We spend most of our time on this blog pointing out ethical lapses, but let’s use America’s birthday to celebrate a very important collective good deed: Charitable donations are at record highs since the start of the pandemic.
It’s heartening to note that when the coronavirus shut down the economy, leaving millions without jobs and in desperate need, Americans stepped up to help, setting records in both the number and size of contributions.
While much of the increased giving has come from foundations, companies, and institutions, a great deal has also come from individuals. Exact numbers are impossible to calculate at this point, but grants to food banks and other safety net programs, were up 667% as of June. Thirty-two community foundations that reported their giving to June provided more than $200 billion. And Fidelity reported that donor-advised funds (a tax-advantaged charitable-giving tool for the wealthy) have given $3.4 billion, up 28% from 2019.
This is a reversal from 2018 and 2019, when charitable giving declined after the 2017 tax cut act eliminated the tax deduction for millions who no longer had the incentive to itemize. Congress reversed some of that damage in the CARES Act by loosening rules for large donations and by permitting a deduction of up to $300 for those who don’t itemize.
There’s still a lot more to be done. One survey shows that America’s 50 richest people have together donated $1 billion to coronavirus relief, just 0.1% of their net wealth. And with cases of the virus surging and some states going back into lockdown, it’s obvious the need for assistance is going to remain high for some time to come.
That is nice news. Unfortunately, the good banks have more need than ever before so we all have to keep giving.