88% of Affluent Households Donated in 2020, New Study Says

In a year beset with a global pandemic and other crises, the vast majority of wealthy households — 88% — gave to charity in 2020, according to a study from Bank of America and the Indiana University Lilly Family School of Philanthropy.

“There was a high level of commitment to charitable giving that was maintained during these very difficult times,” says Una Osili, associate dean for research and international programs at the Lilly School. “Affluent households remained generous and consistent in their giving.”

The study is based on a survey of 1,626 households with a net worth of $1 million or more, excluding the value of their primary home, or an annual household income of $200,000 or more. The median income of survey participants was $350,000, and the median wealth level was $2 million.

Most affluent donors responded to the pandemic with unrestricted gifts that allowed organizations to spend the money on whatever leaders thought was most important. Roughly three-quarters reported that their contributions to health-related nonprofits and higher education were unrestricted, and more than 83% said they gave unrestricted donations to arts and culture groups.

Philanthropy advisers have been working for years to get rich donors to see the logic of giving more unrestricted gifts, says Dianne Chipps Bailey, who as managing director of Bank of America’s Philanthropic Solutions division advises both wealthy donors and nonprofits. She thinks the crises of 2020 helped donors better grasp the importance of giving unrestricted donations and releasing restrictions on previous gifts.

“The pandemic exposed the uncertainty in our world in a very dramatic way and showed that giving unrestricted gifts can really empower nonprofit leaders to direct that money to what is most needed,”...