Nearly six in ten Americans prefer a donation in their name to a gift
Nearly six in ten (59 percent) Americans say they would rather have a donation made on their behalf to their favorite charity than receive a gift for themselves this year, a report from Fidelity Charitable finds.
Based on a survey of more than fifteen hundred American adults, the report, Year-end charitable giving: A 2021 snapshot of how Americans plan to give (8 pages, PDF), found that 64 percent of respondents said they participate in year-end charitable activities, including giving money (53 percent) or donating goods (46 percent) to charities, donating cash or goods directly to families in need (27 percent), performing random acts of kindness (25 percent), and volunteering (20 percent).
Among respondents who have a minimum of $25,000 in investable assets and donated at least $1,000 to charity in 2020, 35 percent said they plan to give “notably more” in 2021, 57 percent planned to give “about the same,” and 8 percent planned to give “notably less.” Within this group, 87 percent of respondents reported using cash, checks, or credit cards to give, while fewer said they were aware of certain other giving options and even fewer had ever used them, including donating appreciated assets such as publicly traded securities (55 percent aware, 18 percent used) and privately held or restricted stock (54 percent, 17 percent), making a qualified charitable distribution from an IRA (54 percent, 18 percent), or giving through donor-advised funds (41 percent, 17 percent).
The survey also found that 63 percent of respondents who give said they would “definitely” (31 percent) or “probably” (32 percent) take advantage of a temporary federal law allowing tax deductions for some cash donations even if the taxpayer doesn’t itemize their taxes.
“At such a busy time, it’s easy to put off year-end charitable decisions, but there are advantages to acting early,” said Fidelity Charitable COO Kristen Robinson. “You can maximize your ability to support your favorite causes and your 2021 tax benefits using smart giving strategies. And while we encourage people not to run down the clock for practical reasons, we think it will be particularly meaningful to integrate charitable activity into holiday traditions this year after another challenging year that has reinforced the importance of supporting our communities and each other.”
