The holiday season — often synonymous with joy, connection, and generosity — is a time when communities come together to spread kindness and share what they can. In fact, many of us grew up learning that being a “Scrooge” was no way to find happiness. Instead, supporting the Tiny Tims of the world made for warm, fuzzy feelings and holiday cheer all around.

Unfortunately, this year, tough economic realities and shifting priorities stifle many Americans’ giving spirit. A recent survey from Upgraded Points sheds light on how Americans navigate holiday donations, revealing a heartwarming determination to give despite challenges and disparities in giving habits nationwide.

A Tale of Two States of ­Generosity

Alabama stands as a beacon of holiday giving this year, boasting an impressive average donation of $215.42 per person — more than double the national average of $98.47. In a state known for its Southern hospitality, 70% of Alabamians surveyed plan to donate this season, showcasing a widespread commitment to spreading cheer.

Oregon follows closely with an average planned donation of $194.21, signaling that generosity isn’t limited to one region of the country. These high figures contrast sharply with states like North Dakota, where donations average a modest $36.82. Tennessee and North Carolina also linger on the lower end, planning to give around $37 each.

While it’s impossible to know for certain, regional income levels, values, and state economic status likely contribute to differences in donations. No matter the reasons behind these disparities, stricter budgeting impacts holiday donations differently across the country.

An Economy in Flux and Its Impact on Giving

Regardless of donation averages, economic pressures weigh heavily on many Americans’ minds this holiday season. Nearly 44% of survey respondents plan to give less this year than in 2023, and only 7.4% expect to donate more.

Interestingly, demographics paint a more layered picture. Men anticipate donating 56.5% more this year than women, and those earning over $100,000 plan to give an average of $237. Comparatively, lower-income groups will average donations of less than $50, a disparity that shows economic privilege remains a major determinant of one’s ability to participate in seasonal giving.

It makes sense that purse strings might tighten ahead of holiday giving. A recent U.S. Bureau of Labor Statistics release detailing 2023 consumer spending shows Americans spent 5.9% more on all household expenditures than in 2022. The reality? Even those with charitable intentions face pressure to prioritize necessities over philanthropy.

What Drives the Spirit of ­Giving?

Even in difficult times, the holiday spirit remains a powerful motivator for donating. Among those planning to give, 38.6% say the season’s joy inspires them to act, while personal connections to specific causes drive 28.9%. Around 27.5% cite having available funds as the primary reason for their donations.

Local charities remain a focus for many, capturing the support of 65.8% of Americans over national or international organizations. This suggests a strong community focus, where individuals see the tangible results of their generosity. Whether food banks, toy drives, or shelters, local causes give donors a sense of connection and impact.

Demographics also reveal intriguing patterns in the ways people choose to give. While 51.4% of Americans prefer cash donations, younger generations, particularly Gen Z, favor tangible items, with nearly 61% expressing a preference for giving nonmonetary gifts. This generational shift points to an evolving mindset in philanthropy, where material contributions like clothing, food, or other necessities are seen as equally, if not more, valuable than cash donations.

Broad Reflections on Giving Amid an Evolving Economy

The financial landscape shapes how, when, and why Americans donate. While many scale back due to personal constraints, others find innovative or alternative ways to maintain holiday traditions. These trends not only reflect the state of the economy but showcase the resilience of the human spirit.

Despite rising rents, utilities, and groceries, there’s an undeniable thread of hope running through these statistics. Even when facing financial challenges, 40% of Americans report giving more during this season than at any other time, proving holidays ignite a deeper sense of compassion and connection. The underlying desire to help others remains steady despite fluctuating donation amounts and shifting methods. Americans continue to donate generously to causes close to their hearts, rallying behind old traditions and new ones. Whether through credit card points, material gifts like food, or cash, the ways in which people give may change, but the motivation, rooted in kindness and community, endures.

Organizers this season might see spreadsheets with fewer financial contributions, but they will undoubtedly see countless families, communities, and charities lifting one another up. Holiday giving, after all, isn’t just about dollars and cents; it’s about the power of generosity to bring warmth and hope, even in the most challenging times.

— — —

This article was produced by Media Decision and syndicated by Wealth of Geeks.