As the United States economy slightly improves and disposable income of millions of households rises, more individuals and families are giving money away to charitable organizations and non-profit entities. New numbers show that charitable giving is increasing again.
An annual report published by the Giving USA Foundation and the Indiana University Lilly Family School discovered that charitable contributions in the U.S. have hit an all-time record high last year as Americans, companies and foundations donated $335.17 billion, up from $320 billion in 2012.
The study found that giving by individuals accounted for the largest percentage and dollar growth of total giving as it stood at $230.91 billion. Giving by foundations rose 5.7 percent to 46.34 billion, while giving by corporations slightly declined by 1.9 percent to $18.22 billion. Giving by bequest jumped 8.7 percent to $25.5 billion.
Report authors say that the most noteworthy figure was the growth of very large gifts of at least $80 million from estates, individuals and couples.
What organizations received what? Religious institutions received close to one-third (31 percent) of charitable contributions with $105.53 billion, while education was a distant second at 16 percent with $52.07 donations. Human services ($41.51 billion), gifts to foundations ($35.74 billion), healthcare ($31.86 billion), public-society benefit ($23.89 billion), the arts ($16.6 billion), international affairs ($14.93 billion), environment ($9.72 billion) and gifts to individuals ($3.66 billion) rounded out the list.
“While this has been a particularly slow recovery, many charities are beginning to see the light at the end of the tunnel,” said L. Gregg Carlson, president of Henderson, Nevada-based Carlson Fund Raising and chair of Giving USA Foundation, in a statement. “Donors are increasingly more comfortable giving to the causes they care about and at a level in keeping with the impact they would like to make.”
Much of these voluntary contributions can be attributed to the growing wealth of millions of Americans. Last year, numerous companies reported record profits, the top one percent grew their incomes by 31 percent between 2009 and 2012 and household wealth rose to $80.7 trillion last year, up 44 percent from 2009.
Although charitable donations suggest that Americans are philanthropic and answer the various calls to societal needs, some economists question the virtues and meaning behind such contributions.
Ayn Rand famously stated in 1964:
“My views on charity are very simple. I do not consider it a major virtue and, above all, I do not consider it a moral duty. There is nothing wrong in helping other people, if and when they are worthy of the help and you can afford to help them. I regard charity as a marginal issue. What I am fighting is the idea that charity is a moral duty and a primary virtue.”
Over the years, some economists have presented the case that individuals would be better served to save and invest their money into businesses, venture capital firms and in the market because this is how and where jobs are created and provide an everlasting benefit for individuals rather than one-time assistance that offers only a short-term solution.
