Charity Scam Statistics in 2024
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Charity scams are everywhere. Fraudsters take advantage of situations to take money from anyone. It could range from a simple one-man operation to a more complex scheme by organizations.
Charity scammers take advantage of every unfortunate event. Based on Action Fraud’s data, 408 charity scam reports were made between January and November 2022. This resulted in a £2.3 million loss.
Keep reading to learn more about vital charity scam statistics you should know in 2023.
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- There was a 70% increase in charity scams in 2020, according to Scams Awareness Week.
- The United Kingdom (U.K.) National Fraud received 196 reports about fake fundraising for Ukraine crisis victims.
- In 2020, 200,000 new websites were registered for fake COVID-19 crisis fundraising.
- In 2022, nonprofit organizations raised around 25% of their online revenue.
- 50% of U.S. Households donate annually.
- Donations from Corporations had an increase of 23.8% in 2021.
- Individuals accounted for 67% of total giving.
- 64 years old is the average age of a U.S. donor.
- 5% to 10% accounts for millennial donors of average charities.
- 59% of Gen X are regular donors.
Charity Scam Statistics 2023
Scams, including charity scams, can be done in many ways. According to the VP of Experian Data Breach Resolution and Consumer Protection, Micheal Bruemmer, scams in 2023 can be done through phishing or social engineering.
Scams done by phone are called social engineering. In 2022, Americans wasted $40 billion to phone scams alone.
If you don’t want to fall victim to a charity scam, read these statistics to know what to look out for in 2023.
Charity Donations Scam Statistics 2023
Scammers will do everything to get their hands on your money. They will even exploit your empathy to do so.
From February to March 2020, there was an increase of 569% in cybercriminals using domains like “coronavirus” or “covid.”
Check these statistics for more information about charity donation scams.
1. There was a 70% increase in charity scams in 2020, according to Scams Awareness Week.
(ACNC)
Charity scams are growing. In 2020, Scams Awareness Week released a statement about the 70% increase in charity scams compared to 2019.
It can also be correlated that this increase happened during the first phase of the COVID-19 pandemic. Typically, fraudsters have taken advantage of the global crisis.
2. The United Kingdom (U.K.) National Fraud received 196 reports about fake fundraising for Ukraine crisis victims.
The U.K. National Fraud received almost 200 reports about charity scams for Ukraine’s crisis victims. Fraudsters take advantage of the situation to exploit money from different sectors.
3. In 2020, 200,000 new websites were registered for fake COVID-19 crisis fundraising.
The surge of the COVID-19 pandemic gave scammers new opportunities to take advantage of people’s empathy and fear. 200,000 new websites with domains containing keywords like “COVID or “Coronavirus” were recorded.
4. American Cancer Society of Michigan stole about $152,000 in donations.
The fraud’s mastermind, Mr. Ian Hosang, was charged with taking almost $152,000 in donations that passed through 23 of his nonprofits. The money came from online giving platforms wherein donors can choose between I.R.S.-approved charities.
Charitable Giving Statistics
People are innately generous. This is supported by the fact that 95% of the population join in charitable giving.
A financial donation is an easy and effective way of keeping the causes you believe in. People donate to charity for several reasons. It can be helping meet critical and basic needs, giving back to society, or responding to a request for funding.
Know more about these charitable giving statistics for informed giving decisions.
5. In 2021, almost $485 billion were donated by Americans to charity.
(AARP)
According to the Giving USA Foundation, Americans donated almost $48 billion to charity in 2021. This figure came out in their annual report on U.S. philanthropy. These contributions were given to health care, environmental protection, health care, arts, and other causes.
6. In 2022, nonprofit organizations raised around 25% of their online revenue.
(Neon One)
By the end of the year, nonprofit organizations had an increase of 17-31% of their online revenue. The growth can also be accounted for by the holidays in December—a timely thing to do during the season of giving.
7. 50% of U.S. Households donate annually.
(Neon One)
Derived from the CCS Fundraising’s Philanthropic Landscape Report, half of U.S. households donate annually, with 81% of affluent families giving. The data shows that many U.S. families are willing to contribute to charities.
8. Donations from Corporations had an increase of 23.8% in 2021.
(NP Trust)
Corporations gave a total of $21.08 billion in donations. This is an increase of 23.8% compared to 2020. Growth in corporate giving is observed, and it is expected to continue as part of companies’ corporate social responsibility.
9. Individuals accounted for 67% of total giving.
(NP Trust)
The largest source of donations came from individuals. A total of $326.87 billion were accounted for individual charity giving. This represents 67% of the total giving population in 2021.
This means that the majority of the funds did not come from corporations. It came from individuals who wanted to share a portion of their money with a good cause.
10. In 2016, American charitable giving went up 7 times compared to 1954.
From $54 billion in donations 62 years ago, it went up to $390 billion by 2016. The increase is evident since the U.S. population also doubled throughout the years.
Although there’s an increase in amount, giving only accounts for 2% of the national production. This is interesting because the amount being donated has not changed even if the country has become richer post World War II.
Charitable Giving Demographics
People are generally charitable. However, certain groups tend to be more giving than others. In the United States, the most giving people reside in Utah. 6.6% of their gross annual income is accounted for charity giving.
The demographic statistics of the most charitable people are below to know more about these groups.
11. 64 years old is the average age of a U.S. donor.
(Define Financial, Philanthropy Roundtable)
Older people tend to be more philanthropic. This is based on the data that 77% of households contribute headed by someone 61-75 years old. This is compared to a family run by someone 26-45 years old, accounting only for 60%.
People tend to be more generous towards the end of their lives as they have more time, money, and motivation to assist others.
12. 5% to 10% accounts for millennial donors of average charities.
This generation donates around $481 annually, and 84% contribute to charity and nonprofits. This age group also prefers donating funds through online transactions.
13. 40% of Millennial donors opt for a monthly donation system.
Millennials like to make recurring donations having it deducted from their debit or credit card every month. This generation primarily enrolls their card details in an auto-deduction system so that donations can be automated.
14. 59% of Gen X are regular donors.
Average Generation X gives a total of $732. Although there are fewer donors from Gen X than millennials, Gen X tend to start fundraising initiatives and volunteer. They offer their time and effort for causes they believe in.
In addition, Gen X can be reached through emails compared to millennials, where social media is the most effective medium.
15. The U.S. annual private philanthropy is around 1.44%.
Compared to any country, the U.S. gives more to charity. An estimated 1.44% of GDP is accounted for annual private philanthropy. This is almost twice what Canada can donate at 0.77%. Also, triple what the United Kingdom donates at 0.54%.
Below are several countries that lag with their annual private philanthropy in terms of GDP percentage:
- China: 0.03%
- France: 0.11%
- Japan: 0.12%
- Sweden: 0.16%
- Germany: 0.17%
Final Thoughts
The rationale behind charity giving is decent. However, some people like to take advantage of others’ kindness. As a donor, you should educate yourself on the legitimacy of the organizations you are donating to.
Knowing the different scams arising after a tragedy or during holidays is vital. Some even pretend to get donations for firefighters, police, or military service.
When you give, you should be wise about it. Ensure your money goes to the proper beneficiaries and verify if your donations go to the causes you fight for. This article was a great way to start your verification process.
