The number of affluent Americans giving to charity keeps falling.

While the stock market and real estate valuations are at all-time highs, the number of affluent Americans giving to charity keeps falling. According to the widely cited Bank of America Study of Philanthropy, only 81% of high-net-worth households gave to charity in 2024, down from 91% in 2015. The BoA study surveyed over 1,500 U.S. households with a median net worth of $2 million and a median income of $350,000.

According to the survey, the most common reason affluent households don’t give to charity is that “family needs” take priority (45% of non-giving respondents cited this, compared to just 27% a decade ago). Another one in four (25%) respondents who didn’t give said it was because they didn’t feel a connection to any charitable organization or weren’t asked to give (19%).

Hidden Factors at Play

However, I think there are bigger drivers at play. First, there’s solicitation fatigue. Many people, especially the affluent, are being deluged with requests from nonprofits fearing that their government funding will be cut. Donors are growing tired of being funneled into a charity’s marketing efforts as soon as they donate. Once they give, they’re on the list forever. Each donation they make seems to trigger an immediate follow-up request to give even more. I’ve also heard from many clients that the messaging from charitable organizations has become so muddled that they aren’t sure where their money is going or how it will be used.

But you can’t just point the finger at overzealous charitable organizations. There’s a general lack of education about strategic giving in our country. While the BoA study indicated that nearly half of respondents (46%) considered themselves “knowledgeable” about charitable giving, I’m not sure they are. For starters, the study found that 96% of affluent donors gave cash (via check or credit card) instead of giving appreciated assets such as securities, real estate or even crypto. That’s a missed opportunity for donors and their advisors. There are many important reasons why your clients should consider giving appreciated assets rather than cash to charity, and doing so could increase the participation level:
1. Capital gains reduction. By donating the assets directly to a qualified public charity, your client and the charity avoid capital gains tax on the asset’s appreciation.
2. Income tax deduction. Clients can still claim a charitable income tax deduction for the full fair market value of the asset on the date of the gift. This allows them to deduct a larger amount from their taxable income than what would be left after selling the asset and paying the taxes.
3. Portfolio rebalancing This strategy can help clients rebalance their investment portfolios by letting them give away concentrated, highly appreciated positions without incurring taxes. They can then use cash to repurchase new shares with a higher cost basis, which reduces their future capital gain exposure.
4. Estate planning Donating appreciated assets can reduce the size of your client’s taxable estate, which is an effective strategy for clients with substantial estates.
One thing that encouraged me about the 2025 BoA study was the increase in volunteerism it detected among the affluent. Over my four-decade career, I’ve found that people who volunteer for a charity generally also give more money in the long term. As a comprehensive advisor, you should ask your clients what they care about and help them define their charitable viewpoint. You might suggest that they consider volunteering for the organization to which they’re considering giving, so they can see firsthand how the organization functions, what its mission really is and how it carries out its mission. You always want to look under the hood before writing a big check or donating significant non-cash assets.

Your philanthropically inclined clients want to ensure that the majority of their gifts are delivered to the organization’s mission and not lost in overhead, marketing or mismanagement. Consultation sites such as Charity Navigator and GuideStar (now part of Candid) provide donors, funders and the public with information to evaluate and compare charities based on their financial health, accountability and transparency.

The BoA survey also pointed to the increased use of giving vehicles (cited by 24% of respondents). What it didn’t explain, however, was that the predominant giving vehicle was a donor-advised fund (DAF). Unlike giving directly to charity, DAFs allow donors to donate and then take an immediate tax deduction while waiting for the DAF to determine how the donation will be used. While the donation is irrevocable, it can grow tax-free in the DAF while the decision is contemplated.

However, DAFs are often criticized because the money is idle and does not benefit a charity immediately. While this is true, DAFs give the donor the opportunity to evaluate various organizations properly and to distribute funds more effectively.

While the decision about how to use the funds is ultimately the DAF’s, not the donor’s, major DAF sponsors are all user-friendly. The most restrictive DAFs are those that a single cause charity or a local community foundation sponsors. That’s where it’s desirable to keep the funds within the community they serve. Donors and their advisors just need to pay attention to these guidelines.

Unfortunately, too many advisors automatically default to DAFs when clients express interest in charitable giving. They don’t know any better. In many circumstances, a charitable trust, such as a charitable remainder trust or a pooled income fund, is a better strategy as both vehicles benefit both the donor and the charity. Advisors are missing out by not examining other giving vehicles and tools.

Finally, the study found that only 13% of affluent respondents—one in eight—involved their children or grandchildren in their giving plans. That gap provides a huge opportunity for you to help clients with legacy planning and to engage the NextGen in giving, whether through volunteering their time or making a direct gift of wealth.  It’s a great way to pass down your client’s family values from one generation to the next.

Your clients are in a unique position to make an impact with their wealth and influence through direct giving, volunteering, serving on a board, or advocacy. Be proactive about initiating philanthropic conversations with them. Don’t wait for them to ask.