A Charitable Giving Reality Check By Amy Sewell

The Big Picture on Charitable Giving

For many organizations, the past year or two haven’t been rosy for charitable giving. But as fundraising professionals, it’s crucial for us to confront these difficulties—downturns and any other challenges—head-on.

It starts with understanding the current landscape and being nimble enough to adapt quickly.

The Numbers Game

Recent reports, such as the Giving USA 2024 Annual Report on Philanthropy, highlight a complex landscape.

In 2023, total charitable giving in the United States reached $557.16 billion, a 1.9% increase over 2022. While this growth is promising, when adjusted for inflation, it represents a 2.1% decline.

Individual giving, which accounts for 67% of total donations, grew by just 1.6% in 2023. This modest increase is a stark reminder that donor fatigue and changing priorities are significant challenges we face. Additionally, the pandemic-induced surge in giving has leveled off, with many donors now reassessing their giving patterns.

A Growing Challenge

The current economic climate is a double-edged sword. Inflation rates, which soared to 6.5% in 2023, have affected disposable incomes, leading to a decrease in the percentage of income donated by many households. According to the Charitable Giving Report by Blackbaud, donor retention rates have also declined, dropping from 45% in 2018 to 42% in 2022.

Beyond inflation, global crises, including geopolitical tensions and natural disasters, have diverted attention and resources, making it even harder for some nonprofits to secure consistent funding. This is especially true in an election year when solicitations for political campaigns are at an all-time high.

Hope and Opportunity for Your Organization

To thrive in this evolving landscape, we must be transparent and communicate about pressing needs:

• Enhance Digital Engagement—More often, donors explore digital channels first. Streamlining the donor experience and leveraging social media and digital campaigns to reach a broader audience is important.

• Focus on Donor Retention — Building strong relationships with donors through personalized communication, impact reporting, and recognition programs is more crucial than ever.

• Adapt to Changing Trends—Stay informed about emerging fundraising trends and be ready to test new strategies, pivoting as appropriate. Maybe incorporate new technologies or explore unconventional fundraising ideas—flexibility will be your greatest asset!

• Conduct Regular Donor Assessments — Regularly review and analyze your donor file. Identify trends, segment your donors, and tailor your communication and engagement strategies accordingly. If giving is down, consider immediate pivots such as:

• Optimize Digital Campaigns — Introduce strategic testing, focus on areas where you can pivot quickly. Consider the storytelling method, subject line tests, and optimizing donation page layout.

• Boosting Stewardship Efforts — Increase touchpoints with donors to show appreciation and inform them about their impact.

• Launching Emergency Appeals — When facing a true emergency—a shortfall or pressing need—communicate that crisis to encourage immediate donations.

• Enhancing Donor Experience — Simplify donation processes, offer multiple giving options, and provide personalized donor journeys.

Today’s fundraising challenges are real . . . but the opportunities for growth and innovation are equally compelling. Stay informed, adapt to change, and maintain a hopeful outlook. We can navigate these waters successfully and continue to make a profound impact.

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Amy Sewell has worked in the digital space for 22 years and drives the strategy behind all the digital projects completed at Douglas Shaw & Associates. Amy has run social media programs reaching over 2 million followers regularly, creating solutions on these networks that expand the reach and make personal connections with supporters. Amy excels at driving results!

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