In this research roundup, we look at two studies that examine how location affects donations and a report on what motivates people who attend giving events to contribute.
Rich Donors in Mixed-Income Areas Give More
Wealthy donors who live in communities with greater levels of economic inequality are more likely to make generous donations than those who live in more economically homogeneous areas, according to a recent study looking the United States and Britain.
Research led by Joel Suss, of the London School of Economics and Political Science and the Bank of England, analyzed U.S. charitable donations in 2018 based on IRS data as well as data on income inequality by ZIP code. Suss also looked at self-reported charitable giving data from Britain’s “Understanding Society” survey, which was gathered in 2016-17, and evaluated income inequality using home values for 23 million households.
“Higher-income individuals and households are generally more likely to donate and more generous in absolute terms when giving,” Suss writes. The result was more pronounced in Britain than it was in the United States.
Suss says more research is needed to understand why the rich give more if they live in communities with high inequality, but it may be a sense of solidarity with their community or because they want to satisfy their conscience.
Regional Differences in Giving
A report from Fidelity Charitable found that while there are some overall national priorities in giving, “distinct local and regional patterns” emerge when you look more closely at where people with donor-advised funds direct their money.
The 2023 Geography of Giving report found that nationally, the three most popular causes for giving in 2022 were human services (56 percent), education (49 percent), and religion (48 percent). However, when throwing geography into the mix, religion was most popular in the South and Central United States and human services on the East and West coasts.
The report also looked at the top causes for various regions of the country. For example, the top region for education giving was Bridgeport-Stamford-Norwalk, in Connecticut, while the top region for international giving was Washington-Arlington-Alexandria.
Nationally, donors gave 39 percent of their funds to local charities, but in some regions the numbers were higher, including St. Louis, where 66 percent of funds were given locally, Salt Lake City (64 percent), and Atlanta-Sandy Springs-Marietta (63 percent).
A recent report from OneCause, a fundraising technology company, found that the people it defines as social donors continue to be motivated by missions they care about and easy ways to give to their favorite cause — and now that they’re flocking back to in-person events, they have higher expectations.
The group’s 2023 Giving Experience Study surveyed 1,101 people described as social donors. OneCause defines them as people who took least one of the following actions in the previous 12 months: donated to or attended a fundraising event, such as a gala or auction; sponsored someone or participated in a peer-to-peer fundraising event like a walk, run, or bike ride; or donated or requested contributions as part of a fundraising challenge or giving day.
The top three reasons social donors gave were because they cared about the mission (61 percent), they trusted the organization to use the money well (60 percent), and it was easy to do (60 percent).
The report also found noticeable differences in generational giving. Boomers and millennials were the most generous when measured by dollars, according to the survey, giving an average of $1,374 and $1,219 annually in 2023. That compares with $1,036 given by Gen X and $864 given by Gen Z. However, more than half of Gen Z donors said they gave more to charity in 2023 than in the previous year, as did 43 percent of millennials, 32 percent of Gen Xers, and 27 percent of boomers.
More people are returning to in-person events, and the report notes they expect higher-quality events now. The percentage of respondents who rated the events they attended as excellent dropped from 64 percent in 2021 to 53 percent in 2023.
“As social donors settle back into in-person interactions, nonprofits should know their expectations have continued to evolve, and they are looking for more from their event-based giving opportunities,” the report says. “Guests are now looking for in-person events that offer unique and memorable experiences. They want events that are well-curated and provide activities that feel special and aren’t easily replicated.”
