In a year dramatically disrupted by the pandemic, affluent Americans’ generosity didn’t waver, according to preliminary findings from the 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households. The vast majority of affluent Americans, nearly 90%, gave to charity in 2020. And nearly half (47%) donated to charitable organizations or financially supported individuals or businesses in direct response to the pandemic.
Preliminary findings from this nationwide survey of more than 1,600 affluent households1, conducted in collaboration with the Indiana University Lilly Family School of Philanthropy at IUPUI, revealed three distinct shifts in giving behavior related to the pandemic:
Additional ways in which affluent households responded to this historic period included:
“Philanthropic households rose to the extraordinary challenges presented by the pandemic,” said Ann Limberg, head of Philanthropic, Bank of America Private Bank. “This sustained commitment by donors shows the importance of a strategic approach to philanthropy that is still flexible enough to respond to a sudden surge in need. It is also a testament to the resilience of those charitable organizations that were able to pivot and effectively use technology to engage with donors during such difficult times.”
In response to the pandemic, affluent households focused their efforts primarily on the communities in which they live, increasing their support of local charities, individuals and businesses. Ninety percent (90%) of affluent households that increased their giving for basic needs and medical care in 2020 directed their donations to organizations in their own communities, 35% supported U.S. organizations outside of their community, and 15% gave internationally.
While donors often place restrictions on how or where their gifts may be spent, many donors gave general current use (i.e., unrestricted) gifts in 2020, allowing recipients flexibility to meet priority needs. Among households who gave to arts and cultural organizations, health and medical organizations, or educational institutions, large numbers gave unrestricted gifts (83%; 75%; 74% respectively).
“In times of crisis, Americans have historically responded quickly and generously to assist others and address urgent needs,” said Una Osili, Ph.D., Efroymson Chair in Philanthropy, Professor of Economics and Philanthropic Studies and Associate Dean for Research and International Programs at the Indiana University Lilly Family School of Philanthropy. “During the pandemic, unrestricted giving by affluent Americans supported continuing operations at many nonprofits, enabling them to continue serving their communities, and was a significant aspect of giving behavior during the pandemic. Additionally, many households expanded giving by donating to local businesses and individuals during the pandemic.”
The vast majority of affluent Americans (88%) said that the lockdowns and social distancing, common in 2020, had little to no impact on their households’ philanthropy. However, the pandemic did change how donors engaged with the organizations they support, with nonprofits adapting to restrictions on personal interaction by shifting programming, events and other interaction into virtual formats. Nearly a third of affluent Americans (31%) reported that the organizations they supported reached out to them virtually. Among those households, 53% experienced more frequent contact via email, 43% experienced more frequent virtual events and galas, 32% experienced more frequent outreach via social media, and 27% experienced more frequent outreach via physical mail.
To further explore these and other related insights from the study, read “Helping your neighbor: A story of generosity”.
The 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households asked about giving in 2020. Development of the survey was a collaborative effort between Bank of America and the Indiana University Lilly Family School of Philanthropy. The Indiana University Lilly Family School of Philanthropy analyzed the responses for data validity and generated the statistical output. Analysis of survey results was a joint effort between the partners.
The survey was conducted using data obtained by Ipsos, including responses from its KnowledgePanel®, a nationally-representative, probability-based panel offering highly accurate and representative samples for online research. Ipsos engaged with the online panel, administered the survey to them, and scrubbed the responses for data validity.
The Indiana University Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its undergraduate, graduate, certificate and professional development programs, its research and international programs and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. For more information, visit https://philanthropy.iupui.edu/.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Julia Ehrenfeld, Bank of America
Adriene Davis Kalugyer, Indiana University Lilly Family School of Philanthropy