Bequest giving in the United States rose by 19.7% in 2025, reaching an estimated $62.19 billion, according to the annual Giving USA report. This increase marks the largest growth of any source of charitable giving, while overall charitable contributions exceeded $600 billion for the first time, totaling approximately $617.20 billion.
Key Details
The report, researched by the Indiana University Lilly Family School of Philanthropy, highlighted that giving by living individuals grew by 4.1%. Adjusted for inflation, living donations saw a modest increase of 1.4%, while bequest giving outpaced inflation with a 16.6% growth rate. The trend indicates a shift in philanthropic behaviors as the 'Great Wealth Transfer' unfolds, with significant sums expected to flow from Baby Boomers and older generations to charitable causes.
Cerulli Associates estimates that $124 trillion will change hands in the U.S. through 2048, with about $18 trillion earmarked for charity. The surge in bequest giving in 2025 is seen as the beginning of a long-term trend, as many Baby Boomers reach their late seventies, suggesting that the peak of annual transfer activity may occur around 2034-2035.
Background
The findings prompt questions about the infrastructure needed to manage this influx of charitable funds. Philanthropic organizations and charities are urged to prepare for the anticipated increase in bequests, which have consistently grown by 20% or more in current dollars in three of the last four years.
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The rise in bequest giving could lead to increased funding for charities, impacting sectors such as healthcare, education, and social services. Increased philanthropic activity may also influence investment strategies for funds focused on social impact. Investors will watch for upcoming trends in charitable giving as Baby Boomers continue to transfer wealth to heirs and charitable organizations.