Donors Overestimate Their Generosity

New study profiles the average American donor, finds they’re less generous than they think

Americans think highly of their own altruistic leanings — much more highly than facts warrant.

First, the percentage of their household income they donate has fallen from 1.95% to 1.22% between 2017 and 2025, or a roughly 37.5% decrease in eight years. And second, when asked to estimate how much they give, their guesses are on average 277% more than their actual donations.

Photo by Timur Shakerzian / Unsplash / Creative Commons

This false perception presents a challenge for fundraising professionals. As the authors of The Average American Donor: Far Less Generous Than They Think, a new study from Grey Matter Research & Consulting (from which these figures are drawn) write, “If you think you’re already giving far more generously than you actually are, why would you consider increasing your generosity?”

What’s even more concerning to the authors is the drop in average donations in actual dollar amounts. The donations have dropped while incomes have risen over that eight-year period.

The authors excluded giving to local churches, as donation patterns to these types of institutions differ from those to other nonprofits. “Although in reality, they are among the most generous Americans, Christians—especially Protestants—are the donors most prone to overestimate their generosity,” the authors said, speculating that the standard of tithing may cause Christians to feel they’ve given enough.

Most of the respondents were financially stable, and admitted their giving levels were surface level. Only 6% of respondents to the survey underpinning the report believe their donations represent a significant financial sacrifice for themselves, while 40% say “it’s no sacrifice at all.” While four in 10 said they should give more than they do, three-quarters of those who give at least 2% of their household income believe their giving levels are appropriate.

Access to MinistryWatch content is free. However, we hope you will support our work with your prayers and financial gifts. To make a donation, click here.

The study concludes many donors could give more than they do. Respondents’ reasons for not giving more might offer clues for how to address their reluctance. Nearly six in 10 (58%) said financial uncertainty restricted their giving, while 54% had concerns about whether or not their donations made a difference. Another 43% admitted they just “need to do better.”

Despite their reluctance, donors are more than willing to pat themselves on the back for their donations—even if those pats are harder than they deserve. Asked to estimate their giving percentage, respondents put their estimated percentage of donations at 4.6%.

The study uncovered a direct correlation between donors’ perceived ability to indulge in luxury purchases and amount contributed. Respondents indicating their incomes allowed them to only meet their basic needs gave an average of 0.73% of their income, while those saying they could afford just a few luxuries gave 1.14% of their income, those believing they could afford “a number of luxuries” giving 1.42% and those saying they had “plenty for many luxuries” giving 1.67%.

Respondents were also asked what they would do with funds not given to charity. Just more than one-third (34%) would have used their funds for necessities such as household expenses or paying off debt. Another 16% would have made indulgent purchases, 4% would have given the funds to friends or family, and 44% would have put it into savings.

Overall, there is room to improve funding levels among donors. While 2% indicated they give a lot more than they should and 7% said they give a little more than they should, 29% believe they should give a little more than they do and 11% said they should give a lot more. Just over half (51%) said they give about the right amount.

Fundraisers can gather other major insights from the reasons donors gave when asked why they don’t give more. While the most-frequently given answer was unsureness about their financial future (42%) and nearly one quarter (24%) said they simply couldn’t afford to, 25% said they can’t find organizations they trust, 23% are not sure where their donations will make a difference, another 23% said they never think about it, 21% “need to learn generosity,” 19% are overwhelmed by the number of donation options they have, 16% can’t find organizations that matter to them, 10% say their income varies month to month and 7% believe their spouse or partner would oppose a donation.

The MinistryWatch database rates more than 1,350 of the country’s largest ministries—representing more than $51 billion in revenue—based on financial efficiency, financial transparency, and donor confidence. Donors can also filter ministries based on sector, such as community development, rescue missions, and pro-life organizations.

A version of this article was originally published by The NonProfit Times.

TO OUR READERS: The mission of MinistryWatch is to help Christian donors become more faithful stewards of the resources God has entrusted to them. Do you know of a story that will help us fulfill our mission, or do you want to give us feedback about this or any other story? If so, please email us at [email protected].