The number of Americans who volunteer in civic organizations and who give to nonprofits has plummeted in recent years, with as many as 20 million households dropping out of giving between 2010 and 2016.
While fewer donors are actually giving larger amounts — making up the financial gap in many organizations and increasing philanthropy overall — the more concerning trend is the decrease of the “everyday” donor and volunteer.
These “everydayers” are engaged. They are voters and civic leaders with a finger on the pulse of the community and its needs. They give at the workplace, volunteer at the community shelter, attend town halls and are — frankly — the backbone of American civil society.
They also traditionally support smaller human services and grassroots organizations. The loss of generosity from this group becomes even more concerning when considering that 88% of all U.S. nonprofits are small, with budgets of less than $500,000. When these organizations struggle financially or can’t attract volunteers to move their missions and visions forward, the needs of society can go unmet and can lead to civil unrest.
The Generosity Commission was created to study this and other trends in generosity — defined as giving and volunteerism — and to suggest ways of re-engaging the everyday donor and volunteer. Overall, the group proposed nine recommendations, of which the three most relevant and impactful are shared below and at left:
Engage with Corporations
Executives sitting on nonprofit boards can advocate for corporate policy at their workplace that makes it easier for employees to give and volunteer.
At PNC Bank, this spirit of volunteerism and giving back is part of company culture. Not only are employees paid 40 hours of volunteer time for one of the bank’s main support areas — early childhood education — but the bank also seeks ways to partner with the local nonprofits it supports financially: providing financial literacy, encouraging employees to serve on boards or to lead nonprofit committees. PNC also offers an easy-to-use portal matching gift program for its employees.
“We believe in being good stewards and neighbors — and want to make our community a better place for everyone to live, work and thrive,” says Valerie Attisha, vice president of community relations for PNC Bank in San Diego. She describes a recent, regional volunteer opportunity repairing a veteran’s home: “Employees walked away with such a feeling of accomplishment and gratitude, and excitement that they could do this with their colleagues while helping someone in need.”
Partner with Community Foundations
Community foundations focus on specific geographic regions, growing and distributing funds to local nonprofits. That’s why their donors and board members must be representative of their communities. “Educator, attorney, philanthropist, nonprofit and community leader participation is essential,” says President and CEO of Long Beach Community Foundation Marcelle Hope Epley. “It’s the people who are part of a community — representing different socioeconomic backgrounds — that best understand the needs and challenges of the community.”
Such diversity also builds a base for contributions at all levels of the giving pyramid: bottom, middle and top. This is especially important today, where — nationwide — 90% of contributions come from only 10% of donors, with the divide narrowing each year. Fundraising performance should not be based on how much money is raised by only a handful of top donors. Performance should be based on how many donors a nonprofit has and retains, and whether it has enough low-level donors who offer much-needed unrestricted gifts.
CEOs sitting on nonprofit boards who have money invested in a community foundation can impress upon the foundation’s fundraisers and leadership the critical need to diversify donors at various giving levels and board members who truly speak for the community.
Generosity = an Improved Future
A loss of generosity in the nonprofit world is about far more than finances. In a society with rising social isolation and a lack of social trust, it is imperative to re-engage individuals with their communities. It helps them form a sense of connection. It helps society. It helps bolster the altruistic nature upon which our democracy was founded.
[Editor’s Note: A companion article about growing generosity will follow in the April 2026 edition of In Business Magazine.]
Activating Generosity in Youth
Educating youth to become America’s future adult philanthropists is different from engaging them while young. Arden Pala, 16-year-old founder and CEO of San Diego’s Sports4Kids nonprofit knows this well. When he was only 12, he realized that many California schools in low-economic neighborhoods lacked sports programs and wanted to connect peers with the physical and mental health benefits of athletics.
As it turns out, he connected them to volunteerism as well. His nonprofit is run by youth, and his basketball sports clinics that operate in six schools weekly are staffed by Pala, himself, and students coaching other students. “If you aren’t exposed to volunteering when you have more time on your hands, when you’re young, it’s harder to introduce it into your life later,” he says. Pala’s organization has raised $350,000 and introduced 850 students to sports through his clinics.
Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.
Did you know? Research shows that “giving” financially increases the likelihood of joining community groups by 10% and volunteering by 24.4%.
