Despite Economic Challenges, Americans Give More to Social Causes, Edward Jones Study Finds

Yet more than half of respondents do not include charitable giving in their overall financial strategy

ST. LOUIS, September 27, 2022 /PRNewswire/ — According to new research conducted by financial services firm Edward Jones with Morning Consulting. According to the study, more adults (17%) plan to increase their contributions than decrease their donations (10%) this year. Of those planning to give more this year, 39% cite social/political issues as the catalyst.

The survey found that the biggest barrier preventing people from donating is not having access to excess funds (61%). Other barriers include saving for inflation (30% of donors and 20% of non-donors), not knowing where the funds are going (26% of donors and 17% of non-donors). -donors) and not knowing where to give. (8% donors and 5% non-donors).

“While we are pleased to see that Americans remain focused on continuing their giving habits, it is not surprising that there are concerns about the impact of charitable giving on their personal finances,” said Zachary Gildehaus, Principal Analyst, Client Needs Research at Edward Jones. “It’s important to remember that giving back can take many forms and charitable giving can be different depending on your personal financial situation. For example, if you’re unable to donate money, volunteering or even donating lightly used household items is a great way to connect with a cause you’re passionate about.”

Financial strategies for giving

Almost all Americans (93%) donate at least once a year, and those who do are more motivated to give for altruistic reasons. Believing in helping others in need (66%), having an impact on something that matters (50%) and having a positive impact on their community (40%) are the motivations that drive the most to donate to charitable causes.

Younger generations are more eager to incorporate charitable giving into their overall financial strategies, with half of Millennials and GenZers saying they have already done so or would like to do so, even if only for the tax benefits (52 % and 49%, respectively). Despite this desire to include donations in financial strategies, younger generations may not be aware of the myriad of options available, such as a donor-advised fund – a charitable giving tool that allows an investor to make a irrevocable contribution to the fund and receive an immediate tax deduction in the year of the contribution. The money is invested according to the preferences of the investor and any growth in the investment is exempt from income tax. Over time, the investor can then recommend grant applications or distributions to IRS-approved public charities they wish to support.

“To incorporate giving strategies into your financial strategy, it is essential that Americans seek advice from a trusted financial advisor who can guide them through the various resources and approaches available to understand what works best, such as adding charitable donations as a line item in your monthly budget. From the dollar amount to the time of year chosen to donate, there are several factors to consider,” Gildehaus added.

The role of the financial advisor

Surprisingly, very few adults work with a financial advisor when it comes to charitable giving, with only 23% of respondents using their advisor. Those who work with a financial advisor report being more determined in their giving strategies. In fact, Americans who work with a financial advisor feel more satisfied (35% vs. 17%) and excited (34% vs. 15%) after donating than those who don’t.

The survey also found that those who work with a financial advisor on charitable giving strategies are more than three times more likely (70% vs. 22%) to donate non-cash assets (stocks, real estate, interest businesses, etc.), which can have a greater positive impact on their financial situation and on the charity they support. Those who work with a financial advisor and use strategies like donor-advised funds can also see their contributions go further. Once the money is invested in a donor-advised fund, it can grow tax-free over time, increasing the charitable impact for investors.

Of those who work with a financial advisor, 78% of respondents said they were interested in including their family in a conversation about their charitable giving strategies. Donor-advised funds can help investors involve their families in giving during their lifetime, enabling joint or supervised charitable giving. They can also help when it comes to leaving a legacy, as a donor-advised fund can continue to pay out grants for a period of time or be named a beneficiary in a will, trust, plan pension or investment account.

Edward Jones will host a webinar on charitable giving on November 16, 2022. To register, go to: edwardjones.com/webinars. For more information on how charitable giving can be leveraged into your overall financial strategy, please visit: edwardjones.com/charitable-giving.

Methodology

The survey was conducted by global data intelligence firm Morning Consult among a national sample of 2,210 adults from August 11-14, 2022.

About Edward Jones

Edward Jones, a Fortune 500 company, provides financial services in the United States and through its subsidiary in Canada. The firm’s nearly 19,000 financial advisors serve more than 8 million clients with a total of $1.6 trillion in client assets under management. Edward Jones’ The goal is to partner for a positive impact to improve the lives of our customers and colleagues, and together improve our communities and our society. Through the dedication of the firm’s 50,000 associates and our branch presence in 68% of US counties, the firm is committed to helping more people achieve financially what matters most to them. The Edward Jones website is at www.edwardjones.comand its recruitment website is www.careers.edwardjones.com. SIPC member.

SOURCEEdward Jones

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