Affluent Americans did not hold back in their support during the pandemic. Preliminary findings from a Bank of America study found that nearly 90% gave to charity in 2020, and nearly half (47%) donated to charitable organizations or financially supported individuals or businesses.
Despite social distancing constraints, one in three (30%) volunteered during the crisis, with 71% either maintaining or increasing their volunteering activities.
The 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households, surveyed more than 1,600 affluent households, in collaboration with the Indiana University Lilly Family School of Philanthropy at IUPUI. It found that while charitable giving was consistent with previous years, there were notable behavioral shifts in giving.
There was an increase in supporting the communities in which they live, with donors primarily increasing their support of local charities, individuals, and businesses. The release noted that 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.
There also was an increase in unrestricted gifts to a variety of nonprofit organizations, which allowed flexibility to meet needs. The survey showed that 83% of households gave to unrestricted gifts to arts and cultural organizations; 75% gave unrestricted to health and medical organizations; and 74% to educational institutions.
And there was an increase in virtual interactions between nonprofits and donors. Nearly a third of donors (31%) said the organizations they supported reached out to them virtually, the survey said. It noted that among those households, 53% connected more frequently via email, 43% connected more frequently virtual events and galas, 32% had more frequent outreach via social media, and 27% connected more frequently via physical mail.
The survey also found that most donor household (93%) maintained or increased their giving to frontline organizations providing basic needs such as healthcare and medicine. Eighty-five percent of households maintained or increased their giving for spiritual and religious purposes; and 94% of households maintained or increased their giving for other purposes such as education, the arts, and the environment.
“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,” Ann Limberg, head of Philanthropic, Bank of America Private Bank, said in a statement. “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.”