Charitable giving trends are returning to pre-COVID patterns, according to an Evangelical Council for Financial Accountability (ECFA) report.
Pulling from quarterly snapshot data compiled by IndependentSector.org, ECFA highlights a key point: as pandemic-era needs waned in 2022, non-profit giving trends followed along, particularly from small-dollar ($500 or less) donors, who are giving less than they did before the pandemic.
But while small- and micro-donors ($100 or less) are fewer in number, overall donations saw a 7 percent jump in the second quarter of 2022, signaling a return to dependence on midsize ($500-$5K), Major ($5K-$50K) and Supersize ($50K) donors.
The ECFA study notes that pandemic-era giving spiked as charities became more and more visible in their communities. As the pandemic has waned, so has the visibility, and the motivation to give.
That, along with fewer tax incentives and higher inflation, is having a chilling effect, too, especially on small- and micro-donors.
Other key insights from the IndependentSector study:
- U.S. nonprofits pumped $1.5 trillion into the economy in 1Q23
- Trust in non-profits dropped from 59% to 56% from 2020 to 2022
- Overall, the number of donors dropped by 10% in 2022
For Church Law & Tax members: Soliciting donations is a crucial—and complicated—part of managing a church’s finances. It’s a fact highlighted in a legal development out of Michigan. That’s where a church sued the archdiocese for soliciting donations for one thing only to turn and use it for something else.