Giving Trends & What They Mean for Your Nonprofit
You're not imagining it. The fundraising reality feels different lately.
Maybe you've noticed more grant opportunities opening up. Or your year-end appeal performed better than expected.
There's a reason for this shift, and knowing why it's happening and how to make the most of it can help you adjust your nonprofit funding appropriately for the years ahead.
After years of navigating pandemic disruptions and inflationary pressures, charitable giving in 2024 has not only recovered but surged to $592.50 billion. That’s a 6.3% increase and marks the first time in three years that giving growth has outpaced inflation.
For nonprofit leaders looking for more sustainable funding solutions, you can use these trends to make the right moves and strengthen your organization's future.
Why Has Charitable Giving Grown?
Individual donors (those who believe in your mission and want to see you succeed) are still the backbone of charitable giving. They increased their contributions by 8.2% to $392.45 billion last year.
Even more encouraging? This growth represents a 5.1% increase after adjusting for inflation. This means, donor generosity isn't just keeping pace with economic pressures – it's exceeding them!
Corporate giving showed particularly strong growth at 9.1%, reaching $44.40 billion, while foundation giving increased by 2.4% to $109.81 billion.
The only area showing decline is bequest giving, down 1.6%. However, researchers note that this type of fluctuation is typical in estate giving patterns and might not signal anything concerning about long-term planned giving.
So what’s behind the growth? There are many reasons, but the confluence of a strong stock market and increased financial security among donors has created an environment where generosity can flourish.
But perhaps more importantly, these numbers reflect a truth that we see every day in our work: donors remain deeply committed to supporting the missions that matter to them, even when times feel uncertain.
Not All Nonprofits Are Experiencing Growth Equally
While the numbers are promising, it’s always good to stay rooted in reality.
Education, health, arts and culture, and environmental causes have all reached all-time highs, even after inflation adjustments. These sectors are benefiting from increased donor interest in tangible, measurable impact.
If your organization serves in religious giving, you're facing different challenges. This sector was the only subsector to see an inflation-adjusted decline, reflecting broader societal changes.
So, for faith-based organizations, this shows just how important it is to expand beyond traditional congregation-based giving. Many are now looking to engage new donor segments who value community service and social impact programs.
In essence, your mission hasn't become less important. It’s your approach to communicating your mission that may need to evolve.
What to Expect in 2025 and Beyond
The outlook for 2025 remains decidedly positive, with giving expected to rise above historical 10-, 25-, and even 40-year average growth rates.
Projections indicate a 4.2% inflation-adjusted growth for 2024 and 3.9% for 2025, driven primarily by increases in personal income across all household types.
This broad-based income growth is particularly exciting because it suggests that fundraising opportunities will extend beyond traditional major donors to include expanded middle-income giving.
For instance, if you've been considering strengthening your planned giving programs or foundation relationships, now is the time.
While corporate giving will continue to grow, it's projected to do so at a slower pace than historic averages – so diversifying your funding strategies is important.
What Opportunities are Hidden in These Trends?
Consider Diversifying Your Asset Acceptance
One of the most underutilized opportunities in nonprofit fundraising is accepting non-cash assets.
While more organizations are beginning to receive donations of stocks, real estate, and other assets, many nonprofits still don't actively solicit these gifts.
Given the strong stock market performance driving current giving trends, organizations that can accept and promote non-cash giving options position themselves to capture a larger share of donor generosity.
Maintain Your Strong Donor Relationships
The resilience shown in 2024 giving also shows that donor generosity is relationship-driven.
Organizations that focus on building long-term donor relationships through consistent communication and meaningful engagement seem to be better positioned to weather future economic uncertainties.
This means finding ways to move beyond transactional fundraising to create genuine partnerships with your supporters.
Use Data To Your Advantage
Naturally, as federal funding shifts and policy changes create greater uncertainty, you need to stay ahead of the curve.
Don’t just track donation amounts, but also understand donor motivations. What are their current giving patterns? How do they prefer to be engaged by your organization?
Track and leverage data to personalize their fundraising approaches. Showing that you are adapting and aligning with your core donor base shows that you are aware of their priorities and are actively working to address them.
Preparing for the Future While Capitalizing on Today
Current giving trends are strong. But successful nonprofits are already preparing for generational shifts in donor demographics.
Consider how younger donors are already showing different engagement preferences. Many favor engagement via digital platforms and greater social impact through tangible hands-on involvement.
You can begin adapting your fundraising strategies now to appeal to these emerging donor segments while maintaining your traditional supporter base.
This is where strategic grants management becomes key. With foundation giving expected to outperform other sources in 2025, organizations with strong grant programs will be well-positioned to capitalize on these opportunities.
But success here requires more than just good grant writing. You’ll need to develop a more consistent strategy for how you handle prospect research, relationship building, and program management.
What You Should Do Right Now To Prepare
The data is clear: donors want to give, and they're demonstrating this through their continued generosity.
So, is your nonprofit positioned to engage effectively with donors this year and beyond? The window of opportunity is open, but it won't stay that way forever.
Here are some steps you should take to position your organization for success:
Audit your asset acceptance capabilities - Can you accept stock gifts, real estate, or other non-cash donations? If not, research how to enable these options quickly.
Review your foundation prospect list - With foundation giving expected to outperform in 2025, ensure you're targeting the right funders with strategic timing.
Strengthen your grants infrastructure - Organize your grant materials, create systems for tracking deadlines, and establish clear processes for team collaboration.
Diversify your funding streams - Don't rely too heavily on any single source; build multiple pathways to sustainable funding.
Invest in donor relationship building - Move beyond transactional approaches to create genuine partnerships with your supporters.
The organizations that use this period of growth to strengthen their fundraising foundations will be those best positioned to achieve their missions for years to come. So don’t wait for a downturn to start changing how you manage your grants and giving. Use this time of prosperity to invest in the long-term sustainability of your organization.
Ready to capitalize on these giving trends and build a stronger grants program? We'd love to help you create the systems and strategies needed to secure sustainable funding.
Contact us today to learn more about strategic grant management and more topics for nonprofits to thrive in 2025 and beyond!
