As a proud Texan, I want to start by saying thank you. So many of you reached out after the devastating floods in Central Texas last week – and your care, along with the generous outpouring of support for those impacted, reminded me of one of America’s best qualities: we show up for one another. Whether in times of crisis or through everyday giving, philanthropy continues to be a defining part of who we are.
That generosity isn’t just something we talk about – it’s reflected in how we give, serve and support one another every day.
So, it feels fitting that, just as our communities rally in times of need, the broader story of charitable giving in the U.S. also shows signs of renewed strength and hope. Late last month, Giving USA produced its annual report and, as always, we wanted to share our insights and actionable thoughts. In this edition, we’ve also included valuable findings from two of our favorite sources: the Nonprofit Finance Fund’s 2025 State of the Nonprofit Sector Survey and the 2025 Edelman Trust Barometer – both of which paint a broader picture of where philanthropy is thriving and where it’s under pressure.
Trend #1: Charitable Giving Rebounded in 2024
Americans gave $592.5 billion in 2024, according to Giving USA. That’s a 6.2% increase (3.3% after adjusting for inflation). That makes it the second-highest total on record, signaling renewed donor confidence fueled by a booming stock market and strong GDP growth.
This is significant, especially since every four years, we hear the same concern whispered across boardrooms and nonprofit gatherings: “It’s a presidential election year. Will people still give?” But while election cycles can shift attention and news cycles, history shows that charitable giving remains resilient – even in politically charged years.
Trend #2: Fewer Donors, Bigger Checks
Giving rose across most sources:
- Individuals: $374.4B (63% of all giving) – While the total amount increased, individual giving continues to decline as a share of overall giving.
- Foundations: $105.2B – Relatively flat after adjusting for inflation.
- Corporations: $45.6B – A record driven by strong corporate profits.
- Bequests: $43.6B – Decreased by 4.4% in real terms.
While giving is up, the donor base continues to narrow. Mega-donors and donor-advised funds (DAFs) now drive a growing percentage of individual giving. In fact, nearly $12 billion came from gifts of $450 million or more. The bottom line? Fewer donors are contributing more dollars.
Trend #3: Shifting Priorities in Giving
Seven of the nine major cause areas saw real growth – see our graphic below for your issue area:
However, with inflation at 3.7% in 2024, some sectors that saw increases in current (nominal) dollars actually declined slightly in real terms. These include education, arts and culture, health, and human services—highlighting that even flat or modest growth may not be keeping pace with rising costs, potentially stretching organizations to do more with less. This shift reflects growing donor interest in social issues, global challenges and measurable impact – particularly among younger generations.Only religion saw a decline, falling 1% after inflation.
Trend #4: Nonprofits Feel the Strain
While giving rebounded, challenges for nonprofits remain serious:
- Skyrocketing demand for services – with estimates increasing for 2025
- Declining government support at all levels of government
- Increasing costs due to inflation
This strain has led to layoffs, cost-cutting measures and an uptick in mergers and acquisitions.
In fact, the recent report from Nonprofit Finance Fund found:
- 76% of nonprofit respondents saw increased demand.
- Nearly 50% lack adequate financial reserves of at least 3 months of cash on hand.
- 59% of nonprofit respondents report not being able to pay some of their full-time staff a living wage.
The 2025 Edelman Trust Barometer adds another layer, which we have discussed in past blogs: trust in nonprofits declined 3 percentage points globally, with concerns around transparency, impact and mission alignment.
Trend #5: One-Size-Fits-All Fundraising Is Out
Taken together, these reports showcase that it is time to move beyond broad, blanket campaigns. Today’s donors – across Baby Boomers, Gen X, Millennials and Gen Z – each give for different reasons. Generic messaging just doesn’t cut it anymore.
We recommend tailored outreach, and generational strategies matter more than ever. Whether it’s legacy-driven Boomers, impact-seeking Gen Xers, meaning-motivated Millennials or change-focused Gen Z, successful fundraising in 2025 requires personalization.
(Check out our generational giving graphic below for more insights and read more about generational differences in our 2025 Trends post.)
What Nonprofits Should Do Now
So, what does all this mean for nonprofits like yours? We’ve been in conversation with changemakers across the country – most recently with our friends at Make-A-Wish – and here are five smart moves we’re encouraging:
1. Segment your donors – and personalize your approach. Donors over 40 are different than donors under 40 in motivation, style and preferences. With AI at your disposal, it is easier than ever to personalize and track your approach. Know who your donors are – and what matters to them.
2. Track giving vehicles – especially Donor Advised Funds (DAFs) and employer giving. DAFs (Donor-Advised Funds) continue to be the fastest-growing vehicle in philanthropy. Many high-capacity donors are giving differently. A recent report found that DAF donors not only give more per year on average but also remain more loyal – supporting multiple causes and sustaining long-term commitments. As more donors consolidate giving into these flexible accounts, nonprofits must refine their strategies to cultivate and steward DAF holders directly. Similarly, employer-matching gift programs provide a low-barrier entry point for newer and younger donors – and are often overlooked by nonprofits. With more companies adopting employee-directed giving models, including match programs and workplace giving campaigns, engaging this channel is more important than ever. In fact, according to Double the Donation, an estimated $4–7 billion in matching gifts goes unclaimed each year – representing a major opportunity for proactive nonprofits.
3. Focus on deeper relationships, not just more touches. Bombarding donors with emails or calendar invites today doesn’t build trust tomorrow. What moves the needle is meaningful connection: speaking to their values, expressing impact, asking for input and following up with gratitude. Think handwritten thank-you notes, customized impact check-ins, behind-the-scenes updates from a project they funded, and invitations to webinars or community forums. These engagements communicate, “You’re more than just a donor – you’re a partner.”
4. Diversify income streams – now, not later. When the pandemic hit, organizations with diverse revenue – including grants, earned income, membership fees and events – had greater stability. As federal funding fluctuates and individual giving becomes more concentrated, this holds true more than ever. Diversification isn’t about chasing every opportunity. It’s about strategically layering multiple streams that align with your mission. Think capacity-building grants, fee-for-service social enterprises, shared services or unrestricted gifts.
5. Invest in trust-building – transparency, feedback and impact storytelling. With a decline in nonprofit trust, restoring it means modeling clarity and accountability at every turn:
- Transparency: Share budget breakdowns, governance policies and program effectiveness – on your website and in donor communications.
- Feedback loops: Conduct donor and stakeholder surveys. Ask what they care about and then close the loop: “We heard …” + “Here’s what we’re doing.”
- Impact storytelling: Use names, quotes and numbers. Move past outputs (“We served 300 meals”) to outcomes (“300 people were able to eat today because of you.”). Mix formats: short videos, photo stories and dashboards.
Final Thoughts
If 2023 was about recalibration, and 2024 was about recovery, then 2025 is the year of reinvention. Donors are still giving – but they’re asking harder questions. Resources are flowing – but not equally. Trust is still there – but it must be earned and protected.
As someone who just witnessed the power of generosity firsthand in Central Texas, I know this: people want to help – they just need to know how and why it matters. That’s our role as nonprofit leaders. To connect the dots between need and impact. To build relationships, not just donor pipelines. And to lead with purpose, transparency and humility.
We don’t need to wait for the end of the year to adjust. The second half of 2025 is still ahead – and we have time to shift, deepen and strengthen the way we show up for those we serve. If you have shifted your fundraising strategy and seen results, we’d love for you to share your lessons learned. We are all in this together!
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