AUSTIN, TEXAS — Austin-area residents give to charity at a higher rate than the nation overall, according to new research from Austin Community Foundation. Charitable contributions represent an estimated 2.4% of income in the Austin MSA, compared with a national average of approximately 2.2%.
The report estimates that Central Texas generates between $4.5 billion and $5.5 billion in charitable giving annually. Of that amount, an estimated $1 billion to $1.5 billion represents giving that donors are likely to make but have not yet directed to a particular organization or cause. The finding points to an opportunity to connect more charitable resources with the people, issues and organizations shaping the region’s future.
A Generous Community, A Growing Opportunity considers what could help Central Texas convert its existing generosity and expanding wealth into sustained community investment. The research looks at Austin’s economy, population growth, giving patterns and comparisons with other metropolitan areas.
Among the peer regions examined, the Austin MSA’s estimated giving rate is higher than the rates in Pittsburgh, Cincinnati and San Diego, but lower than Houston and Dallas. The comparisons suggest that a strong economy is only part of the equation. Regions with long-established philanthropic cultures have built networks and institutions that make giving visible, communal and easier to join.
“Central Texas is already a generous community. Our opportunity now is to help more donors connect the causes they care about with the needs of the place they call home,” said Mike Nellis, CEO of Austin Community Foundation. “By strengthening those connections, we can help ensure that Central Texas’ growing prosperity creates greater opportunity for everyone across the region.”
Central Texas’ philanthropic potential is increasing alongside its economy and population. The Austin metropolitan area generated $227 billion in economic activity in 2022, an increase of 38% from 2019. At the same time, new residents, entrepreneurs and affluent households are bringing greater charitable capacity to Central Texas, and many are still deciding which causes and communities they want to support.
The report also draws on national research about the giving trends and needs of next-generation and affluent donors:
- 41% of next-generation philanthropists say they struggle to identify good causes to support.
- 46% of next-generation philanthropists say they find it difficult to measure the impact of their giving, while 64% prefer to support specific, visible causes rather than give generally to institutions.
- 93% of affluent donors believe their gifts can make a difference in their communities, and an average of 79% of their giving goes to organizations serving their local areas.
These findings point to the importance of helping donors understand local issues, discover effective organizations, and make charitable decisions that reflect their values. They also underscore the role nonprofits play in clearly communicating the needs they address, and how donor support strengthens Central Texas.
For nearly 50 years, Austin Community Foundation has connected donors and charitable resources with community needs across Central Texas. Through philanthropic advising, grantmaking, scholarships, impact investing and community leadership, ACF provides the local knowledge, relationships and tools to help donors give effectively and support long-term community impact.
Austin Community Foundation plans to release a companion analysis, the Central Texas Transfer of Wealth report, in early 2027. The companion analysis will examine the amount of wealth expected to change hands across the region and what capturing even a modest share for charitable purposes could mean for Central Texas.
