American Generosity Squeezed by Economic Uncertainty, According to Wells Fargo Study

By: Wells Fargo & Company via Business Wire

November 12, 2024 at 08:00 AM EST

Three-quarters (78%) of Americans report generosity as a core value
Half (51%) report not having enough money to give

While generosity is a core value for three-quarters of Americans, economic concerns have caused some to tighten their purse strings. Three in ten (29%) Americans report that they have given less to charity this year compared to the year before and a full half (51%) feel they don’t have enough money to give to charity at all.

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Wells Fargo: American Generosity Squeezed by Economic Uncertainty (Photo: Wells Fargo)

Even so, 67% of Americans still reported giving something in the past year, with more than half (54%) saying they give to charity even though they don’t have a lot of extra money. The study found that economic concern is a significant factor in declined giving, with more than half (52%) of Americans reporting that their reduced giving is a direct result of the current economy.

“The data shows us that the pinch of rising costs is driving a moral dilemma. Many Americans are in a standoff between what they want to do and what they can do,” said Stephanie Buckley, head of Trust Philanthropic Services with Wells Fargo Wealth & Investment Management.

Despite this dilemma, the study reveals that among the two in three Americans who made a charitable donation this year, 53% still report giving the same amount to charity as last year and another 19% report giving more. In fact, 60% of these Americans are so committed to their giving that they list charity as part of their budget and one in four (24%) will go as far as to defer their own financial needs in order to give money.

The study – which is based on a national poll conducted by Ipsos on behalf of Wells Fargo of 1,004 U.S. adults age 18 and older – also found that Americans reported giving $1,632 on average to charity in the past year.

Happiness drives giving

Driving factors of American giving are largely altruistic. Almost half of Americans are motivated to give to charity because it makes them happy (46%) and aligns with their personal values (45%). A third (32%) give because they have a personal connection to the cause, and a quarter (25%) say they give out of moral obligation. 20% give out of habit and 17% give because it helps them feel connected to others.

Comparatively, financial benefits and peer pressure have very little to do with why Americans give, with only 10% of Americans giving for tax deduction purposes and even fewer (5%) giving because their peers are also giving.

“There is a misnomer that many people give for selfish reasons, particularly among the affluent. When in actuality, I’ve found that no matter the level of wealth, giving tends to almost always be driven by wanting to make an impact,” said Buckley. “In fact, anonymous giving continues to be a rising trend which I believe lends itself to the idea that most people tend to give altruistically.”

Givers want to be more strategic

More than half (52%) of Americans do not get any advice about giving. A quarter (27%) report getting their advice from friends and family, 21% from internet research, 11% use a charity watchdog website, and only 6% get advice about giving from a financial professional like a financial advisor or accountant. Despite the lack of advice, the majority (57%) of Americans want to be more strategic in their charitable giving – a sentiment that could be amplified by the fact that half (49%) of Americans report being bombarded with request for donations.

“Not having a plan can often lead to a ‘smear the peanut butter’ approach, where people write checks and donate without thinking about how it aligns to what’s really important to them. Whether you are giving money, time, or talent, having a plan can help block out some of the noise and help ensure you are giving with intention,” said Buckley.

“What’s Giving Tuesday?”

The study also looked at Americans’ awareness of Giving Tuesday and the impact on giving trends. The majority (64%) of Americans report not having heard of Giving Tuesday, which was introduced in 2012 on the first Tuesday after Thanksgiving to raise awareness of the year-end giving season. Among the 36% of respondents who have heard of Giving Tuesday, 40% report participating and 17% say it causes them to donate more than planned.

As compared to other trends around that time of year, 31% of those who have heard of Giving Tuesday report donating as much to charity on Giving Tuesday as they spend on Cyber Monday or Black Friday.

“The idea behind Giving Tuesday is to inspire a wave of generosity. It’s a moment to bring us together, with intention, to have an impact on the communities around us,” said Buckley. “Whether you’ve participated before or are just hearing about it, I would encourage everyone to be thinking about where they can donate their time, dollars, or talent to the causes that matter most to them.”

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Wealth & Investment Management provides financial products and services through various bank and brokerage affiliates of Wells Fargo & Company.

Additional information may be found at www.wellsfargo.com

LinkedIn: https://www.linkedin.com/company/wellsfargo

About the Study

These are some of the findings of an Ipsos poll, conducted September 20-23 2024, on behalf of Wells Fargo. For this survey, a sample of 1,004 adults age 18+ from the continental U.S., Alaska, and Hawaii was interviewed online in English.

The sample for this study was randomly drawn from Ipsos’ online panel, partner online panel sources, and “river” sampling and does not rely on a population frame in the traditional sense. Ipsos uses fixed sample targets, unique to each study, in drawing a sample. After a sample has been obtained from the Ipsos panel, Ipsos calibrates respondent characteristics to be representative of the U.S. population using standard procedures such as raking-ratio adjustments. The source of these population targets is U.S. Census 2023 American Community Survey data. Posthoc weights were made to the population characteristics on gender, age, race/ethnicity, region, and education.

News Release Category: WF-ERS

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