giving has declined even though you might not have realized it. Why? Because for too long, we have only focused on one side of the giving coin: the total amount of money donated. Year after year, that has increased while at the same time, the percentage people give has steadily declined.
One of the biggest concerns with these reports is this finding: “More recently, researchers have linked the decline in charitable giving rates to the divergent beliefs, practices, and life experiences of younger age cohorts who are becoming a larger share of the giving population.”4. This is why the future of giving ain’t good.
Next week, I will continue sharing thoughts about moving forward. The news is bleak, but we serve a mighty God!
For more information about the decline in giving, check out my Bonus Section!
Mark Brooks – The Stewardship Coach
mark@acts17generosity.com
OnlineGiving.org, the leading online giving processor in America, sponsors my writing. Find out more about their services at https://www.onlinegiving.org/.
- Infinity Concepts | Grey Matter Research, The Giving Gap: Changes In Evangelical Generosity. 2024 report.
- Giving USA Foundation, Giving by Generation. 2024 report.
- The State of Church Giving Through 2021 Intentional Miracles, John L. Ronsvalle and Sylvia Ronsvalle, Champaign, IL, May 2024, p.138
- Giving USA Foundation, Giving by Generation. 2024 report.