The slower pace of summer for schools and churches is almost over. It’s time for pastors and other non-profit leaders to get back in the trenches for fundraising, giving campaigns, and creating a culture of generosity among donors and givers.
But how you approach those tasks this year may need to be different than how you approached them last year. And certainly much different from how you did it five or 10 years ago. The key to knowing the right approach to take starts with understanding the trends we’re currently seeing with giving. The Giving USA 2024 report is a good place to start.
Overall, it shows a picture of a challenging fundraising environment with new trends emerging and changes in giving for various sectors that are related to the economy, inflation, changing priorities, and new generations.
So, how does this impact your church or nonprofit’s strategies? Let’s go through some key findings, look at what they mean, and talk about how you can respond.
1. Americans gave $557.16B to charity in 2023.
This number represents a 1.9% increase over 2022. However, when adjusted for inflation, total giving declined by 2.1%.
Now, $557.16 billion is an amazing number. Let’s be clear about that. This is a giving high in current dollars. However, since total giving did not outpace inflation, total giving has yet to top the all-time high of 2021.
2. Giving by individuals continues to be the overwhelming source of generosity at 67% ($374.4B).
However, it is shrinking as a percentage of total giving, which again, reflects uncertain economic times and inflation.
● 2023: 67%
● 1983: 82%
Giving by foundations (19%) and corporations (7%) has increased as an overall percentage of giving.
Remember that individuals can give through foundations and bequests, so this trend isn’t as stark as it appears. But foundations and corporations are playing a more significant role in giving for a couple of possible reasons:
The returns on invested portfolios that a foundation manages have been so strong given the overall positive performance of the equity markets.
Corporate earnings have been especially robust, thus giving more margin for companies to be philanthropic.
Don’t miss NEXT SUNDAY PODCAST
54% of Christians report reading the Bible less than once a month, if at all.
This week, Jim and Frank discuss how to approach and interpret the Bible, especially when understanding finances, giving, and generosity. It should be more than just finding convenient answers to our own preconceived ideas. By looking at biblical principles, we aim to inspire more meaningful engagement with scripture and, through that, a deeper relationship with God.
3. Religion continues to have the most market share of giving.
Giving to religion was 24% ($145.81B), which is the highest percentage of the nine categories Giving USA tracks. However, it is the only sector where donation levels were lower in 2023 than in 2019 (i.e. prior to the pandemic), when adjusted for inflation.
4. Giving to religion is in decline.
Giving to religion peaked in 2016 and has declined for five of the last seven years. Moreover, and arguably more troubling, giving to religious organizations has declined as a share of total giving since the five-year period beginning in 1984 where it represented 57%. In the last five years (2019-2023), it comprised only 26%. This is a decline of more than 54% in market share in the last 40 years.
Why are we seeing this decline? There could be five possible reasons:
Fewer Americans are identifying as religious.
Fewer Americans are going to religious services.
Giving by individuals is shrinking as a percentage of overall giving (see #2), and the overwhelming majority of giving to religious causes is by individuals.
The idea of “dollars up, donors down,” which translates to more being given by fewer people.
An increase of competition as the number of 501(c)3 organizations has grown 3.2% per year over the last decade. In 2012, there were 1.08 million, and in 2022 that number was up to 1.48 million.
And last, but probably most importantly, there is a lack of emphasis on teaching discipleship in stewardship and giving. For the Christ follower, giving is an act of worship and obedience, not simply a means to fund local church ministry.
In 2011, the top 100,000 AGI (adjusted gross income) individuals and families gave about 10% of all total giving to religion. In 2021, they gave 20%. Wealthy donors tend to give a smaller share of their total giving to religion when compared to everyday, middle-income donors. If those middle-income donors are decreasing in number, then it makes sense that giving to religion would decrease as well.
These trends matter for fundraising as a religious nonprofit. So, what can you do about it?
As a pastor in a position to lead your church and cultivate generosity, you must respond to these trends. There’s no “one-size-fits-all” answer, but these are some strategies to consider:
● Encourage donors and givers to contribute ongoing monthly gifts instead of giving just once or sporadically. This can help stabilize fluctuations in giving due to the inflation factor. Make sure you are providing a clear monthly giving option online.
● Share stories of impact that come from regular, monthly giving. Millennials and Gen Z are known for their desire to positively impact the world. They may be giving to things related to religion and faith, such as funds for fresh water wells in India, but not giving to the church. If they know the church is involved in projects such as fresh water wells in other countries, they may be more likely to give to the church directly.
● Continue focusing on individual giving, especially at the major gift level. Large gifts from individuals remain an impactful form of giving to help you reach ministry funding goals.
● Foster trust, safety, and security in giving. Make sure people are confident about where their money is going and what it’s being used for. This is especially important to younger donors right now.
● Provide multiple ways to give in order to appeal to givers of all generations. Most people these days are comfortable with technology, and they are looking for convenience. If they have multiple options for giving (writing a check, online, text-to-give, mobile apps), it makes giving more accessible, convenient, and user-friendly for all.
● For churches, make giving part of worship with a giving moment every week to develop the transformational, spiritual aspect of giving. Make sure your people understand that giving is more than just a transaction. It’s not for the church budget, but because of our great need to give in response to what God has done for us.
● Recognize first time givers, thank people for unusual gift amounts and celebrate them, and thank faithful givers. These small, often overlooked things make a big difference.
In light of these emerging trends and challenges in the giving landscape, it is crucial for pastors and non-profit leaders to adapt their strategies to foster a sustainable culture of generosity. By understanding and responding to the shifts highlighted in the Giving USA 2024 report, leaders can better navigate the complex environment of charitable giving. Emphasizing consistent monthly contributions, sharing impactful stories, and building trust with donors are key actions to ensure continued support. Tailoring approaches to appeal to all generations and integrating giving into worship can further strengthen donor engagement. As we move forward, a proactive and informed approach will be essential not only to maintain but also grow the generosity that supports vital missions and ministries.
I hope this is helpful. As always, I'm available to discuss any of this in more detail if you are interested. Shoot me an email at jim@generis.com.
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