How American Consumers’ Charitable Giving Amounts Peak

While nonprofit and other philanthropic causes can benefit from reliable, year-round giving, the prevailing belief is that most Americans wait until the end of the year to pass along any monetary gifts. Traditionally, this is attributed to a blend of a season of giving mentality around the holidays along with the impending deadline to make eligible contributions for the concluding tax year, as donations to 501(c)(3) organizations are typically tax deductible. 

Alkami researchers sought to better understand this widely held belief by conducting transaction analysis of monetary gifts to more than 150 different major charities from account holders across our panel from January 2022 through March 2024. While there are 1.4 million tax exempt charitable organizations in the U.S., Alkami’s research provides an overview for evaluating general trends among major charities. The study confirmed charitable giving is seasonal, with gifting peaking in December 2022 and 2023. Notably, the amount per gift increased in the data set by 17.2% while the number of donors showed no significant rise.

When American Consumers Donate Across the Seasons

While dollar amounts may peak toward the end of the year, Alkmai Research wanted to determine whether the total number of donations also peaks in December. This can be important information to help nonprofits and other charitable organizations better understand and manage their finances as consumer donations ebb and flow. 

Alkami researchers further examined consumer trends by evaluating whether, and when, the number of charitable donations peaked. The data revealed donation frequency, unlike amount, does not show any clearly demonstrable seasonality across the 27 months that were evaluated. This indicates that, while philanthropically-minded Americans are likely to give more in December, they are also likely to give regularly throughout the year.

Who Receives American Consumers’ Charitable Donations

As much as dollar amounts matter, so does where philanthropic contributions are headed. Singular contributions by living individuals make up 71% of charitable giving, and these Americans tend to have favorite causes they repeatedly support. 

Alkami research revealed clear leaders when it comes to receiving donations from American consumers, uncovering repeat behavior, with nine of the top 10 organizations from 2022 making the list of top 15 for 2023.

When American Consumers Receive Tax Refunds 

With annual tax filings not officially due until April 15, 20-25% of Americans wait until the last two weeks prior to the deadline before filing. Many could be incentivized to file early in order to gain access to the extra funds they expect, or hope for, from their tax refunds.

Alkami researcher’s analysis confirmed the majority of taxpayers are receiving their refunds well in advance of the April deadline. In both 2022 and 2023, 52% of refund dollars were paid out in the first quarter of the year. While 2021 data shows a lower 44% paid in the same time period, the deadline was also postponed to May 17 to provide financial hardship relief in the wake of the COVID-19 pandemic.

How Consumer Tax Payments Impact Seasonal Fund Availability

While April 15 looms large for most Americans, a portion of the population is also responsible for making additional payments for situations such as estimated tax payments for interest, capital gains, or self-employment income. These payments are in addition to or beyond the funds automatically deducted from a typical paycheck. 

Interested in learning how these payments impact cash flow for consumers, Alkami researchers explored federal tax payment volume based on a panel of account holders. The data indicated that while April remains the focus of seasonality, those making estimated payments account for spikes in financial activity in June, September, and January.