The latest numbers from Giving USA 2024 indicate Americans gave a generous $592.50 billion to charity in 2024, an increase of 6%, which is double the 40-year average.
The report, which measures the previous year’s philanthropic performance, is positive, indicating increases in giving by individuals (8.2%), foundations (2.4%) and corporations (9.1%). Likewise, the top designations for charities — religion; human services; education; foundations; public-society benefit; health, international affairs; arts, culture, and humanities; and environment and animals — all increased.
The nonprofit landscape, however, has shifted dramatically since Jan. 20, 2025 — Inauguration Day — with many nonprofit leaders unsure of how to react to the new administration’s cuts to federal spending, government departments and programs.
The nonprofit sector is turning to philanthropy to help fill widening gaps, but fundraising alone cannot cover the full shortfall. Still, a few trends gleaned from the Giving USA report — if they continue as they have since COVID — may help corporate executives sitting on nonprofit boards optimize their organizations’ levels of philanthropic support. Understanding these trends may also allay fears about tomorrow’s unknowns.
What the Numbers Say
Nonprofits should:
Stay close with donors. Let them know how the nonprofit is responding to today’s challenges and preparing for future challenges; what strategies are being employed to mitigate turmoil and maximize impact. Ask donors to help with ideas, advocacy and money. Some donors may restrict or delay charitable giving during uncertain times, while others will give more to help those individuals and institutions in greatest need. Keep broader audiences informed through direct-response emails and print mail, social media and website updates. Interact personally and directly with larger donors.
Encourage diverse giving channels among individual donors. Individuals account for 66% of total giving (84% when including family foundations and bequests). Fewer donors are giving more, and they are also activating and optimizing their giving with evermore complex and diverse financial tools: appreciated stocks and assets, personal or family foundations, required minimum distributions, charitable gift annuities. Board members should be familiar with the various giving options that relieve donors’ tax burdens, maximize wealth and future giving potential, and optimize community impact.
Optimize Donor-Advised Funds (DAFs). The value and number of DAFs is increasing, beyond just the wealthy. Work with individual donors to activate their DAFs to provide more resources to the nonprofit.
Partner with foundations. These organizations continue practices they adopted during COVID, offering simpler ways to request grants, less restrictive funding, faster deployment of funds and more funding for operations. With a greater emphasis on trust-based philanthropy, today’s foundations have an appreciation that on-the-ground nonprofit leaders know, better, the challenges their constituents face. Like individual donors, foundations are looking for new, diverse ways to give gifts or make investments to benefit society. However, they also are under intense scrutiny for the sizes of their endowments, the recent healthy returns on their investments, and who and how they serve. Foundations seek true partnerships to optimize their impact.
Help corporations position themselves as good citizens. Corporations are giving more because they see a greater need — in terms of social welfare, the environment, arts, education and more — and because their bottom lines are stronger, with higher pre-tax profits. They are giving more because they want to impress upon their communities that they are good citizens and to increase market share among like-minded people. Nonprofits should work with corporate partners to optimize not only their financial contributions but also their donations of expertise (i.e., marketing) and volunteer engagement.
Looking Forward
As nonprofits continue to face the ever-increasing confusion and concern out of Washington, it’s important to stay informed, be nimble, share success stories with allies and understand the power of the collective.
Networks of local organizations are coalescing at the national level to share knowledge and strategies, and to plan responses to everchanging government policies and resources. Organizations and nonprofits that serve similar needs or constituents are exploring alignment, partnerships and mergers to integrate programs, become more financially sustainable and better serve their communities.
Moreover, nonprofit leaders with strong boards of directors can leverage and deploy their volunteer leaders’ knowledge and networks to create awareness of how federal cuts have immediate, local consequences; to advocate for policy reversal; and to fundraise to fill the gaps. The lesson for fundraisers in today’s unknown climate: Don’t isolate — integrate and participate.
Where Did the Dollars Go?
Charitable giving increases in 2024 were fueled by strong GDP growth, a healthy stock market, decreasing inflation, lower unemployment and rising consumer confidence.
Philanthropic contributions by designation in 2024:
- Religion: $146.54 billion
- Human Services: $91.15 billion
- Education: $88.32 billion
- Foundations: $71.92 billion
- Public-Society Benefit: $66.84 billion
- Health: $60.51 billion
- International Affairs: $35.54 billion
- Arts, Culture, Humanities: $25.13 billion
- Environment/Animals: $21.57 billion
- Individuals: $23.59 billion
Remember: A nonprofit rarely fits into only one category; often it offers programs and services in other areas as well. To expand fundraising dollars, donors should explore institutional and individual donors who have a track record of supporting these top categories.
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.
