Takeaways from the 2024 Giving USA Report

Each summer, fundraisers across the nation anxiously await the Giving USA report, a report on the state of fundraising and philanthropy across the United States.

First of all, let’s talk about top-level highlights from the report:

1. Individual giving’s share of philanthropy increased from 2022 to 2023. This year, individuals (including bequests) were responsible for 75% of all philanthropic giving compared to 73% in 2022.
2. Overall, foundation giving declined from 21% to 19%. In 2022, foundations made up 21% of all philanthropic giving. But with changing funder priorities, moves to invite-only processes, and economic turbulence, foundation giving proves to be more volatile than individual giving.
3. While foundation and corporate giving has increased over the last four decades, individual giving strategies are still the key to progress. While tax policy since the 1980s has helped incentivize the impact of foundations, it’s important to remember that foundations are made up of individual people and families with their own unique philanthropic priorities!

Individual Giving
Giving by Percentage versus Giving in Dollars
When we talk about individual giving in the Giving USA report, there’s an important distinction to make: are we talking about the proportion of the pie that individuals make up? Or are we talking about the total dollars given by individuals?

This nuance matters because while we see a 1.6% increase in individual giving overall, the total dollars (adjusted for inflation) actually shows a slight decrease in giving. According to the Giving USA report, current dollars given by individuals declined by 2.4% from 2022 to 2023.

Many of your organizations may have seen a similar decrease in individual revenue over the last year. While COVID-19 elicited revenue bumps similar to those experienced during emergencies or natural disasters, rising costs of living and overall inflation have impacted individual philanthropy.

Foundation Giving
Why has foundation giving decreased?
Trends in foundation giving mirror those of individual giving. While foundation giving represents an increasingly larger portion of giving, it has declined by 2.4% when adjusted for inflation. Additionally, we’ve seen a number of foundations in Minnesota begin to review their grantmaking processes, rethink their funding priorities, and generally take a moment to reset post-pandemic.

If you’re feeling the effects of these changes, our team recommends you approach your funder relationships with curiosity and a human-first lens. It’s okay to ask questions about foundations’ grant-making processes, discuss recommendations with your institutional program officer, and ask for feedback on your proposal.

Why Individual Giving Strategies are Important
Why has the number of foundations increased over the last few decades?
When we take a look at Giving USA’s data, one important thing to note is that the number of foundations has grown significantly since the 1980s.

So, does that mean that the number of individuals giving to nonprofits and schools has shrunk? Not exactly.

The Tax Reform Act of 1986 has significantly impacted foundations – in particular, family foundations. It also created more advantageous conditions for individuals to include charitable donations while making their estate plans, including the use of family foundations.

Behind every foundation is a group of people who have their own motivations for and experiences in giving. While formalized foundations have increased with time, the reasons why people give – to create stronger communities, fulfill personal values, and help others – continues to stand the test of time.

Focusing on your strategies of authentic storytelling, building genuine relationships with community, and helping people understand how they can enact their values through support of your mission will be critical as our sector moves forward.

_________________

Want some assistance decoding your organization’s fundraising data? Reach out to our fundraising coaches! Our expert coaches are here to help you better understand your data, setting goals that are right-sized for your cause, and leverage industry trends through values-aligned strategies.