Key insights on the changing landscape for fundraising and generosity

The new report from The Generosity Commission, "Everyday Actions, Extraordinary Potential: The Power of Giving and Volunteering," was initiated by leaders in the nonprofit world (Including my pal and JGA founder Ted Grossnickle) and is funded by philanthropic donors. It’s a comprehensive and authentic study of how giving is changing in our very generous nation.

The landscape for giving is changing. While it’s true that the total amount of money donated and volunteer hours contributed have increased modestly in recent years, the number of individual donors and volunteers has steadily declined over the past two decades. We’ve all been watching this trend as fundraisers.

The bottom line: giving, at least as we currently count it, is coming from a progressively smaller group. This trend is a warning sign for our sector. Generosity has always been a democratic, civic activity—not something reserved for elites.

Sure, the bulk of our campaign totals will always come from a small group of high-capacity donors. However, when that base of support erodes, trust in nonprofit institutions will decline further, along with advocacy and engagement. These are two key drivers of mission success.

Fundraisers should be watching these trends and thinking critically about how we can adapt. Here are three big takeaways from the report.

Key Insights from the Generosity Commission Report: Giving is Changing

• A Decline in Formal Giving Participation: Between 2008 and 2016, the percentage of U.S. households giving to nonprofits fell from 65.4% to 53% and further dropped below 50% by 2018. Similarly, the rate of formal volunteering has decreased, with a significant decline during the COVID-19 pandemic.
• Economic and Social Drivers: The report attributes these declines to economic challenges, social isolation, decreased trust in institutions, and changes in religious practices. Economic precarity has limited people's ability to contribute. It may now also be causing hesitancy for major donors.
• Generosity is Changing: Despite the decline in traditional charitable giving, new forms of generosity, such as mutual aid networks, crowdfunding, and impact investing, have grown, especially during the pandemic. These newer modes of giving often operate outside the traditional nonprofit sector and are not being fully counted well in our current methodologies.

It's time for fundraisers to heed the trends and transform

The decline in these activities threatens the resilience of nonprofit organizations, particularly those that are smaller and community-based. The only solution is for us to work together authentically and with a focus on relationships. We need to build connections between nonprofits and work collaboratively with donors.

Today giving is more strategic, social, and impact-driven. That’s not how we’ve traditionally approached fundraising, so it’s time to change how we “ask” donors. We can no longer assume that because our cause is good, we will receive gifts. We must join donors in a community of generosity that meets their meaning and purpose, not just ours.

As the report says, it’s time for a national conversation about the importance of generosity that urges action from policymakers, nonprofit leaders, businesses, and everyday citizens to reverse these trends.

We also need better data on giving, in all forms, and we must emphasize building a culture of generosity, instead of relying on stop gimmicks and click bait. This approach requires listening both to this data and individuals as we engage donors and collaborative giving groups. The benefit of this listening approach is that it provides a real opportunity to make giving more inclusive and purposeful.

Nonprofits should focus on meaning, purpose and engagement to attract today's donors

Remember, fundraisers, it’s not about us. Philanthropy is about the mission, the purpose of donors, and the good they want to do in the world.

It’s time for us to wake up, embrace transparency, and engage donors authentically and purposefully. Transforming fundraising will require systemic change. It will require ethically and beneficially using new technology. Mostly, it will require abandoning “the way we’ve always done it.”

We have an opportunity to seize this moment and transform fundraising. Let’s do it.

If you’d like to chat about how these trends impact your fundraising and donor engagement strategy, feel free to reach out. I’m ready to share examples of how organizations have transformed their approach and leaned into the ways 21st century donors want to be generous. Let’s talk soon.