What are the key takeaways of Giving USA 2023?
According to Giving USA 2023, charitable giving in this country totaled $499.33 billion in 2022. Impacted by economic challenges, this is a 3.4% decrease in current dollars year-over-year; however, it comes after two record years of giving.
Where Did the Generosity Come From?
Contributions by Source
- Giving by foundations, bequests, and corporations grew in current dollars
- All four sources of giving declined when adjusted for inflation
- Individual giving as a percentage of the whole is shrinking, but it is still the lion’s share of contributions
- Giving by foundations reached record share of total giving at 21% (compared to 5% of total in 1982)
Where Did the Charitable Dollars Go?
Contributions by Nonprofit Recipient
The Headlines for Nonprofit Sectors
- Giving to religion, health, and arts, culture & humanities organizations grew in current dollars, but declined when adjusted for inflation
- The war in Ukraine and political issues drove significant giving and engaged next-gen giving to social issues
Our Key Takeaways
Individual Giving Shapes Philanthropy
- Major donors continue to drive giving
- Retention is key – It is much more expensive to acquire a donor
- Donors continue to use giving vehicles to make their donations (donor-advised funds, qualified charitable distributions (QCD) and cryptocurrency). The number of DAFs has grown 300% since 2008
Role of Technology in Giving Grows
- Mobile devices now responsible for majority of visits to nonprofit websites
- Tools such as ChatGPT offer new possibilities for nonprofits, fundraisers and donors
- Donors continue to recognize virtual meetings as part of the fundraising process
Institutional Funders Increase Impact
- Even as foundation assets declined, foundation giving as percentage of assets increased
- Close to half of all foundation giving is from private family foundations
- Forty years ago there were 28,468 foundations, now there are over 107,000
The number one takeaway is that relationships matter at every level. Strengthen your case for support and share your vision with your individual, foundation and corporate donors. Invest in technology, staff and volunteers that will enable you to build relationships, steward your donors and expand your pool of prospects.