What impact does inflation have on charitable giving?

Document type
Briefing
Corporate author(s)
National Council for Voluntary Organisations (Great Britain); Charities Aid Foundation
Publisher
NCVO
Date of publication
1 March 2010
Subject(s)
Social Policy, Poverty Alleviation Welfare Benefits and Financial Inclusion
Collection
Social welfare
Material type
Reports

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Briefing paper examining the effect of inflation upon charitable donations. The findings of the paper include: that the cost of goods and services tend to rise over time, in effect devaluing what charities can do with the same amount of income; the effects of inflation will not be uniform across the sector, with rising costs more likely to be an issue for large charities; and, donors tend to give round amounts, so it is unlikely that donations at an individual level will keep pace with changes in inflation. However, the paper concludes that it is important to keep in mind that while donations at the individual level may not keep pace with inflation, this does not mean that donation levels are stagnating overall.

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