Are Massachusetts Residents Planning to Be Generous This Giving Tuesday?

One of the biggest campaigns for charitable giving takes place on the Tuesday after Thanksgiving, aptly named Giving Tuesday. But how much are Mass. residents planning on donating this year?

New MOA polling, conducted between November 18 and 21, 2024, asked over 500 Massachusetts residents about their plans to donate to charity this Thanksgiving season. The survey found almost half (49.8 percent) are planning to keep their charitable giving amounts the same this year as last year:

When looking at individual demographic groups, older Massachusetts residents are typically more likely than average to maintain their levels of giving, alongside those in higher tax brackets. 

However, just 17 percent plan to increase their charitable giving amounts compared to last year, and another 17 percent reported they may have to decrease the amount they give this year. 

There are many factors that come into play in individuals’ decisions and ability to donate to charity. While it’s a good thing a plurality of Massachusetts residents want to maintain their current charitable gifts, several issues in the Massachusetts economy could threaten such a robust philanthropic environment.

One may be the rising cost of living in Massachusetts. The MOA Opportunity Report Card ranks Massachusetts as one of the highest cost of living states in the country, following California, Hawaii, and Washington. If residents are already strapped for cash this holiday season, charitable giving may suffer as a result. In fact, earlier polling from September 2024 found rising housing costs and high cost of living as the most cited reasons people may be leaving Massachusetts for other states.

This brings us to another potential factor affecting charitable giving this year.

Data published by the U.S. Internal Revenue Service (IRS) and analyzed by MOA shows that Massachusetts experienced a net outflow of taxpayers to states like Florida, Texas, and New Hampshire – taking taxable wealth with them. In 2022, more than one in five tax filers leaving the state earned more than $200,000 per year – these people represent 55 percent of all taxable income fleeing the state. If those in higher tax brackets are likely to donate substantial funds to charities in Massachusetts, their exodus from the state may affect their giving to local institutions in the future.

As Massachusetts faces a combination of rising living costs and tax burdens as well as an exodus of high-income residents, the potential ripple effects on charitable giving are concerning. Addressing these economic challenges is crucial to foster an environment where generosity and economic stability can thrive side by side.