Study Finds Climate Risks Boost Charitable Giving – But Some Nonprofits Are Left Behind
As climate-related disasters become more frequent and severe, a new study co-authored by Schulich Professor Gregory Saxton finds that donors are responding with their wallets – but not all charities benefit equally.
The research, titled “Climate Risk and Donations to Nonprofit Organizations,” was published in the Journal of Business Ethics and co-authored by Saxton, together with Tahmina Ahmed, Mohammad Maruf Hasan and Xing Huan.
Analyzing more than 1.2 million IRS filings from U.S. nonprofits between 2010 and 2021, the study found that as climate risks rise – through events like floods, wildfires, and hurricanes – donations to many nonprofits increase significantly, especially those providing direct community support such as hospitals and human service organizations.
However, the research also uncovered a complex side to this generosity. While local and donor-focused organizations tend to see boosts in donations, others – particularly international aid and membership-based organizations – often experience declines. The study further suggests that when governments step in with funding after climate events, private donations can decrease, a phenomenon known as the “crowding out” effect.
“Our findings show that people are paying attention – when climate risks rise, so too does the urge to help,” said Professor Saxton, who teaches Accounting at Schulich. “But this giving isn’t evenly distributed. Donors tend to support organizations addressing visible, immediate needs, which can leave other important causes underfunded. Understanding these patterns is crucial for nonprofits preparing for a more climate-affected future.”
The study highlights both ethical and practical implications for nonprofit leaders. On one hand, it underscores how environmental crises activate moral and social responsibility in donors; on the other, it warns that resource imbalances could deepen as funding flows toward short-term relief rather than long-term sustainability.
The authors suggest that nonprofits adapt their fundraising and communication strategies to account for climate-related donor behaviour and potential shifts in government support.
“Climate change isn’t just reshaping our environment – it’s reshaping philanthropy,” adds Saxton. “Nonprofits that understand how donors respond to climate risk will be better equipped to build financial resilience and serve their communities when they’re needed most.”