Chris Kuchanny on the Change In Charitable Donations Post COVID-19

Chris Kuchanny Discusses the Change In Charitable Donations Post COVID-19

SURREY, UK, August 15, 2021 /EINPresswire.com/ — As an impact investor and philanthropist, Christopher Kuchanny is interested in statistical data about charitable contributions, and keeps up to date on trends in the charitable world.

Analysing the statistics released by CAF in their annual World Giving Index reveals some interesting facts about people’s charitable behaviour since COVID began. CAF’s measures are based on the world’s largest survey of charitable activity – some 1.6 million people. Participants are asked whether, over the prior month, they had i) helped a stranger, ii) donated money and/or iii) volunteered time. Collectively the numbers for 2020 are positive, with the global index flat, or rising across all three measures. An unchanged 19% of the global population donated their time; 31% donated money, a rise of 3%; and a record 55% (over 3 billion people), helped a stranger.

At first blush, this seems encouraging. However the global picture disguises less appealing trends at the country level. There’s been a significant shift regarding which countries are most generous, with leading Western nations such as USA, UK, Canada & Netherlands dropping out of the top 10, and less developed nations, such as Ghana, Uganda and Nigeria rising into the top 10.

Notably, the USA fell from first place in 2019 to 19th place in 2020, with its total giving score falling sharply to 43% from 58% the year before. Canada plunged from 6th to 35th, recording a -17% fall in giving score. The UK also recorded a notable fall of -13% in giving, dropping to 22nd from 7th in the global giving ranking.

The rationale for this change is not certain. It is likely to have been heavily influenced by the COVID pandemic, which has led to many people being held in a cycle of fear, hoarding resources to offset the financial impact of the crisis. In addition to a general rise in nervousness about the future, lockdowns have diminished the opportunity for people to give. The higher prevalence of lockdowns in Western nations is also likely to be a significant factor in skewing the regional disparities mentioned above.

The impact of the decline of giving in Western countries is likely to have had an outsized impact on the value of overall giving worldwide. This is not immediately apparent from the CAF World Giving Index, as it does not measure the notional value of giving. But when you consider that the US is the world’s largest financial donor, estimated by the National Philanthropic Trust to be $450 billion a year, then the impact of a decline in American giving has a large impact on dollars received by charities around the world. Using the CAF index as a proxy, the decline in US respondents who donated money from 61% to 45% equates to a $118 billion drop in financial contributions. This drop dwarfs the financial increase of smaller nations, equating to over 10% of the entire economy of Indonesia (as measured by GDP), the top-ranked CAF Index country!

The calamity of falling support for charities occurs at a time when demand for their services is rising, creating a perfect storm. According to CAF a third of UK charities could not last more than 6 months without additional financial support. In Brazil that number rises to almost 60%. The services offered by many charities are often not provided by governments. In many cases the support offered by charities is a life-giving, essential service, that would otherwise leave people in crisis. Wherever possible, governments should support charitable entities providing vital services; this is not only a social justice issue, it is also fiscally prudent, as it is often cheaper for governments in the long run than providing such services themselves.

At the same time, Chris Kuchanny believes that all of us, particularly in the West, can take inspiration from residents in some of the poorest nations, who have increased their giving of time, finances, and support to strangers during this crisis, and seek opportunities to do the same. We may not be able to do it all, but we must not ignore the suffering of so many and should do what we can to help make the world become a better place in some way, however small, each day.

Caroline Hunter
Web Presence, LLC
+1 786-551-9491
email us here

Chris Kuchanny on the Change In Charitable Donations Post COVID-19 1