The year in charitable giving

Overview

This episode explores the economic dynamics of charitable giving in 2025, highlighting how federal funding cuts and major events like government shutdowns spurred private donations. It also delves into affordability challenges, the push for public utilities, the economic struggles of Latino immigrants amid deportation fears, and practical strategies for sticking to financial New Year’s resolutions.

Notable Quotes

- You have to choose, live on the street or go without food. – Fidel, on the economic toll of immigration raids.

- Make procrastination more expensive than action. – Katie Milkman, on overcoming financial procrastination.

- Why don’t we take this money that we’re using to line shareholder pockets and put that back into the actual service? – James Baratta, on the push for public utilities.

🎁 Charitable Giving in 2025

- December accounted for a third of annual giving, with GivingTuesday alone raising $4 billion from 38 million donors.

- Federal funding cuts, particularly under the Trump administration, forced nonprofits like the International Rescue Committee and Feeding South Florida to rely heavily on private donations.

- Nonprofits saw increased donations during crises, such as the 2025 government shutdown and natural disasters like the L.A. wildfires.

- Despite donation growth, organizations like Feeding South Florida noted that rising needs outpaced contributions.

📉 Economic Challenges and Tariffs

- 2025 saw significant economic disruptions, with tariffs being a major policy story.

- Customs broker Gretchen Blau described the confusion caused by fluctuating tariffs on goods like aluminum and brass, which created challenges for businesses and consumers.

- Rising electricity costs, driven by increased demand and investor-owned utilities prioritizing shareholder profits, sparked a movement toward public utilities.

🏠 Public Utilities and Affordability

- Advocates like James Baratta argue that public utilities could reduce costs by reinvesting profits into services rather than distributing them to shareholders.

- In New York’s Hudson Valley, a coalition is pushing to create a publicly owned utility, projecting $15 million in savings in the first year and $200 million annually by year 30.

- Investor-owned utilities have resisted these efforts, citing concerns about government inefficiency and potential negative impacts on ratepayers.

🚨 Economic Parallels Between Immigration Raids and the Pandemic

- Latino immigrants in Los Angeles face economic hardships and fear due to immigration raids, reminiscent of the COVID-19 lockdown.

- Many workers, such as carwash employees, have lost jobs, with some going months without steady income.

- Organizations like Clean Car Wash and Nourishing Hope have stepped in to provide food and legal aid, drawing parallels to their pandemic-era efforts.

💡 Financial New Year’s Resolutions

- Behavioral scientist Katie Milkman explains that procrastination on financial goals stems from present bias, where immediate rewards outweigh future benefits.

- Strategies to combat procrastination include setting deadlines, creating accountability systems, and using commitment devices like financial penalties for unmet goals.

- Financial educator Elise Fulmore suggests creating friction in spending habits by using separate accounts for discretionary spending and asking reflective questions before making purchases.