What gives in Nebraska? The Buffett effect and a culture of giving
Did you know? When we look at which states receive the most charitable dollars per capita, Nebraska punches above its weight. That’s one of the findings from Dollars and Change: A Look at Individual and Institutional Giving Across the United States From 2015 to 2022, a report released in September by Candid, GivingTuesday, and Network for Good. The study analyzes trends by recipient organization size, issue area, and location, as well as economic conditions.
Here we’ll look at what makes Nebraska stand out in the data—and why.
Nebraska receives more per capita from both individuals and grantmakers
It’s no surprise that the states with the largest populations and the most nonprofits—California, Texas, New York, and Florida—receive the most charitable dollars overall. Nebraska ranks 37th for population and 36th for the number of nonprofits. Yet, per capita, the state consistently ranks in the top five for charitable dollars received, both from individuals and from grantmakers.
Only Washington, D.C.—which receives by far the most charitable dollars per capita—also shows robust giving from both individuals and grantmakers. But unlike Nebraska, D.C. also has the most nonprofits per capita.
Why would a state with relatively few residents and nonprofits receive more charitable dollars per capita? There are a few possible factors.
The ‘Buffett effect’
Warren Buffett, the CEO of Omaha-based conglomerate Berkshire Hathaway and currently the sixth wealthiest person in the world, has an outsized impact on the state’s giving landscape. He’s given tens of billions to Buffett family-affiliated foundations, and while not all are based in Nebraska, three of the state’s top 10 grantmakers are The Susan Thompson Buffett Foundation, The Sherwood Foundation, and Buffett Early Childhood Fund. These grantmakers account for about 17% of all grant dollars awarded to Nebraska-based nonprofits. In addition, Buffett announced in June that he would leave his fortune to his children, who will have 10 years to give the money away.
“Warren Buffet is one of many successful business and community leaders who have generously shared their success through their philanthropy,” says Omaha Community Foundation president and CEO Donna Kush, but not the only one. “We expect strong giving to continue for years to come because of the transfer of wealth happening across our region, and across the entire pool of philanthropists. It is part of our culture and what gives our region a competitive advantage.”
A Nebraska Community Foundation study found that over the next 10 years, more than $100 billion in assets will be transferred to the next generation in the state. The foundation is calling on donors to consider leaving 5% of that wealth to their communities, and that message is resonating, says Carrie Malek-Madani, director of marketing and communications. “They want to give today to the projects that are important to them, but they also want their legacy to be felt in their community long after they are gone.”
A strong culture of giving?
The report’s researchers posit that a relatively stable economy, strong religious influences, and Midwestern values may also contribute to a strong culture of giving.
First, at the organizational level, the data shows that the state also has a relatively high number of both nonprofits and grantmakers. Despite being in the bottom third for the total number of nonprofits, Nebraska ranks in the top quarter for the number per capita. Similarly, in 2022, it ranked 35th for the total number of grantmakers but 13th for the number per capita. And grantmakers in Nebraska allocate more than 60% of their grant dollars to local organizations.
Second, at the individual level, AmeriCorps ranks Nebraska second in the nation in “informal helping” (defined as neighbors helping one another with house sitting, watching each other’s children, lending tools, etc.), fourth in charitable giving, and seventh in formal volunteering.
“Philanthropy is embedded in who we are as Midwesterners,” says Kush, pointing out that many of Nebraska’s museums and universities received philanthropic support more than a century ago. “Those early donors set a standard, expectations, and values for future generations to follow.” The Omaha Community Foundation is the 12th largest community foundation in the country, awarding more than $280 million in 2023.
“Community involvement begins early in Nebraska,” says Malek-Madani. According to a survey the foundation helped field, over 70% of middle and high school students volunteer at least a few times a year, and 76% say they feel connected to the place where they live. “When you live in a rural community, you realize that if you want certain amenities, you have to be the one to roll up your sleeves and create them,” she notes. “We work with Nebraskans every day who are lending their valuable time, talent, and treasure because they feel a real sense of responsibility in creating the community they want to live in.”
“It was fascinating to see that, with data from 2015 to 2022, Nebraska’s strong performance in both individual and institutional giving wasn’t just a random occurrence but a consistent and meaningful trend,” says Siqi Deng, a data scientist at Candid. “Individual and institutional giving each have their nuances, but when aligned, they reveal deeper, shared drivers behind philanthropic behavior. Through collaborations like this one with GivingTuesday and Network for Good, we’re able to uncover insights that would otherwise remain hidden, and in turn, shape a more informed and impactful philanthropic landscape.”
Photo credit: Stuart Isett/Fortune Most Powerful Women