Adam Nash’s Post

The latest Giving USA report reveals a dip in charitable giving in 2022, despite an overall generous half a trillion dollars donated. This decline calls for nonprofits to revisit and strengthen their fundraising fundamentals in these challenging economic times. As we adapt to this 'new normal', let's discuss innovative strategies for donor engagement and sustaining philanthropy. Read more in our latest blog post 🔗 https://lnkd.in/emsbyRhy

"Giving Continues Its Decline, Down 2.1% in 2023. Can Fundraisers Turn the Tide in 2024?" Many nonprofits are coming off two years when inflation wiped out gains in giving. Overall charitable giving dropped 2.1 percent in 2023 after inflation, according to the most recent “Giving USA” report...While 2023’s drop in giving is discouraging, there are signs that charitable giving may finally be settling into a new normal after several years of being buffeted by unusual events like the pandemic and record inflation. Read the full article (subscription required) at https://lnkd.in/eGuzMyF4.

The latest "Giving USA" report highlights significant changes in the philanthropic landscape as we enter the second half of 2024. Despite recent challenges for nonprofits, there is hope ahead. The report provides valuable insights on the current state of charitable giving and how fundraisers can adapt. Key Report Findings: • Overall Decline in Giving: Charitable giving dropped by 2.1% in 2023 after adjusting for inflation. • Individual Giving: Contributions from individual donors fell by 2.4%, continuing a decade-long trend of decline. • Foundation Contributions: Despite the overall drop, foundation giving remained steady, contributing 19% of total giving ($103.5 billion). • Bequests and Corporate Donations: Bequests accounted for 8% of giving ($42.7 billion), and corporate donations maintained a 7% share. • Impact of Inflation: Inflation significantly affected donor capacity and nonprofit expenses, particularly in essential areas like food and services. • Cautious Optimism for 2024: Early 2024 has shown a positive start, with fundraisers hopeful about donor confidence and potential recovery. • Wealthy Donors: While megagifts (donations of $1 million or more) declined from 2022, the first five months of 2024 saw increased contributions from high-net-worth individuals. • Recurring Giving and Giving Circles: Nonprofits are increasingly focusing on recurring giving programs and creating giving circles to engage and retain donors. • Economic and Political Factors: The upcoming presidential election and ongoing geopolitical uncertainties may influence donor behavior and charitable giving trends. #Philanthropy #Fundraising2024 #Donortrends #DonorEngagement

Key findings from Giving USA 2024: The Annual Report on Philanthropy for the Year 2023 reveal that individuals, bequests, foundations, and corporations donated an estimated $557.16 billion to U.S. charities in 2023. Total giving experienced a 1.9% growth in current dollars, hitting a new high. However, when adjusted for inflation, giving actually decreased by 2.1%, as the inflation rate stood at 4.1%. The positive growth in current dollars was supported by the strong performance of the stock market and GDP, surpassing initial expectations in 2023. Despite the increase, total giving in 2023 has yet to surpass the inflation-adjusted peak achieved in 2021.

In 2023, fundraisers heard a fair amount of dismal news about giving. The Giving USA Foundation report showed a record 10 percent decline in philanthropy, and the Fundraising Effectiveness Project noted a decline in giving as well. However, 2024 is looking rosier for those raising funds. Three new reports give indications that giving is looking better. The Philanthropy Outlook 2024-2025 from the Indiana University Lilly Family School of Philanthropy predicts giving will increase 4.2 percent in 2024 and 3.9 percent in 2025. The donor confidence survey, released today, shows more donors – up 8 points from last year—plan to give this year as much or more than they did last year. Finally, GivingTuesday released its GivingPulse report, which found an uptick in donors who gave to registered charities increased. To see more data on all the reports, click through to check out the story. https://bit.ly/3PvMtA2 National Council of Nonprofits

Charitable Giving in 2023 was down 20-30% and it wasn’t just because of the economy. This decline started in 2022 and unless the issues aren’t addressed, it will only continue. Overall giving was down 20-30%, representing almost $60 BILLION dollars. Number of givers was down 10%. It wasn’t just the economy because Black Friday spending was up 7.5%. The economy can’t be ignored, but the contributing factor was uncertainty. In 12 years of leading a non-profit, I saw charitable giving increase in bad times and good times, but it always declined in uncertain economic seasons. Here are the top 3 reasons giving has declined in my opinion. based on my engagement with the giving community in 2023. 1. Institutional Distrust We no longer know who to trust and trust is the economy of all business and donations. Divisiveness and failures of leaders have led to great institutional distrust which leads to people giving less or not giving altogether. The way to combat cynicism from distrust is transparency with finances and leadership. Trust must be built over time through consistency, honesty, and effectiveness. 2. Lack of Clear Post-Covid Vision Covid disrupted the approach of every organization and business. For some, this led to clarity of focus and they came out of Covid’s societal impact stronger. For most, they haven’t settled into their vision and strategy post-Covid. Trust and giving follows vision and execution. People are desperate for a hopeful and clear vision. Give it to them and the giving will follow. 3. Donors are more sophisticated and non-profits haven’t caught up The rise of impact investing and sophisticated giving strategies has been a benefit to many non-profits in expanding their influence for long-term sustainable change. Sophisticated donors want to be engaged by sophisticated and innovative non-profits. There is an opportunity for non-profits to catch up and invite donors to new, innovative approaches in 2024. I’m sure there is a reason for every person who chose not to give or give less, so feel free to share what I missed. Did you give more or less in 2023? If so, why?

Giving USA shows continued growth in overall current dollars estimated at $557.16 billion given to U.S. charities in 2023. Despite the large numbers, when adjusted for inflation, giving actually declined by just over 2%. As your organizations engage in budget conversations and planning for next year, it can be helpful to spend time digging into the report and understanding the changing face of philanthropy. #philanthropymatters #givingusa2024

The Giving USA 2023 Report on philanthropy was released the other day and Cincinnati was one of the first cities to hear about it. I want to be clear that I believe giving in the U.S. isn't down like headlines may read. I'm so glad to get to work with generous clients on a daily basis. Let me explain 7 reasons we should be more optimistic around giving in America: 1) 2021 (the best year for giving on record) was likely supported by donations in response to the immense needs of people in American stemming from the pandemic. Giving spikes naturally occur when natural disasters occur, wars break out etc. Given the severity of the pandemic, it's no surprise that there would have been a significant spike. 2) 2021 also was a time when people had "pandemic money" and instead of keeping it themselves, many donated to charities. 3) Since the end of 2021, we've seen higher inflation than in the recent past, so the "inflation adjusted" numbers are going to reflect that and be disproportionately impacted. Americans continue to give at about 2% of disposable income. Take away 4% for inflation and you're down 2%. It's really not a measure of generosity but of basic math. 4) These numbers don't include major sources of donations that either aren't included on a tax return (like life insurance proceeds or IRA beneficiary proceeds), and even money from Qualified Charitable Distributions are not easily known from tax return data. 5) "unallocated giving" was around $60B and not part of the total. This, in essence, reported revenue by nonprofits, not included in the total for various reasons. Perhaps my #4 thought is supported by this. 6) These numbers don't include supporting for people/causes through GoFundMe and similar organizations. While this isn't supporting a nonprofit per se, it is still a sign of generosity. 7) More people are looking at creative ways to "give" through social enterprise, impact investing etc. Many of the ultra wealth are using LLCs and not traditional vehicles. Again, while a nonprofit may not receive these funds, it doesn't mean that money isn't moving for good. #philanthropy #giving #generosity Melissa Brown Jim Yunker Greater Cincinnati Foundation Horizon Community Funds of Northern Kentucky Grants Plus Clark Schaefer Hackett Taft Stettinius & Hollister LLP SHP Better Business Bureau of Cincinnati Driehaus Insurance Group LLC Leadership Council for Nonprofits Movers & Makers Magazine https://lnkd.in/gijk2egj

Giving USA new report on giving in the US in 2023 validates what my clients are seeing - a continued drop in charitable giving by individuals, increased reliance on millionaires and billionaires, and increasing costs and needs. How do we address this? Ideas? Creative funding? It’s all a bit daunting for small nonprofits - not feeling the optimism at the moment! https://lnkd.in/eqRFWJhX

Great insight into the the shrinking middle donor! Thank you, Derric Bakker and Team DickersonBakker for an insightful article and the work you do for the sector of Development and Philanthropy. #4MinuteRead "Fewer and fewer middle-income Americans are donating to charity. A recent study by the Indiana University Lilly Family School of Philanthropy showed that the share of American households donating to charity declined from 66 percent in 2000 to less than 50 percent today. In another recent report, the Fundraising Effectiveness Project (FEP) noted the number of donors giving less than $500 was down 7 percent in the last year alone. For donors giving $100 or less, the drop was an even steeper 17 percent. For most of the last forty years, appealing to middle-income donors with a “one size fits all” approach has been the bread and butter of the fundraising industry. Many of today’s biggest fundraising agencies were built on this model. Those old patterns are failing fast, however, and an ever-increasing number of organizations are in a race to the bottom, competing to squeeze every drop from this fast-shrinking pool." These are five great tips from the article that we should think about as we build out strategies to engage this group. 1. Connect 2. Personalize 3. Tell Stories 4. Elevate the ask 5. Re-engineer Your Metrics #Newnarrative #TheMiddleDonor