Optimizing Charitable Giving
Americans donated more than $484 billion to charities in 2021, with the bulk of the money coming directly from individuals rather than major foundations or corporations. However, for individual people who want to donate, choosing where to give can be a daunting task; over a million public charities are headquartered in the U.S. alone. Donors mean well, but the way they give doesn’t always align with the world they envision. One large survey revealed that while 85% of donors say they care about non-profit performance, less than 10% actually give based on the relative performance of non-profits. Organizations led by people of color receive fewer dollars. And one survey suggests Americans intend to give twice as much to charity as they actually do.
The disconnection between donors’ intentions and actions suggest that certain features of the giving process may inhibit effective giving. Crucially, this can also make it hard for worthwhile nonprofits to get the funding that they need. That’s why, with generous support from the Bill & Melinda Gates Foundation and others, we are partnering with leaders in philanthropy to develop and test behavioral solutions aimed at improving the giving process for donors at all levels. Ultimately, this work will help more money reach non-profits, bolster their social impact, and give people around the world giving tools to match their generosity with their goals.
Interested in our behavioral approach to giving? Browse our many resources and reports on the left, and please reach out us at info@ideas42.org, or tweet at @ideas42 to join the conversation.
Partners