U.S. charities can look forward to a cold winter as nearly 68% of Americans say they will cut back on their giving in coming months, according to a study conducted in mid-August by Campbell Rinker on behalf of Dunham+Company.
The study pointed to three factors directly related to the economic climate across the U.S. that are influencing donors’ willingness to give:
- Reduced income due to job loss;
- The rising cost of personal or living expenses;
- Uncertainty over the economy.
This is a bad omen for charities because 43% of those surveyed said the economy would continue to decline, 31% said it would stay the same and only 17% expected it to improve.
One in 10 respondents plans to suspend philanthropic activity until the economy improves, the study, released Wednesday, found.
However, charities will still be able to rely on donors loyal to their causes. Seventy-eight percent of respondents said they intended to continue supporting those charities they have contributed to in the past.
“The findings of our study are not surprising, but they are a real concern because charities have just started recovering from the worst decline in giving in U.S. history,” Rick Dunham, president and chief executive of Dunham+Company, said in a statement.