Showing posts with label Lilly School of Philanthropy. Show all posts
Showing posts with label Lilly School of Philanthropy. Show all posts

November 01, 2025

The Act of Giving

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"No one is useless in this world who lightens the burdens of another."

—Charles Dickens 

The results are in from Giving USA's 2025 report (for calendar year 2024) with a record $592.50 billion in charitable giving, a 6.9% increase in current dollars, and a 4.2% increase when adjusted for inflation. 

This is the first time in three years that total giving has outpaced inflation. 

Generosity —giving to others freely and abundantly —is alive and well, as donors continue to give of themselves and their financial resources to causes they care about.

Sources of giving

Giving by individuals was 66% or $392.45 billion (↑ 8.2%), foundations gave 19% or $109.81 billion (↑ 2.4%), bequests yielded 8% or $45.84 billion (↓ 1.6%), and corporations were at 7% or $44.40 billion (↑ 9.1%).  

The top five destinations for those charitable dollars were Religion at $146.54 billion (↑ 1.9%), Human Services at $91.15 billion (↑ 5.0%), Education, $88.32 billion (↑ 13.2%), Foundations, $71.02 billion (↑ 3.5%), and Public-Society Benefit at $66.84 billion (↑ 19.5%).  

Faith and finances 

The Lake Institute found that in 2024, religion continued to generate the most giving, but was the only sector to see a decline. 

"While religious organizations continue to receive the most giving across subsectors*, the proportion of giving directed toward religion has continued to gradually decline," the report stated.  

Fewer congregants may explain a reduction in giving. Gallup reports that Americans are less likely to identify as members of a church, declining from 70% in 1999 to 45% in 2023. That translates into a 25% decrease in 24 years. The highest membership rate reported in survey research was 73% in 1937, indicating that the steepest declines are more recent.

What about an exodus of older members from church? In 2000, approximately 60% of Americans aged 65 and older regularly attended church services. By 2000, that figure had dropped to 45%. That's a 15-point decrease in just one generation.

Financially, older adults are pillars of strength. The Evangelical Council for Financial Accountability (ECFA) notes that adults over 65 account for approximately 40% of all donations to U.S. churches. Their departure is felt throughout a faith community, but especially in the giving of tithes and offerings, which many consider an act of worship.

No one should rely on remote attendance to make up for any differences in giving, as about two-thirds of Americans have little to no interaction with online worship. Pew Research shows that only 14% say they participate online weekly—roughly half the rate of those who attend in person weekly. 

A Mortar/Stone survey of churches found that median household giving declined from $910 in 2021 to $600 in 2024. However, the median increased by 47% in the same period among the top 1% of givers. 

Surveys from Finances and Faith and EPIC report that while median church income increased from $150,000 to $165,000 since 2010, revenue would need to reach $209,603 to keep pace with inflation. 

The difference is frequency

A hopeful sign comes from the Giving USA Foundation's Giving by Generation Report, which found that Millennial giving per household, which increased 22% in 2024, has surpassed that of Gen X. 

Millennials report attending religious services more frequently than Gen X. That regular attendance aligns with an earlier finding from the Lake Institute, suggesting that a person's frequency of in-person worship is the single biggest indicator of overall charitable giving. 

Worship service attendance and generosity are correlated worldwide, not just in the U.S., based on Gallup surveys conducted in 145 countries from 2005 to 2009. 

Religion — primarily churches — remains the largest recipient of overall giving, and religious giving continues to be a philanthropic priority for many individuals in the U.S., according to Giving USA.

Philanthropy is resilient 

Consider these insights and trends from the Nonprofit Leadership Center, Lilly Family School of Philanthropy, Nonprofit Quarterly, and consulting firm, BWF:

o Strong donor relationships and clear communication of impact remain essential. Reaffirm the case for support. Be bold and specific about why your mission matters at this time. 

o Economic conditions make a big difference. Giving is linked to Gross Domestic Product (GDP), consumer confidence, stock market performance, tax policy, and donor trust. Now is the time to double down on transparency, governance, and impact reporting.

o Diversify funding streams. No one source. Prevent the organization from becoming vulnerable. 

o Expansion and promotion of online giving corresponds with a higher level of giving on digital platforms. 

o Charitable giving is higher, but the number of donors continues to decrease. Fewer donors are giving more money. Donor attrition and lower retention rates erode the future pipeline. AI is providing tools for retention and for identifying major gift prospects, but staff must know how to use them effectively. 

o More households are not creating wills. The numbers have dropped from 24% in the 2025 report compared to 33% in the 2022 report. More than half have no estate planning at all. The wealthy are increasingly turning away from wills and toward trusts and other sophisticated estate planning vehicles. 

o The two markets are baby boomers and younger generations. Donor-advised funds (DAFs),  qualified charitable distributions (QCDs), and required minimum distributions (RMDs) are means to a successful fundraising end with those demographic cohorts. 

An intelligent relationship

"The single biggest mistake people make in fundraising is not asking for money," says Stephanie Roth, a principal of Klein & Roth Consulting. "The next biggest mistake people make is the failure to understand that building a base of loyal donors involves much more than asking for money."

Discerning where people are in their relationship with a nonprofit is a good place to start. Donors support charities that can effect the change they seek in the world. Therefore, the importance of knowing in advance whether there's a values match between the parties cannot be overstated. 

The question is, how to create that kind of relationship?

Ms. Roth answers that "Like any other relationship, donors require some attention, some thought, and some common sense to help make that relationship as strong and meaningful as possible." 


*Churches, denominations, religious media, and missionary societies.


Strategist.com

© Bredholt & Co.


November 01, 2020

The State of Charitable Giving

 "If you can't feed a hundred people, then just feed one."

--Mother Teresa

In 2019, American individuals, bequests, foundations, and corporations gave an estimated $450 billion to various religious and charitable causes. According to Giving USA, the giving level ranks among the highest years ever for philanthropic contributions.  

The 4.2% increase in donations (2.4% adjusted for inflation) over 2018's $431 billion, measured in current dollars, makes the 2019 report the highest dollar total to date.

"In 2019, the growth in total giving was driven by an increase in giving by individuals, which remains by far the biggest source of giving," said Amir Pasic, Ph.D., and the Eugene R. Tempel Dean of the Lilly Family School of Philanthropy.  

Una Osili, Ph.D., associate dean, summed it up this way, "We saw solid, broad-based growth in almost all aspects of charitable giving, and especially in giving by individuals due to a substantial increase in the S&P 500 and personal income.

"While giving trends vary by donors' income and wealth, since the Great Recession, we have seen giving become more concentrated toward the top end of the income and wealth spectrum," Dr. Osili added.

Where did the money come from?

  • Individuals--69% or $309 billion.
  • Foundations--17% or $75 billion.
  • Bequests--10% or $43 billion.
  • Corporations--5% or $21 billion.

Where did the money go?

The top five recipients of charitable gifts in 2019--

1. Religion:  $128 billion.

2. Education:  $64 billion.

3. Human Services:  $55 billion.

4. Foundations:  $53 billion.

5. Health:  $41 billion.

The power of generosity

The 2019 report highlights the practices of generous givers who believe in a worthy cause and support it with their time and contributions.  

Research from the University of California, Davis, confirms that generosity begets generosity. It spreads and transfers even with several degrees of separation. Individuals who are affected by your generosity will likely be inclined to be generous toward others for a significant period.

Additionally, scientific evidence suggests that generous people often experience gratitude as a lasting state of being. People who remain mindfully thankful, rather than choose it as a temporary state of mind, have been proven to engage in healthier behaviors, have a more robust immune system, are more able to relax, and have decreased disease rates. (Harvard School of Health; Midland Health)

Emerging patterns

Pre-Covid 

o Giving is increasing because of large gifts from wealthy donors through private foundations and donor-advised funds. Unfortunately, as a result, smaller and mid-level donors are slowly disappearing across the broad range of all organizations. That's unfortunate, as the loss of middle-class philanthropy would be devastating to smaller charities.  

o In recent years, the number of donors declined by 4.5% and donations under $250 by 4.4%, while donations between $250 and $1,000 also dropped. On the other hand, charitable revenues for grants of at least $1,000 increased by 2.6%. Currently, total philanthropic giving accounts for approximately 2% of the U.S. Gross Domestic Product (GDP), a figure that has remained relatively stable since 1984.  

o A person's attendance at a house of worship is the best indicator of overall charitable giving. Those who frequently attend worship (three to four times per month, at least) are at a minimum three times more generous than those who attend less frequently or not at all. (The Lake Institute)

o People who stop itemizing won't necessarily stop giving. However, at the margins, economists expect tax code changes to reduce donations from where they would otherwise be or to alter where and how they are contributed.

Post-Covid 

o More than half of charitable organizations in the U.S. expect to raise less money in 2020 than in 2019, and an equal percentage believe the same for 2021. However, 3 out of 10 human services charities said they expected to raise more funds in 2020 than in 2019. (Association of Fundraising Professionals)

o The challenge confronting all fundraisers during COVID-19 is being unable to meet face-to-face with donors and prospects.  

"It's much easier for our frontline people to have a Zoom call with someone they know really well than it is to qualify a new prospect for fundraising purposes," noted Steven Bayer, associate vice president for university development at Duke. However, Bayer said that maintaining contact with loyal donors and attracting new ones are the basics that cannot be neglected.

What principles transcend time?

It's essential to continually revisit the motivations for giving. Why do people give?

Here are three reasons offered by Clif Christopher, founder and president of Horizons Stewardship Co--

1. A belief in the mission. People want to be part of something that changes lives. Nonprofits and churches have only one thing to sell — changed lives. The best way to raise money is to simply do your job — and communicate the results.  

2. Regard for staff leadership. The donor's regard for those who lead the organization ranks high on most donor surveys. When they have confidence in those individuals to perform, the gifts follow. When they don't, the donations go elsewhere.

3. Financial stability of the institution. People don't give to sinking ships. Instead, they donate to ships that are sailing strongly and appear to be on track to reach their destination. More than ever, they are holding nonprofits accountable for the prudent use of funds and seeking solid performance with the funds already allocated. 

First things

"There is one general rule that is the most important for charitable organizations, nonprofits, and colleges to follow--don't stop fundraising," says Mike Geiger, CEO of AFP. "Those that continue to raise funds--even increase their fundraising--will do the best," Geiger emphasized.

Studies show that stewardship is the best step forward toward receiving the next gift. So, don't abandon ethics; express appreciation for every donation, regardless of its size. 

Donors want to hear from the organizations they trust.  

Do donors hear from you?



Sources:  Charitable giving and distribution totals for 2019 are from Giving USA. 

Additional information comes from Candid, Donor Trends, and NonProfit Sources.


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© Bredholt & Co.