The Red Kettle donation posts of the Salvation Army are a long-standing part of the holiday season—also known in charity circles as the “giving season.” The dedicated men and women who stand in the cold, rain or snow to collect our loose change and dollar bills to help the less fortunate are outside supermarkets, on street corners and gathering places. But some of us have noticed that there may be fewer of them. As it turns out, there are also fewer coins ching-chinging into their kettles.
Chapters of the Salvation Army are reporting that donations for the charity’s Red Kettle Campaign– and for the year– overall are down.
The Washington Post reported that in 2022 the Red Kettle campaign received $102 million, a 19% drop from the $126 million earned in 2019.
“We have not yet seen throughout the nonprofit sector a return to the generosity and giving that we had seen before the pandemic,” Commissioner Kenneth G. Hodder, the Salvation Army’s national commander told the Post.
Charities as a whole faced an inflation adjusted 10.5% drop in giving in 2022, according to the Indiana University Giving America 2023 report.
“If there is less funding for utility assistance instead of, I’m making up the number here, but instead of serving 100, you might have to serve 95 until you can raise the other money to help with that 100,” Lt. Col. Ivan Wild, the southwest division commander for The Salvation Army told Phoenix ABC affiliate KNXV.
Why is there such a decline? The Giving USA 2023 report highlighted several key points and trends from the past year in philanthropy. Economic indicators significantly influenced the drop in giving. According to the report, thanks to a decline in the S&P 500, a decrease in disposable income, and a 40-year high inflation rate, it was expected that there would be an impact on philanthropic giving.
Who gives the most to charity in the US?
Bill Gates ranks first with 5,111 $5,111 $5,111. He is followed by Elon Musk with $1,950 $1,950 $1,950 a year; Michael Bloomberg with $1,700 $1,700 $1,700 and Warren Buffett with $759 $759 $759. These are some of the mega-donors who account for a good part of the total donations.
Despite the overall decline in 2022, there are a few bright spots in the report. Giving by foundations has grown as a share of total giving, increasing from 5% in 1982 to 21% in 2022 and giving by corporations, which includes grants and gifts made by corporate foundations, performed more strongly in current dollars amid unusual economic conditions.
With a strong end-of-year performance, vigorous employment figures and slowing inflation, there is reason to be optimistic that the Red Kettles may fill up at a faster rate for 2024.
