Giving Tuesday 2023: A Reflection on Diminished Participation and Stagnant Donations

In the philanthropic world, GivingTuesday has emerged as a beacon of generosity and communal giving. However, the 2023 iteration of this esteemed day presented a perplexing scenario. Despite an overall increase in donations, reaching $31.1 billion, the increase was a mere 0.6%, paired with a concerning 10% decrease in donor participation. This shift marked a critical moment of reflection for those invested in the culture of giving and philanthropy.

The Paradox of Increased Funds and Decreased Participation

Whole Whale , a digital agency focused on the non-profit sector, delved into this perplexing situation. They noted the marginal increase in donations juxtaposed with a significant drop in donor engagement. This trend, as highlighted by the CEO of GivingTuesday, stirred a blend of inspiration and concern within the community.

“However, we are concerned to see a decline in participation in line with giving trends from the past year. GivingTuesday’s mission is to inspire generosity among as many people as possible, not just raise as many dollars as possible. Generosity has such important correlations with civic participation, community cohesion, and well-being.” -Asha Curran, GivingTuesday’s Chief Executive Officer

Exploring the Underlying Causes

Several hypotheses were proposed to explain this downturn:

1. Economic Concerns: The stagnation in donor giving was partly attributed to growing economic apprehensions among individuals, affecting their capacity or willingness to donate.
2. Political Disengagement: The mood and political engagement of the American community were considered contributing factors. Notably, the surge in donations during the 2019 and 2020 elections highlighted the interplay between political climates and charitable giving.
3. Global Crises Impact: Significant global events, such as the crisis in Gaza and Israel, were believed to have redirected potential Giving Tuesday donations to other urgent causes.
4. Nonprofit Participation Dynamics: The value proposition for small to medium-sized nonprofits to participate in Giving Tuesday was questioned. With the day becoming increasingly noisy, these organizations might find it less strategic to compete for attention, thus affecting overall participation.
5. The Scarcity of Attention: The concept of attention scarcity was raised, suggesting that when everyone is vying for attention, the impact of individual messages diminishes. This could lead nonprofits to choose quieter times for fundraising efforts.
6. Competitive Nature of the Day: The intense competition among nonprofits for finite resources within a 24-hour period was seen as potentially counterproductive. This could lead to a reevaluation of the timing and strategy of marketing and fundraising efforts.

Looking Ahead: The Future of Giving Tuesday

As we venture into future iterations of Giving Tuesday, these insights prompt a reassessment of strategies. The looming question remains: How can the philanthropic sector adapt to ensure that the spirit of Giving Tuesday continues to flourish, not just in monetary terms but in widespread participation and engagement?

This analysis underscores the need for a nuanced understanding of donor behavior and the evolving landscape of philanthropy. The year 2023 serves as a crucial learning point, potentially reshaping the approach to this significant day in the years to come.