US Charitable Giving Reaches $617 Billion in 2025 Amid Economic and Political Uncertainty

U.S. charities received $617 billion in philanthropic donations in 2025, a 3% inflation-adjusted increase over the previous year, according to the "Giving USA 2026: The Annual Report on Philanthropy for the Year 2025." This rise occurred despite a backdrop of economic uncertainty and political turbulence.

Key Drivers of Increased Giving

The report, which draws on research from the Indiana University Lilly Family School of Philanthropy, indicates that a strong stock market and overall economic growth significantly contributed to the uptick in donations. Jon Bergdoll, interim director of data and research partnerships at the Lilly Family School, noted the robust growth in financial markets, including the S&P 500, directly influenced the asset sizes of companies, foundations, and wealthy individuals, thereby driving increased giving.

All categories of donors — including corporations, living individuals, foundations, and bequests — increased their contributions. Bequests, in particular, saw a nearly 17% jump, marking the third double-digit increase in the last four years. This trend may signal the beginning of a long-anticipated wealth transfer from baby boomers to younger generations and charitable organizations.

Giving to Various Causes

Most charitable sectors experienced growth in donations. Education nonprofits saw an 8.9% increase, followed by public-society benefit organizations (8.7%) and environment and animal charities (8.2%). Arts, culture, and humanities (4.7%), health (3.3%), human services (2.6%), and international causes (1.4%) also saw smaller increases. However, giving to religious groups experienced a marginal decline of 0.2% when adjusted for inflation.

Megagifts and Individual Donors

The report highlighted the significant impact of megagifts, defined as contributions exceeding $600 million in 2025. These large donations accounted for approximately $19.2 billion, or about 4% of all dollars given by individuals. Notable megadonors included MacKenzie Scott, whose contributions represented a third of all megagiving, Michael Bloomberg, Bill Gates, and Paul Allen.

While individual giving remains a substantial portion of total donations, its share has decreased over time. In 1985, individuals accounted for 80% of charitable dollars; by 2025, this figure had fallen to 64%.

The Great Wealth Transfer

For years, experts have predicted a substantial wealth transfer from the baby boomer generation. The recent surge in bequests has led some to believe this transfer is beginning. However, Bergdoll cautioned that more data is needed to definitively confirm this trend, as recent estate report numbers are still relatively small.

Despite the need for more data, some nonprofits are proactively investing in planned giving programs. CARE, an international charity, has seen significant bequests from long-term donors and has increased its resources for planned giving. Similarly, organizations like the Natural Resources Defense Council have seen donors respond to appeals related to federal policy shifts, particularly concerning environmental regulations.

Challenges and Sector Performance

While overall giving increased, foundations experienced a sharp drop of nearly 18.3% in inflation-adjusted dollars. This decline follows a near-record-high year in 2024, and foundations still represented a strong dollar amount in 2025. Corporate giving saw a more modest increase of only half a percent, with some businesses facing economic challenges reducing their contributions.

Organizations like CARE also noted that cuts to federal programs, such as USAID, significantly impacted their funding. However, these organizations were able to offset some of these losses through increased private donations, often in response to specific appeals highlighting the need for humanitarian work or to counter policy changes.