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Individual Charitable Donation and Household Spending

The weight of individual charitable contribution in the total contribution has decreased significantly since 1979. The fraction of household income spent on cash contribution has also declined during the same period. We examine the factors behind these trends. We find that stock market return, consumer confidence, and religiosity are important in explaining the change in the proportion of total contribution attributed to individuals. The household spending on cash contribution is affected by stock market return and volatility, home price, and government spending on welfare.