Earlier this summer, Giving USA released its annual report on giving trends in the United States, highlighting data from 2023.
While we’re in the thick of 2024, it may be hard to recall notable moments from 2023. Last year, many entered the year gearing up for a recession. As it turns out, the economy performed better than anticipated, but inflation remained stubbornly high. MacKenzie Scott donated over $2.1 billion to 360 nonprofits. All the while, the world continued to adjust to post-COVID-19 life.
How did this impact philanthropy?
Recent headlines will point to a 2.1% decrease in giving in 2023, but Dr. Una Osili from the Lilly Family School of Philanthropy offers a different perspective. At a recent convening in Kansas City geared for nonprofit and philanthropy professionals, Dr. Osili reiterated the resiliency of philanthropy in the U.S. and ensured that people in the U.S. trust the philanthropy sector more than any other sector.
How do we know this? Dr. Osili highlighted the positives over the last few years:
- Private foundations have grown philosophically in how they give by leaning into the power of proximity with their grantees to create more trusting relationships. This was often done by embracing unrestricted grants and centering the needs of the nonprofits, rather than the desires of the private foundation trustees.
- Corporate giving has evolved to be more adaptive to the corporate philanthropy climate. Companies now tend to focus on matching gifts for employees, sponsorships and cause marketing.
- High-net-worth donors have increased their giving by 40%. Individuals and families in the largest income brackets are prioritizing philanthropy.
- Nonprofit organizations have shown their resiliency. Nonprofit organizations were up for a difficult task when navigating through the pandemic, oftentimes with limited resources. The nonprofits that had the resources to adapt during the pandemic experienced the most growth.
How philanthropy can take action
As the world moves forward, Dr. Osili offered a few considerations:
- Continue to build trust with the nonprofits you support. The pandemic showed us the critical work that many nonprofits do to create healthy, resilient and vibrant communities. They need funding to keep going.
- As you work with your wealth advisor and estate planning attorney, think about a bequest. The biggest cohort of philanthropists in the U.S. are the oldest generations, who are planning for wealth transfers. By earmarking contributions to nonprofit organizations, your legacy of giving can continue.
- Spark conversations about charitable giving with your loved ones. While younger generations may learn a lot about philanthropy by watching older generations, intentional conversation is also necessary to instill the generosity mindset.
- Connect with others through the inherent desire to give. Dr. Osili reminded us all that the backbone of our nation is our willingness to help one another. When we share our time and money generously, we can make more meaningful connections, even across differences.
If you’re interested in exploring how a donor-advised fund can help you lean into your generosity mindset, let us know. Once you’ve established your donor-advised fund, our team of philanthropic advisors is here to help you plan for the future impact of your philanthropy.
Authored by: Sidney Peterson, Director of Communications and Events