American individuals, corporations, foundations and bequests donated some $427.7 billion to U.S. charities in 2018, according to Giving USA 2019: The Annual Report on Philanthropy for the Year 2018.
Total charitable giving rose by 0.7% measured in current dollars year over year. Adjusted for inflation, total giving declined by 1.7%.
The report was researched and written by the Indiana University Lilly Family School of Philanthropy.
"After reaching record-breaking levels of giving in 2017, American individuals and organizations continued their generous support of charitable institutions in 2018," Rick Dunham, chair of Giving USA Foundation and chief executive of Dunham + Co.
"However, the environment for giving in 2018 was far more complex than most years, with shifts in tax policy and the volatility of the stock market. This is particularly true for the wide range of households that comprise individual giving and provide over two-thirds of all giving."
Several competing factors in the economic and public policy environments last year may have shifted some previous giving patterns, according to the report. Economic variables that shape giving, such as personal income, had relatively strong growth, while the fourth-quarter stock market decline may have had a dampening effect.
The policy environment also likely influenced some donors' behavior in 2018, the report said. The federal tax overhaul that doubled the standard deduction resulted in a drop in the number of individuals and households that itemize various types of deductions on their tax returns.
Whereas more than 45 million households itemized deductions in 2016, that number may have dropped to 16 million to 20 million households in 2018, reducing an incentive for charitable giving.
"Growth in total giving was virtually flat," Amir Pasic, the Eugene R. Tempel Dean of the Lilly Family School of Philanthropy, said in the statement. "Contributions from individuals and their bequests were not as strong as in 2017, while giving by foundations and corporations experienced healthy growth."