Charitable giving
Charitable giving is the voluntary act of providing money, time, services, or goods to aid individuals or communities in need. Its primary goal is to support those facing challenges such as poverty, illness, or homelessness, but it can also extend to helping animals and funding larger initiatives, like constructing wells or shelters. While often motivated by altruism, some individuals and organizations may also be encouraged to give due to tax incentives offered by governments for charitable contributions.
The concept of charity has deep historical roots, with practices of giving spanning various cultures and religions long before the advent of Christianity. Notably, charitable giving is emphasized in Judaism, Christianity, and Islam, each highlighting its significance through teachings and requirements, such as the Jewish tithe and Islamic zakat. Charitable acts can occur through personal donations, local organizations, or larger entities like the American Red Cross.
In recent years, charitable giving has seen fluctuations, with record high contributions reported in 2023 in the United States, amounting to over $557 billion. However, there are concerns about potential declines in individual donations moving forward. Charitable giving remains a vital aspect of societal support, reflecting both individual values and community needs.
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Subject Terms
Charitable giving
Charitable giving refers to the voluntary giving of money, time, services, or goods with the intention of helping others in need. The purpose of this giving is to benefit those who face poverty, illness, homelessness, or some other circumstance that impairs their ability to provide for themselves. Charitable giving can also benefit animals, such as those in shelters, and can help to fund larger initiatives to help groups of people, such as providing a well in an impoverished country or creating a homeless shelter. While providing this help is the main purpose of charitable giving, some people and companies are prompted to give by tax breaks provided by the government for those who donate to charities.
Background
The origin of the word charity can be found in the Latin word caritas, which means "love." The word charity was used by Bible scholars as a translation for the Greek word agape (love of humankind) to differentiate this type of caring for others from the concept of romantic love.
While the word has roots in early Christian times, the concept of charitable giving predates Christianity by centuries. Ancient Greeks, Romans, Chinese, Egyptians, Indians, Muslims, and others all engaged in charitable giving. This ranged from giving alms—money or food given directly to the poor—to providing funds for building schools or supporting other projects that would benefit people, including those who could not contribute to such projects themselves.
Charitable giving is a key concept in all three Abrahamic religions: Judaism, Islam, and Christianity. Since at least 2500 BCE, Jewish law has required the giving of a tithe, or 10 percent of income, to be used to support those who are unable to support themselves. There are numerous verses in the Jewish Bible encouraging and even mandating charitable giving. The book of Proverbs, which is part of the Bible followed in both Judaism and Christianity, states, "Whoever is kind to the poor lends to the Lord, and he will reward them," (Proverbs 19:17, NIV).
Jesus Christ, an observant Jew, emphasized the need for charity in his teachings. For example, in the story of the Good Samaritan, Jesus discusses the Samaritan who gave generously of his time, service, and personal funds to care for the man who was beaten by robbers (Luke 10:25-37). Christians also see an example of caring for others in the way Jesus healed people, encouraged the care of widows and orphans, and treated those considered outcasts and outsiders with respect.
Zakat, or the practice of giving alms to the poor, is one of the Five Pillars of Islam and an important requirement for devout Muslims. Much like ancient Jewish people, ancient Muslims saw this practice as more of a formal tax-like requirement meant to benefit the overall community by providing for things that individuals could not afford on their own. Like contemporary Christians and Jewish people as well as many others, present-day Muslims are more likely to offer zakat as an individual offering directed in a way the giver feels best serves God's purpose.
While charitable giving is often tied to religious beliefs, not all charitable gifts are given for religious purposes. Individuals who follow other traditions or who practice no religion often give to help those in need simply out of concern for their fellow humans. This is often especially evident after natural disasters, such as Hurricane Katrina and Hurricane Sandy, when people gave millions of dollars to help those affected. Companies will also often give money, goods, or pay their employees to provide services to a charitable organization. They might do this out of concern for others, to build good will in the community, to receive tax breaks, or for a combination of these reasons.
Charitable giving can be done in a number of ways. It can be a personal transaction, where one person puts money, food, or some other needed item directly into the hands of another person. It can be done through a local organization, such as a church or community food pantry. It can also be done through a larger organization, such as the American Red Cross, the Salvation Army, or United Way, which combines the gifts of many people to help both individuals and groups of people, such as those affected by natural disasters.
Overview
Some countries offer tax breaks for those who give to charities. This is done as an incentive to encourage support for worthy organizations. It also recognizes that these organizations benefit the country by caring for those in need. Countries that offer these breaks have specific rules regarding what constitutes a charitable organization, what types of gifts are tax deductible, and how much can be deducted in a given year.
For example, in the United States, the Internal Revenue Service (IRS) allows deductions for donations made to institutions that have completed paperwork and been classified as charitable organizations. Donations can be made to these organizations in the form of cash, new or used goods, or time. Other charitable gifts include miles driven as a volunteer for a charity and items such as cars, artwork, jewelry, and real estate that are given to an eligible charity in support of that organization's work. In such cases, a piece of jewelry might be auctioned off to raise money for a charity, or a donated piece of real estate might become a new soup kitchen.
According to Giving USA, a project of the Indiana University Lilly Family School of Philanthropy, 2023 broke records for charitable giving in the United States. Giving reached the amount of 557.16 billion dollars. Corporate giving also increased by just over 3 percent to $21.80 billion. In contrast, individual giving decreased by over 6 percent to $319.04 billion. Some speculate that the United States may be entering a period of signifcant decreases in donating in the country.
Bibliography
"Charity (Tzedakah): Charity throughout Jewish History." Jewish Virtual Library, www.jewishvirtuallibrary.org/jsource/Judaism/charity.html. Accessed 23 Dec. 2024.
Childress, Rasheeda. “Giving Continues Its Decline, Down 2.1% in 2023. Can Fundraisers Turn the Tide in 2024?” The Chronicle of Philanthropy, 25 June 2024, www.philanthropy.com/article/giving-continues-its-decline-down-2-1-in-2023-can-fundraisers-turn-the-tide-in-2024. Accessed 23 Dec. 2024.
Daniel, Alex. "As Wealthy Give Smaller Share of Income to Charity, Middle Class Digs Deeper." The Chronicle of Philanthropy, 5 Oct. 2014, www.philanthropy.com/article/As-Wealthy-Give-Smaller-Share/152481. Accessed 23 Dec. 2024.
"Giving USA: 2015 Was America's Most-Generous Year Ever." Giving USA, 13 June 2016, givingusa.org/giving-usa-2016/. Accessed 23 Dec. 2024.
List, John A. "The Market for Charitable Giving." Journal of Economic Perspectives, vol. 25, no. 2, Spring 2011, pp. 157–80, home.uchicago.edu/~jlist/papers/The%20Market%20for%20Charitable%20Giving.pdf. Accessed 23 Dec. 2024.
Tomlinson, Michael J. “5 Takeaways from Giving USA: 2023 Annual Report on Philanthropy.” BDI, 10 June 2023, bdiagency.com/5-takeaways-from-giving-usa-2023-annual-report-on-philanthropy/. Accessed 23 Dec. 2024.