With Americans donating around $560 billion to charity per year, the personal-finance website WalletHub this month released its report on the Most Charitable States, along with expert commentary, to highlight where people spend the most time and money helping others.
Most Charitable States
Wyoming topped the list at number one, the most charitable state in the country. It was followed by Utah, Minnesota, Maine, Delaware, Maryland, Oregon, Colorado, Pennsylvania and, at number 10, Nebraska.
Taking the 11 through 20 spots on the list were Virginia at number 11, Illinois, New York, Iowa North Dakota, Ohio, Kansas, Missouri, Montana and, rounding out the top 20, South Dakota.
California was far down the ‘charitable’ list, coming in at number 40 and last on the list was New Mexico, at number 50.
“The most charitable states aren’t just the places where people give the largest raw amounts of money. The share of the population contributing and the percentage of their individual incomes they’re willing to use to help others are big factors in showing how charitable people are. In addition, many people can’t afford to give much money, especially due to the influence of inflation, but they generously donate their time, which is just as important,” said Chip Lupo, WalletHub Analyst. “Wyoming is the most charitable state, in large part because residents spend an average of 33 hours per year volunteering, the second-most in the country. The state also has the second-highest percentage of residents who volunteer, at around 39 percent. In addition, residents of the Equality State generously give money to charity, donating nearly four percent of their adjusted gross income on average, the second-highest percentage in the country. On top of that, Wyoming has the second-most Feeding America food banks per capita, and it shelters 89 percent of its homeless population.”
Expert Commentary
What are the biggest challenges facing U.S.-based charities in the current economic environment?
“With inflation and economic uncertainty, many individuals and businesses have less disposable income to donate to charitable causes. As a result, charitable giving has not kept up with inflation. At the same time, economic hardship often leads to a greater need for charitable services, putting pressure on organizations to do more with potentially fewer resources. Finally, in an era of misinformation, charities must work harder to maintain transparency and the trust of donors and clients.”
Brad R. Fulton – Associate Professor, Indiana University
“There are many – inflation (occupancy, human resources, technology), finding and retaining qualified staff (wages, benefits, competition with for-profits), inability to invest sufficiently in organizational capacity and technology, competition for donors and funding sources, increasing inequality, and lack of a strong safety net system for a large segment of the population (the latter affects the level and types of needs as well as fundraising from sources other than foundations and the wealthy).”
Kirsten Grønbjerg – Director, Indiana Nonprofits Project; Distinguished Professor Emerita, Indiana University Bloomington
What advice do you have for choosing the right charity?
“Due diligence is key. With resources like GuideStar and Charity Navigator, the public has more comprehensive information about finances and expenditures at their fingertips than ever before. However, it is also important to take a more nuanced view of those expenditures. If a charity provides more interpersonal services that require humans to do the hard work in person in communities, it makes sense that they spend more on staff salaries for programs. If a charity offers more in-kind support, then they also spend less on payroll and more on goods that they procure for their constituents. Make sure you think critically about those financial reports and balance what you see with what the organization is actually doing. People who are looking for a charity to support should also look for a variety of ways to get involved. If the charity is only asking for money and has no other way to engage, that tells you something important, especially in these days and times when nonprofits are experiencing a watershed moment away from transactionalism.”
Bob Spires, Ph.D. – Associate Professor, University of Richmond
Do you believe charities should face increased regulations and scrutiny in order to reduce fraud?
“Increased scrutiny would reduce fraud. However, it would also cost charities more of their limited resources, so a balanced approach is needed. Ideally, technology could be leveraged to increase oversight without requiring additional resources on behalf of the charity.”
Colin M Slabach – Clinical Assistant Professor, New York University
