‘Troubling Trend’ in the Culture of Giving

The rich give more, everyone else gives less, and the money isn’t going where it used to.

Americans donated more than $400 billion to charity for the first time ever in 2017, the most recent year for which data is available. But the big number masks a big and troubling cultural change in who gives, how much, why, and — importantly — where the money goes. The number of household donating to charity has been declining for years, while the wealthy are giving more than ever. Changes to the tax laws are expected to dramatically widen this gap once the dust settles April 15.

“The expansion in charitable giving in the last several years is thanks to what we call ‘top heavily philanthropy,’ donations made by wealthy donors,” Chuck Collins, director of the Program on Inequality and the Common Good at the Institute for Policy Studies, told me the other day. “Otherwise, donations by low and middle income donors have been steadily declining over the last decade.”

Here’s why Collins thinks the shifts are problematic:

“Top-heavy philanthropy poses a number of risks for the independent nonprofit sector and our democracy as a whole,” he said. “Ideally, our vibrant nonprofit sector would walk on many legs and be supported by a widely diversified donor…