Over the past few years, Americans have experienced all manner of economic uncertainty—high prices for household goods, rising debt, and challenging housing markets. Although the pandemic recovery period surpassed initial projections, today’s economic environment remains challenging for charitable organizations that rely on donor support.
Industry experts Infinity Concepts and BBS & Associates, both NRB members, provide their analysis of the situation.
2023: The Numbers
Total charitable giving in the US amounted to $557.16 billion in 2023, a giving high in current dollars, but after adjusting for inflation, these figures indicate a 2.1 percent decrease since 2022.
There was a brief upturn in charitable giving between 2020–2021, as people responded generously to the needs that arose during the pandemic. Following the pandemic years, which were the two best years on record for charitable giving, 2022 showed a decline in total giving due to discouraging economic trends which linger in 2024. Total giving has yet to top the all-time high in 2021.
Delving into the trends of evangelical Christian giving, Infinity Concepts also documented a sharp 15 percent fall of giving among evangelicals starting from 2021. In their new report “The Giving Gap: Changes in Evangelical Generosity” in partnership with Grey Matter Research, which will be released on September 12, they compare research from 2020 to their new data collected February 2024.
From 2021–2024, the number of evangelical Christians who gave to a church fell from 74 percent to 61 percent. The percentage of evangelicals who gave to a nonprofit or ministry outside of church fell from 58 percent to 50 percent.
BBS & Associates, a ministry fundraising consulting firm, found that lack of confidence in the economy continues to be a major factor for donors. Even in the last few days, the economy has seen a significant drop in the stock market, an increase in unemployment, and a significant decrease in jobs available and hiring, volatilities that increase fear and uncertainty about the future.
Generosity & Tithing Among Evangelicals
Along with donors in the nation at large, the proportion of evangelicals who tithe has fallen significantly from 2021. Infinity Concepts defines tithing as generosity of eight percent or more, recognizing potential flexibility in the percentage. They measure generosity by comparing the proportion of household income given away. Today, only 10 percent of all evangelicals give what could be considered a tithe.
For the purposes of their study, Infinity Concepts defines an evangelical as someone who strongly affirms the following four key beliefs: 1) The Bible is the highest authority for what I believe, 2) Jesus Christ’s death on the cross is the only sacrifice that could remove the penalty of my sin, 3) only those who trust in Jesus Christ alone as their Savior receive God’s free gift of eternal salvation, and 4) it is important for me to encourage non-Christians to trust Jesus Christ as their Savior. They further limited the study to those within the Protestant world.
According to Infinity Concepts, churches face a twofold challenge: a shrinking donor base and reduced giving among existing donors. They found that the average donor gives 2.8 percent of household income to church and an average of 1.1 percent of household income to other charities. With church and charity combined, the average evangelical donor offers 3.3 percent of their household income to such institutions.
Unlike the average (mean), which can be skewed by extreme values, the median (middle value) provides a better representation of the central tendency when there are outliers. For charitable giving, the average is down 18 percent while the median of annual total giving is down a whopping 91 percent, representing a fall from $57 to $5. In simpler terms, this means that in 2021, about half of all evangelical Protestants gave $57 or more to charity, while today, about half gave $5 or more. The lower giving among those who are still donors combines with the fact that fewer evangelicals are giving anything at all, making the drop much more severe.
Source: Infinity Concepts, 2024 Giving Gap Survey
Among the categories of nonprofits that receive charitable contributions, the religion sector was one of two sectors which saw a decline in total giving from the previous year. And as the Pew Research Center projects, with the current trending decline in overall belief in God, worship attendance, and identification with Christianity, by 2070, Christians are expected to comprise only 46 percent of American adults. Based on this data, Infinity Concepts posits that there is a long-term decline in both religious giving and support for religious causes.
Mental inflation may also be suppressing donations. Infinity Concepts found that the average donor overestimates his or her generosity by 331 percent. People think they donate 8.4 percent of their income, but the actual dollar figure is less than 1 percent. Given the common definition of tithing as 10 percent of one’s income, many may believe they’re already generous enough.
With such low tithing rates among evangelicals, Infinity Concepts proposes setting smaller, achievable giving goals as a first step to increase overall donations.
Infinity Concepts also tracks giving compared to spiritual engagement (time spent in prayer, reading Scripture, attending church), finding average generosity is 461 percent higher than someone with low or no spiritual engagement. Mark Dreistadt, founder, president, and CEO of Infinity Concepts, sees a deeper issue occurring.
“It may be that the decline in charitable giving reflects a deeper spiritual problem,” Dreistadt said. “While external factors … may make it more difficult for many to give, I believe the core issue is spiritual engagement. … Lower levels of spiritual engagement result in a more self-serving financial focus, deprioritizing giving to both church and charity.”
The Election Year & Political Climate
Charitable giving is expected to decline for the remainder of 2024 as many individuals, including Christians, are redirecting their financial resources towards political contributions. BBS & Associates reported that 16 percent of donors said they will be giving less in 2024 due to the election.
BBS & Associates president Dr. Dale Berkey links the decline in charitable giving to growing economic concerns, including uncertainty surrounding the upcoming election.
BBS & Associates found that 78 percent of conservatives, 61 percent of Christians, 54 percent of moderates, and 36 percent of liberals were dissatisfied with the country’s direction. In a rare signal of unity, the level of dissatisfaction increased in each group at the same time.
“I do think that by crafting strong messaging and focusing on the audiences that have the most resources to give,” Berkey said, “[2024] can be a solid year. 2025 will probably still be challenging and perhaps more problematic than 2024, depending on which way the market goes, who gets into office, and whether there is optimism or pessimism in the Christian community about the future of the country.”
As widespread discontent with the political climate and the nation’s trajectory permeates all segments of society, BBS & Associates encourages organizations to underscore the importance of making a positive difference in community by advancing the work of the Kingdom.
Dreistadt believes that while nonprofits should remain cautious, agile, and innovative through this difficult season, the most important factor is spiritual.
“As Christian nonprofits are faithful to call people to a biblical worldview and Christlike life, God will bless their work,” Dreistadt said. “Ministries that stand strong for the Gospel will likely find a strong foundation of support; ministries that compromise biblical values may find donor challenges and a difficult road ahead.”
An opportunity arises for Christian nonprofits to point to the realization that societal and political solutions alone cannot address deep-rooted spiritual and moral challenges. Such a shift could revitalize an emphasis on God as the ultimate authority, the Gospel’s capacity to change lives, and His active presence as the true source of hope and healing for individuals.
The Larger Picture: 2024 & Beyond
Infinity Concepts pointed out that it is hard to say whether 2023’s figures are part of a long-term decrease in giving or are a return to normalcy after an artificial increase in giving.
The Giving USA inflation-adjusted report, marking the overall trend of decline in giving, shows the decrease is not unique to evangelical Protestants and is part of a larger pattern. Yet, as Infinity Concepts has said: Shouldn’t the behavior of believers be different from that of the nation as a whole?
“We live in a culture in need of spiritual revival,” Dreistadt said. “The majority of Christians live their lives in a way that is virtually indistinguishable from non-believers. I believe the most important challenge facing ministries today is to call people to a higher level of spiritual engagement.”
While acquiring new donors, reactivating lapsed donors, and focusing on long-term relationships often requires significant upfront investment and potentially delayed returns, Berkey said these efforts are crucial for lasting donor growth and financial sustainability. Berkey recommends organizations emphasize showing donors the value of their giving, how it brings glory to God, and making donors feel they are part of something bigger that God is doing.
“Strategies must emphasize a confidence in God, our Provider, and His purposes being accomplished rather than living in fear,” Berkey said.
Infinity Concepts has been an NRB member since 1998. Learn more at their website: www.infinityconcepts.com.
BBS & Associates has been an NRB member since 2005. Learn more at their website: www.servantheart.com.