As rising prices and the lingering fallout from the nation's longest-ever government shutdown squeeze Americans' budgets, many are unable to give back this holiday season — and charities are feeling the strain.
Why it matters: Some of the largest charitable organizations in the U.S. are trying to stay hopeful despite rising demand and declining generosity.
- The Trump administration's federal funding cuts and federal layoffs earlier this year have also contributed to some nonprofits' financial instability.
What they're saying: The Salvation Army launches its annual Red Kettle Campaign on Thanksgiving — meaning it's too early to share current fundraising numbers, per national community relations and development secretary Dale Bannon.
- But with increased requests for assistance and rising costs, Bannon said the charity will need to surpass last year's roughly $100 million total to help the 28 million Americans it serves.
Toy Foundation manager of marketing communications Erin Wright says her organization also expects higher demand this year.
- "With the collective involvement of the toy industry, we are able to reach more children than ever, but demand continues to outpace supply," Wright tells Axios.
- "Every year, we witness incredible industry collaboration, and even small contributions add meaningful change."
One Warm Coat, which provides outerwear to people in need nationwide, saw a nearly 25% increase in nonprofits applying for coats through the program this year.
- It's now coordinating with about 1,900 agencies, up from 1,500.
- "We're telling nonprofits that we'd love for them to join the network — and we hope that we'll be able to get more people excited about holding coat drives and donating coats," president and CEO Beth Amodio tells Axios.
By the numbers: In Feeding America's most recent survey of partner food banks, 95% reported equal or higher demand in October versus September.
- The survey showed the largest share of food banks reporting a month-over-month increase in demand since data collection began in 2021, chief marketing and communications officer Monica Lopez Gonzalez tells Axios.
- The data reveals "the shock that the shutdown caused for neighbors needing food assistance and the food banks and agencies working to provide support," she says.
Worth noting: The Trump administration's "Big, Beautiful Bill" included new charitable contribution rules taking effect next year.
- Before the bill, Americans who itemized their taxes could typically deduct most of their charitable donations. Now, donations below 0.5% of an individual's adjusted gross income will not be eligible.
- For those in the highest income bracket, itemized deductions will be reduced to $0.35 per dollar, rather than the usual $0.37.
The bottom line: Charities are urging Americans to donate if they can, saying that even small contributions make a meaningful difference.
