From Giving USA to Illinois Gives: How to Ensure Lasting Impact in a Changing Charitable Environment

In 2023 Americans gave $557.16 billion to charities—the highest dollar amount on record. While a staggering total, it represents a 2.1% decline over the previous year when adjusted for inflation, according to the annual Giving USA report, the longest-running and most rigorously researched resource on U.S. charitable giving.  

Despite the dip in inflation-adjusted giving, the United States remains one of the most philanthropic nations in the world. And while the methods and mediums for giving may shift, it is individuals who fuel this generosity: 

• Giving by individuals comprised 67% of total giving in 2023 
• Giving by individual bequests accounted for 8% of giving 
• Giving by foundations (where many donor advised funds are housed) accounted for 19% of gifts 
• Giving by corporations accounted for 7% of total giving 

It is also important to note that the data is based on tax returns, and therefore doesn’t capture volunteer time, contributions to online campaigns like GoFundMe, participation in gift or food drives, and other forms of generosity.  

However, the Giving USA data does indicate that unease about the economy and inflation has affected individuals’ giving. Simply, people give more to charity when they feel economically secure. And while ultra-wealthy donors and multi-million-dollar gifts make headlines, these account for a small slice of total gifts. Smaller, reliable gifts remain critical sources of support for nonprofits.  

Over the course of my career, I have worked with many of individuals and families to help them achieve their giving goals. Long-term planning—for your lifetime and beyond—protects against the effects of short-term economic challenges and ensures lasting, sustainable support for the communities and organizations that matter to you. 

The Impact of Endowments 

Earlier this summer, the Illinois legislature passed, and Governor J.B. Pritzker signed into law, the Illinois Gives Act. The Act provides Illinois taxpayers with a 25% income tax credit for contributions to endowed funds at community foundations in Illinois. Donors can take the federal charitable deduction and the new Illinois Gives Act tax credit for the same gift. The tax credit takes effect on January 1, 2025 — details on obtaining the credit will be released this fall by the Illinois Department of Revenue.

The passage of this law is a recognition that community foundations are built to last. Our strong endowment allows the Trust to address the issues that matter most now and to work towards building a stronger Chicago for future generations.

Because of gifts to our endowment over the decades and the generosity of our donor advised fundholders, the Trust distributed more in total grants in 2023 than any other Chicago area foundation with $1.6 billion awarded to nonprofits throughout Chicago and across the country.  

Chicagoans have demonstrated time and again our commitment to supporting our communities and meeting the moment when crises arise. There are many paths to generosity, and the Trust is proud to serve as a partner in helping all our donors achieve their greatest impact.