Year-end charitable giving appears to be weakening this year as rising prices, stagnant incomes, and political and economic uncertainty strain household finances. Survey results show a growing share of respondents do not plan to donate, an unusual pattern for a season when giving typically peaks.
According to a public opinion survey by NORC, three out of 10 respondents said they have no plans to donate this year. Among respondents who participated in at least one donation activity over the past year, only 18% said they plan to donate again at year’s end, indicating a sharp drop in donation intent. NORC said the findings are unusual given that charitable activity is normally concentrated during the year-end season.
NORC attributed the decline to tighter household budgets driven by slowing income growth and high inflation. The survey noted that while the number of people in need has increased due to a series of natural disasters, including large wildfires in the LA area in January, donors themselves have less financial flexibility. The research group also said the total number of donors has been declining over the past several years.
Korean American organizations report experiencing the downturn directly. Moody Ko, pastor of Father’s Table Church, which provides free meals to unhoused people in LA, said donations this year are down about 30% compared with last year. He said the ministry’s free meals and outreach programs rely entirely on donations, but contributions have fallen as inflation and economic uncertainty grow. He added that even donors with financial means appear hesitant due to concerns about the future.
Ko also said enforcement actions against undocumented immigrants have reduced activity in Koreatown and downtown workplaces, weakening local businesses and contributing to a broader slowdown in the community economy. He said that when the economy contracts, charitable giving inevitably declines as well.
Young-kyu Kim, head of the nonprofit Java Mission, said churches and nonprofit organizations are facing greater difficulties this year than in the past. He said high prices and unfavorable economic conditions have left many people struggling to cover their own living expenses, limiting their ability to help others. Kim added that donation-based events and activities have dropped significantly compared with last year, to the point that other nonprofit groups have contacted his organization asking for assistance.
In contrast, so-called round-up donations—small contributions made by rounding up change at checkout—have remained relatively active. Two out of five adults said they have donated small amounts when paying at markets or similar locations, with the tendency particularly pronounced among those aged 60 and older.
As donation sentiment weakens, nonprofit organizations are stepping up outreach efforts. The National Philanthropic Trust said about 30% of all annual donations are typically made in December, prompting organizations to continue sending letters and appeals to donors through the end of the year.
Participation in Giving Tuesday, a nationwide day of giving held on the first Tuesday after Thanksgiving, also weakened compared with previous years. While about half of adults reported making purchases on Black Friday, only one in 10 said they donated on Giving Tuesday, according to the survey.
BY HANKIL KANG [kang.hankil@koreadaily.com]
