The giving season is fully upon us, and Americans are among the most generous in the world. Everyone loves the party game/icebreaker “two truths and a lie.” Can you identify which of the following is NOT true about Giving Tuesday?
A. The United States is the 6th most generous country in the world.
B. Inflation and rising prices made charitable giving lower than usual in 2024.
C. Private charities are more effective than government programs.
Let’s take these statements one at a time:
A. TRUTH! A study conducted annually by Charities Aid Foundation ranks 142 countries in generosity measures such as time spent volunteering, the number of people who donate money, and the number of people who help strangers. The United States ranks 6th most generous country in the world, with 76% of American adults helping a stranger, 61% donating money, and 39% volunteering. By this ranking system, Poland ranked last.
B. LIE! Although high prices of food have made the cost of living rise, charitable giving was higher in 2024 than in the previous year. In fact, since 1977, charitable giving has increased nearly every year. The organization GivingTuesday tracks charitable giving each year, and in 2024, $3.6 billion was donated on Giving Tuesday. That’s 16% more than was donated in 2023. Even if people are struggling financially, Americans are still deciding to give what they can. 9.2 million people volunteered, a 4% increase over 2023. 12.9 million people gave goods instead of financial contributions, a 32% increase over the year before.
C. TRUTH! Studies have found that 70% of the money budgeted for government assistance is spent on administrative costs while only 30% goes towards helping low-income people. Private charities, on the other hand, give over 70% of their proceeds directly to the cause they are trying to further. Many organizations are able to create a large impact for only half the cost of government programs.
Bottom Line: Giving Tuesday draws millions of people to donate or volunteer for their favorite cause. Not only does the holiday help to organize charitable giving in the United States, it also helps organizations more effectively reach their end-of-year fundraising goals as the giving season ramps up.