Fundraising Update: Bad News, Good News

It used to be part of my fundraising trainings to say that 70% of Americans make charitable donations. Which meant not only that on average 7 out of the 10 people they knew were willing to support nonprofits, but also that it isn’t just rich folks who are philanthropic.

Here’s the bad news:

• The percentage of households that give has now dropped to 56%. This decline encompassed both secular and religious sectors; much it was first driven by the 2008 recession, then by general anxiety and caution as times have improved. 
• There’s been a serious decline over the past 10 years in how many small and medium donors give and how much they give. This decline has occurred in every age group and at every level of education, though the biggest drop has been among people 51 to 60 years old, an age bracket that is typically more willing to make charitable gifts.
• Total giving is actually at record levels – but gifts at the high end are driving this growth, fueled by a booming stock market. A Blackbaud analysis found that 1% of households accounted for 49% of contributions in 2015. 
• That means more nonprofits are increasingly dependent on significant donations from the wealthy. And multi-millionaires often get to drive the focus of giving. 
• Pundits are predicting things will get even worse, given that many middle income folks will likely not itemize due to the so-called tax reform.

Here's me looking at the bright side, with some trends and tips it’s worth thinking about:

• It's less than before, but 6 out of 10 people still make charitable gifts – and that’s a lot of potential donors.
• I’m guessing most of you never got and don’t expect to get multi-million dollar donations from the 1% anyway.
• Online giving increased 32% last year – so you should include an online option in all your fundraising pitches, make your donate button prominent on your website and emails, and be sure the process of making an online donation works smoothly (i.e. – try it yourself).
• Millions of dollars will pass from one generation to the next in the coming decade – so get a robust planned giving strategy in place now.
• Organizations with deep roots in their communities are better positioned to sustain donors, because of strong personal connections – what you do is tangible, and that’s important. So be sure to nurture those relationships in every way you can.
• I've never believed that getting a tax donation is what motivates most ordinary folks to support worthy causes; perhaps it’s my rose-colored glasses, but I think folks give because they care. Your job is to communicate what you do and make them care about your work.

And remember - the main reason people give is because they got asked. So ask; ask more often; ask with conviction and a compelling message. Because if you don't ask, they won't give.