Insights Archive - Page 4 of 30

Forecasting fundraising revenue can be difficult in any given year, especially in 2024, as the economy fluctuates and a presidential election looms. Amid so much uncertainty about the future, it helps to center your forecasting exercises around the following fundamental principles using our downloadable fundraising revenue forecast template.

DOWNLOAD EXCEL FORECASTING TEMPLATE

With so much unknown, focus on what you do know. As fundraisers, what we know is our donors—we know who they are, how they’ve given, and when they’ve given. We can use this information to make educated assumptions about how they might give next year.
Focus on the funding sources disproportionately impacting the total funds raised. The Pareto Principle applies to many nonprofits, where 80-90% of funds come from 10-20% of donors. If you can understand what this top percentage of donors gives, you can better understand the following year’s fundraising revenue.

Combine our template with the following tips to develop your 2024 fundraising strategies.

Step 1: Get the Lay of the Land

Before making fundraising revenue projections, set yourself up for success by looking at the following resources.

Historic Philanthropic and Fundraising Data

It can be helpful to get an idea of the broader philanthropic landscape for overall giving statistics while keeping in mind that donors continue giving generously despite fluctuating economies. Further, Giving USA projects that total giving will increase in 2024 and 2025. It’s helpful to have this information as a backdrop for your projections.

If you’re on a computer, click on the three ellipses below and then the desktop icon to expand the graph. If you’re on your phone, pinch to zoom in and out.

Similarly, you should spend significant time understanding your own fundraising and donor data. We recommend starting with these basics, but you can pull additional pertinent information into your projections.

Year-Over-Year Total Funds Raised for at Least the Past Five Years

This data around your year-over-year revenue for the previous five years helps you understand your baseline. If you have data going back further than five years, that’s even better for forecasting purposes.

Top Current and Potential Donors and Their Giving Histories

Compile a list of donors (individuals, corporations, and foundations) with the potential to give $10,000 or more in 2024, including prospects who have given $5,000 or more in the past, along with high-scoring donors from your wealth screening ratings.

Subtotals by Method and Revenue Stream

To understand your revenue, look at the funds received by each method. Your revenue streams may include major gift solicitations, online fundraising, direct mail, or grant applications.

Last Year’s Gift

List the number of donors at each giving level in this chart, as a historic gift table is key to understanding your revenue breakdown.

Step 2: forecast revenue from Top Donors

Once you have your data, focus on predicting revenue from your top donor group. Remember, your best prospects are those who have already given generously to your organization.

Set Up a Tracking Worksheet

Given the importance of these few donors, track every top donor by name using the first tab of our fundraising revenue forecast template. This worksheet will allow you to note each donor’s historical giving, what you plan to ask them for in 2024, and what you think they’ll donate.

If you’re on a computer, click on the three ellipses below and then the desktop icon to expand the table. If you’re on your phone, pinch to zoom in and out.

Note: The data in the table below is fictitious and for illustrative purposes only.

Estimate Each Donor’s 2024 Gift

Remember that what you expect a donor to give differs from the amount you ask for. We recommend being conservative with gift projections but optimistic with request amounts. Fluctuating economic conditions don’t mean you can’t aim high and be bold in gift requests—your mission is always important. Still, it’s best to be conservative in estimating a likely 2024 gift.

To start, look at the donor’s past giving and recent behavior.

Consider your organization’s “batting average” for gift requests. Historically, how much did funders give compared to what was asked of them?
Use research resources like wealth screening tools WealthEngine or iWave to gain context on a prospect’s financial capacity. Or reach out to us about our data analytics services that layer wealth screening results with custom affinity models to provide you with the most accurate estimates and precise insights.

Have a Personal Conversation with a Top Donor

Remember that the best indicators of what a donor might give come from personal conversations with the donor. Calling your top donors to check in is a great stewardship practice. During these calls, you can deduce the donor’s giving potential for the upcoming year. Additionally, these conversations can set up the next step: scheduling a solicitation meeting.

Step 3: Make a Plan for Each fundraising Revenue Stream

Once you have established projections for your top donors, it’s time to look at other fundraising revenue streams. Tab two of our fundraising revenue forecast template will help you track this information. For each revenue stream, look back at its past performance at your organization, then combine that organizational information with current industry trends.

Note: The data in the table below is fictitious and for illustrative purposes only.

Below are some overall trends we see. Remember that these trends are not universal for all organizations—even organizations of similar missions, sizes, and locations see their fundraising evolve uniquely.

Individual Major Gifts and Foundations

Giving by individuals remains the largest source of philanthropy in the US, and according to The Philanthropy Outlook 2024 & 2025, individual/household giving is predicted to increase by 2.6% in 2024 and by 3.4% in 2025.

Corporate Giving

Corporate philanthropy has remained steady in the last few years despite a fluctuating economy, the pandemic, and various worldwide crises. Growth of the Gross Domestic Product, a strong labor market, and low unemployment have strengthened this fundraising area, and corporate giving is predicted to increase by 1.9% in 2024 and by 2.6% in 2025, although these numbers are predicted to be below the historical 10-year, 25-year, and 40-year annualized average growth rates for this sector.

Direct Mail

Direct mail remains an effective fundraising strategy, with almost half of the surveyed organizations in the 2024 Philanthropy Pulse citing direct mailings as a donor engagement tactic. We suggest projecting flat or slightly increased totals here.

Online Giving

Digital giving has been trending up, as evidenced by the 63% of donors who prefer to give online via credit or debit card. We suggest projecting a mild increase, especially if your organization is undertaking digital marketing campaigns and harnessing events like #GivingTuesday.

Special Events

We advise being conservative with estimates around this engagement strategy, even though events are still a top donor retention strategy for 71% of nonprofits.

Bequests

Although bequest giving has declined recently, it remains a widely used gifting vehicle. Therefore, it’s best to plan conservatively.

Non-Bequest Planned Gifts

These gift types may see an increase. For example, donor-advised funds (DAFs) are on the rise, and The Philanthropic Trust estimates that DAFs now hold assets upward of $228 billion. We would therefore advise planning for an increase in non-bequest planned gifts in 2024.

Step 4: Put It All Together in a Gift Table

Next, use tab three of our fundraising revenue forecast template to bring all these data points together on your gifts table.

If you’re on a computer, click on the three ellipses below and then the desktop icon to expand the table. If you’re on your phone, pinch to zoom in and out.

Note: The data in the table below is fictitious and for illustrative purposes only.

The example above shows that most funds (95%) are projected to come from 12 donors. If we focus on accurately projecting these 12 donors’ gifts and making sure these gift projections come to fruition, we’ll be in good shape for 2024. Of course, we still need to get direct mail out the door, launch our online appeals, and fulfill the rest of our fundraising plans, but the bulk of our focus should be on the top part of this gift table.

Step 5: Turn Your Plan into Action

Now, it’s time to determine how to make your gift projections a reality. Tab four of our fundraising revenue forecast template will help plot out your projections month by month.

Keep This in Mind When Building Your Fundraising Revenue Timeline

For top donors, the next gift will often be a year out from their last gift. For foundations, the foundation granting cycle will inform timing.
You can also plot out the dates of your direct mail appeals and big online giving campaigns, so you know when to expect surges in revenue from these sources.
Plotting out sources like bequests is difficult, but most of your revenue should be anticipated in the chart.

Our fundraising revenue timeline template, as shown in the example below, helps you compare projections versus reality. You’ll know early on if you were too conservative or optimistic in your projections. After reviewing your progress, you can adjust your projections for the remainder of the year as appropriate.

If you’re on a computer, click on the three ellipses below and then the desktop icon to expand the table. If you’re on your phone, pinch to zoom in and out.

Note: The data in the table below is fictitious and for illustrative purposes only.

Tips for Successful Fundraising Predictions

Keep the following principles in mind as you continue planning for 2024 and adjusting your course as the year progresses.

Take time to pull and organize data and look at key trends.
Focus on your top donors.
Be optimistic with gift requests but conservative in projections.
Lay your projections on a timeline so you can adjust in real time.

Happy forecasting!

DOWNLOAD EXCEL FORECASTING TEMPLATE

Planning for the future of your organization’s fundraising?

CCS offers a suite of services related to organizational planning and fundraising strategy.

CCS Fundraising is excited to share The Philanthropy Outlook 2024 & 2025 report. This publication, researched and written by the IU Lilly Family School of Philanthropy, forecasts the giving environment of the next few years, focusing on the notable trends nonprofit practitioners will likely see in the space. In addition to exploring the economic variables impacting philanthropy, this data-driven report projects total giving and giving by all four donor sources, including households, foundations, estates, and corporations.

ACCESS THE REPORT

The cover page of The Philanthropy Outlook 2024 & 2025, which includes an image of person looking confidently ahead in an urban landscape.

Most notably, the study found that charitable giving is expected to grow in 2024 and 2025—both overall and for each source:

Total charitable giving is expected to rise above the historical 10-year, 25-year, and 40-year annualized average rates of growth in both 2024 and 2025.
Giving by households is predicted to grow but will trail the rate of growth for total giving.
Giving by foundations is expected to experience strong growth, outpacing growth rates for total giving in 2024 and 2025.
Giving by estates is anticipated to experience stronger growth in 2025, rising above the historical 10-year, 25-year, and 40-year annualized average rates of growth.
Giving by corporations is also projected to grow but will lag historic rates of growth for this sector.

For an engaging discussion on takeaways from the report with esteemed industry panelists in finance, nonprofit fundraising, and philanthropy, explore our Philanthropy and Economic Outlook webinar.

More Insights

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Philanthropy and Economic Outlook Webinar

March 12, 2024

The economy’s impact on philanthropy is one of the most pressing topics for nonprofit leaders today. Plan your organization’s fundraising with confidence with this on-demand video and accompanying article.

Article

Charitable Giving During Presidential Elections

February 23, 2024

As we approach the 2024 US presidential election, many nonprofit professionals wonder if and how politics will affect this year’s charitable giving landscape. Read on as we examine research that helps us understand the relationship between nonprofit fundraising and political giving.

Publication

CCS Philanthropy Pulse

February 15, 2024

CCS’s annual Philanthropy Pulse report provides nonprofits with helpful data to navigate the ever-evolving philanthropic space.

New York, NY – CCS Fundraising, a leader in nonprofit fundraising and strategic consulting, is thrilled to announce the promotion of five new Partners. These elevations are reflective of decades-long careers of client impact and reflect CCS’s ongoing commitment to recognizing talent, dedication, and expertise within its leadership team.

Adam Miller, Aashika Patel, Natalie Skinner, Ian Swedish, and Kate Villa have been instrumental in driving fundraising success and lasting community impact for CCS clients, and their contributions have been invaluable to the firm.

Adam Miller is a leader in providing strategic guidance to national and international nonprofits across all sectors, designing innovative fundraising initiatives, directing extraordinary campaigns, and advising on resource development models. He is an expert in board engagement, campaign methodology, principal and major gift strategies, growth and sustainability planning, among others. His engagement as a presenter at global development conferences and as a published author in numerous journals and business publications has helped both his clients and the firm achieve transformative impact. Adam earned a JD from Loyola University Chicago and a BA from Indiana University.

Aashika Patel brings over 12 years of fundraising experience working with CCS, supporting clients with financial targets totaling over $1 billion. Guided by measurable, actionable plans, Aashika leverages fundraising strategy, data analytics, staffing assessments, pipeline development, and leadership engagement to grow fundraising capacity for nonprofits across every philanthropic sector. She earned a Bachelor of Arts in Philosophy and South Asian Studies from Syracuse University and holds a master’s degree in Fundraising and Grantmaking from New York University.

Natalie Skinner joined CCS in 2011 and has since conducted numerous capital campaigns, feasibility and planning studies, development assessments, annual fund enhancements, strategic plans, and special development projects that cumulatively raised more than $1 billion for her clients, including multiple $100 million gifts. Her expertise and strategic insights have played a pivotal role in optimizing fundraising efforts for nonprofits across various sectors and won her recognition with the Dennick M. W. Skeels Memorial Award for her work in CCS’s Mid- and South-Atlantic Region. Natalie earned her Honors Bachelor of Arts degree in Psychology from University of Delaware.

Ian Swedish has been a key member of CCS for over 14 years, counseling nonprofit clients in strategic planning initiatives, feasibility analysis, data analytics, capital campaigns, and broad scale plan activation. His work spans organizations that are regional, national, and global in scale across all philanthropic sectors. He maintains a deep skillset in both data and fundraising strategy and was instrumental in standing up a data analytics shared service line for the firm. Ian holds an MBA and MPP from the Ross School of Business and the Gerald R. Ford School of Public Policy at the University of Michigan and a BA from the University of Vermont.

Kate Villa has been helping to design, plan, and implement successful fundraising campaigns for more than 25 years. She excels at creating and executing campaign plans that connect donors’ passions with projects that change the world. Her expertise in comprehensive campaign design and management, planning studies, assessments, and leading staff and volunteer teams to develop tailored strategies to achieve ambitious fundraising goals have consistently contributed to the growth and success of CCS’s clients. Kate graduated from Phillips Exeter Academy and Columbia University.

“I am excited to see Adam, Aashika, Natalie, Ian, and Kate elevated to the role of Partner,” said CCS Fundraising CEO, Jon Kane. “Their dedication, expertise, and unwavering commitment to our clients exemplify CCS’s values. I’m confident that they will continue to drive transformational change and make a lasting impact in their new roles.”

These promotions come at an exciting time for CCS Fundraising as the firm continues to expand its reach and impact in the nonprofit sector. With the addition of these five partners, CCS strengthens its position as the world’s leading fundraising and strategic consulting firm.

About CCS Fundraising

CCS Fundraising is a strategic consulting firm that has partnered with nonprofits for transformational change for more than 75 years. CCS provides various services to support and strengthen nonprofit fundraising programs, including campaign management, strategic planning, data analytics, gift planning, systems and change management, and major gift strategy. The firm’s expert consultants, skilled in campaign and development strategy, work closely with organizations of all sizes across nonprofit sectors and geographies.

For more information on CCS Fundraising, please visit www.ccsfundraising.com.

DOWNLOAD SLIDES

EXPLORE REPORT

In this CCS Fundraising webinar, we preview findings from the upcoming Philanthropy Outlook 2024-2025 report, researched and written by the IU Lilly Family School of Philanthropy. Together with our esteemed industry panelists in finance, nonprofit fundraising, and philanthropy, we explore the realities of today’s philanthropic and economic outlook and how Americans continue giving generously.

PRESENTED BY

Dr. Anna Pruitt

Managing Editor, Giving USA

IU Lilly Family School of Philanthropy

Jeff Erdmann

Managing Director and Private Wealth Advisor

Merrill Lynch

Chris Hyzy

Chief Investment Officer

Bank of America

Dr. Michael Lomax

Chief Executive Officer

United Negro College Fund

Frederic J. “Rick” Happy

Chair

Sarah Krasin

Managing Director

Why Philanthropy Remains Resilient

Even with recent economic fluctuations and global crises, philanthropy can anticipate some bright spots in the years ahead, according to the Philanthropy and Economic Outlook webinar and accompanying Philanthropy Outlook 2024 & 2025 report.

Total philanthropic giving in the United States is poised to increase by 4.2% in 2024, followed by a 3.9% rise in 2025. The anticipated growth rates for these two years suggest a notable improvement, with the rate for 2024 (4.2%) substantially exceeding the average annual growth rate of 1.9% documented in the decade ending in 2024. As we delve into the implications of this anticipated growth, we uncover a narrative of resilience, innovation, and unwavering dedication to making an impact through charitable giving.

Strength and growth of philanthropy

The resilience and growth of philanthropy have been noteworthy, particularly during economic downturns and the COVID-19 pandemic. Notably, philanthropy in the US demonstrated remarkable resilience during the pandemic crisis year of 2020, with donations reaching a record-setting $471.44 billion.

This level of generosity showcases a deep commitment to philanthropy, emphasizing the importance of nonprofits continuing their fundraising efforts despite challenges. CCS Chairman Rick Happy noted, “We have lived through some difficult moments, and during those times, our nonprofit partners continue to adapt to meet the moment,” underscoring the critical nature of persistence and strategic adaptation in the face of adversity.

impact of wealth creation on philanthropy

Nonprofits across the country benefit from generosity among high-net-worth individuals (HNWIs). Chris Hyzy, Chief Investment Officer at Bank of America, pointed out, “Since January 1, 2020, we’ve observed about $39 trillion in wealth creation between real estate and financial assets,” highlighting the potential for nonprofits to engage with individuals who are becoming more affluent and looking to make an impact on a meaningful mission.

Philanthropy among HNWIs has spiked in the past few years. In 2022, HNWIs continued to significantly impact philanthropy through their contributions. The top 10 charitable gifts announced by these individuals or their foundations amounted to nearly $9.3 billion. This figure was highlighted by a substantial $5 billion donation from Bill Gates, positioning him as the top donor for that year. In 2023, the top 50 US donors—led by Michael Bloomberg, Phil and Penny Knight, and Michael Dell—made a generous $11.9 billion donation.

shift toward cause-driven giving

There has been a shift toward cause-driven giving, with donors increasingly motivated by personal values over institutional loyalty. This trend necessitates clear communication by nonprofits about their impact and alignment with donors’ values. CCS Managing Director Sarah Krasin explained, “More people give to nonprofits than go to the ballot box […] charitable giving is an incredibly important way that people represent their personal values,” emphasizing the need for alignment with donor interests.

Now more than ever, it is more important to have a clear case for support and to engage personally with stakeholders.

We encourage focusing on your strategic priorities and doing the work, really getting in front of people.
Sarah Krasin, Managing Director, CCS Fundraising

digital innovation in fundraising

Innovation, particularly through technology, is becoming crucial in fundraising. National trends underscore the growing sentiment that nonprofits must adopt new technologies and platforms to engage donors effectively. “Think generative AI,” Chris Hyzy suggested, pointing to the potential of technology to enhance fundraising strategies and operational efficiency.

increasing donor sophistication

Donors are seeking more sophisticated ways to contribute, focusing on tangible outcomes and the effectiveness of their donations. “They operate a bit more like private equity companies, asking, ‘What will the return be?'” observed Dr. Michael Lomax, CEO of the United Negro College Fund, indicating a trend toward social impact investing and the need for nonprofits to demonstrate the effectiveness of their programs. Donors increasingly turn to research institutes to define high-impact philanthropy and offer strategies to maximize their philanthropic investments.

engagement across generations

Engaging with millennials and Gen Z is essential for the sustained growth of philanthropy.

You’ve got about 130 million millennials. They will be the donors of the future.
Chris Hyzy, Chief Investment Officer, Bank of America

As you engage young professionals in your organization, you could consider leveraging social media, honest and authentic communications, career and age-relevant volunteer opportunities, and ambassadorship programs.

building trust and credibility

Building trust and credibility with donors is paramount in the current philanthropic landscape. “It’s not a question of if the assets are available to be given away. It’s a matter of if we’ve taken the time to build the trust,” Sarah Krasin emphasized, highlighting the importance of effectively communicating an organization’s vision, impact, and operational effectiveness to attract and retain support.

philanthropy remains resilient

In the ever-evolving philanthropic landscape, donors continue giving generously even in adversity. As we look to the future, characterized by a shift toward cause-driven giving, increasing donor sophistication, and intergenerational engagement, one truth remains—the importance of trust and credibility. Through transparency, impact-driven strategies, and genuine connection with stakeholders, philanthropy’s transformative potential will continue in 2024, 2025, and beyond.

Frequently Asked Questions (FAQs)

On the Report Methodology

**Do growth projections in The Philanthropy Outlook 2024 and 2025 account for inflation?**

Yes, growth projection values in the report are all in real or inflation-adjusted terms.

Does the Foundation growth projected in the report include Donor Advised Funds (DAFs) and private family foundations?

Giving from private family foundations is included under giving from foundations in The Philanthropy Outlook 2024 and 2025. DAF giving, however, is included under individual giving.

Does the report consider the upcoming US presidential election?

The report does not include the 2024 US presidential election as a factor in its projections, as presidential elections have historically not significantly affected charitable giving in aggregate. Learn more about trends in giving around presidential elections in CCS’s article “Charitable Giving During Presidential Elections.”

Does the report consider increasingly concentrated wealth in the US?

The Philanthropy Outlook 2024 and 2025 accounts for all giving, including outlier giving from high net-worth individuals, and focuses on aggregates, not averages. While we know that concentrated wealth greatly affects giving, exactly how is unclear.

Is an increase in donors the biggest factor in the projected growth in household giving, or are large gifts the biggest factor?

The Philanthropy Outlook 2024 and 2025 does not consider the number of donors and individual gift amounts and only projects aggregate growth rates. However, the number of donors to nonprofits has trended down over time, so it is unlikely to be a growth driver in 2024 and 2025 giving.

Does the report’s projected Household growth account for generational wealth transfers?

The model used to forecast estate growth in The Philanthropy Outlook 2024 and 2025 does not have a variable that directly measures the impact of generational wealth transfers. However, historical trends in the report will likely capture the impact of a Great Wealth Transfer when it occurs. If they cannot capture impact in the short term, the model (which the IU Lilly Family School of Philanthropy optimizes each year based on predictive value) may contain a death rate or similar variable in future report editions.

Does the report include household/individual projections by sector?

It does not. The aggregate amount of donations received by each nonprofit sector tends to be more variable year-over-year, affected by complex factors, and is more challenging to project accurately.

Does the report differentiate individual giving by donors who itemize and donors who don’t, or high-net-worth individuals?

The Philanthropy Outlook 2024 and 2025 does not differentiate between itemized and non-itemized individual giving. However, it bases its individual giving data on the 2023 Giving USA report, which does differentiate itemized and non-itemized individual giving. Additionally, The Philanthropy Outlook 2024 and 2025 report model does include the number of itemizers as a variable but does not project the amount of giving that will come from households of specific demographics or wealth levels.

Does the report’s projected corporate growth consider the negative impact of climate change?

The report only considers climate change’s negative impact implicitly through historical data and recent trends.

Additional Trends and Insights

What are the current giving trends in the US?

CCS’s 2023 Philanthropic Landscape report compiles and analyzes the most recent data on giving from across industry sources. We recommend viewing it along with the CCS 2024 Philanthropy Pulse report for the latest data on nonprofit fundraising trends.

Is giving in the US down overall for 2022 and 2023?

Giving total adjustments are usually made based on inflation activity and the availability of additional giving data. While giving in 2022 has initially been reported to total $499.33 billion — a decline of $17.32 billion from 2021’s record-setting giving — comparing 2022’s initially-reported giving total to 2021’s pre-adjusted, initially-reported giving total of $484 billion suggests that charitable giving actually increased by 3%. Giving USA will share 2023’s total giving in the summer of 2024.

Why does the report project giving in 2025 to double giving in 2024?

The Indiana University Lilly Family School of Philanthropy finds that many economic indicators for estate giving lag a year behind. With consumer sentiment and net worth projected to grow even more in 2024 than in 2023, estate growth rates in 2025 will grow even more than in 2024.

Were any projections made for philanthropy in 2022 or 2023? If so, how accurate were the projections?

As The Philanthropy Outlook 2024 and 2025 report is the first of its kind, CCS Fundraising and the Indiana University Lilly Family School of Philanthropy did not make any projections for previous years. However, the methodology in the Philanthropy Outlook 2024 and 2025 has been rigorously tested. Additionally, CCS will release a 2^nd edition of the report in 2027.

Given the growth rate of foundations, what will be the top three areas of giving from foundations in 2024 and 2025?

While top areas of giving from foundations are not a component of The Philanthropy Outlook 2024 and 2025 report, the Indiana University Lilly Family School of Philanthropy does not anticipate foundation grant-making to diverge too significantly in the short term compared to the recent past. Eventually, giving from foundations may shift more significantly, but probably not in the next two years.

Will nonprofits benefit from the Great Wealth Transfer if it occurs as the philanthropic sector anticipates?

It is unclear where money from the Boomers will go as they transfer it to the younger generations. Often, donors give large bequests to foundations or other grantmaking institutions, so nonprofits may not immediately benefit from the Great Wealth Transfer but will likely experience a future boon.

How do foundations determine their level of giving?

While each foundation is different, grantmaking from foundations generally follows the market (with a slight lag), as investments often form their asset base. Most foundations grant approximately the required 5% of assets annually, though the amount can be calculated over a three-year rolling investment performance period.

Will consumer prices be impacted by lowering inflation?

At the time of the Philanthropy and Economic Outlook webinar, consumer prices seem to be increasing roughly in pace with other inflation measurements. The consumer price index increased about 3.2% year over year in February 2024, which, while higher than the targeted rate of 2%, was within historical norms. If different inflation indices continue to show large divergences, we may need to revisit trends in consumer prices.

More Insights

Publication

The Philanthropy Outlook 2024 and 2025

March 13, 2024

Strengthen your fundraising strategy this year and next with this data-driven publication, revealing predictive insights for the philanthropic sector in the years ahead.

Article

Charitable Giving During Presidential Elections

February 23, 2024

Publication

CCS Philanthropy Pulse

February 15, 2024

CCS’s annual Philanthropy Pulse report provides nonprofits with helpful data to navigate the ever-evolving philanthropic space.

Research on how the US presidential election years impact giving is limited. We should look thoughtfully at 2020, the last election cycle, as the COVID-19 pandemic had unprecedented effects on the economy and how Americans gave. The following is what the data suggests about philanthropy in election years.

Philanthropy for Enhanced Democracy

While we don’t know if charitable giving will mimic 2020, recent grants indicate that donors, including mega donors, are willing to give to increase voter participation. The Open Society Foundations granted $50 million in December 2023 to encourage young people and women to vote, while MacKenzie Scott gave $10 million to the State Infrastructure Fund for increased voting participation and protected voting rights.

Aggregate giving in election years

The 2023 Philanthropic Landscape reveals that charitable giving increased in nine of the last 10 presidential election years, save for 2008 during the global financial crisis. The charitable giving numbers for an election year tend to follow the trajectory seen in previous years, whether it is an upward or a downward trend. This trend has been observed despite variety in elected candidates, and thus indicates that philanthropy has and will remain resilient despite election outcomes.

Political Giving as a Share of All Giving

In the final few months of each presidential election, political giving spikes as a percentage of total giving, then resettles to lower levels shortly afterward. In more recent presidential election years, political giving appears to make up an increasingly large percentage of all giving during the months surrounding the election. The increasing share of giving during election seasons dovetails with other research that more and more Americans donate to political candidates over time. According to American National Election Studies (ANES) data, 12% of US adults say they donated to a political candidate in 2016.

Does Political Giving “Crowd Out” Individual Charitable Giving?

While political giving appears to be around $2.7 billion so far for the 2024 election year, it represents a small fraction of charitable giving, estimated to total $499.33 billion in 2023.

Though it may seem logical that donors of political campaigns may give less to charity in an election year, there is little empirical evidence to support this. In fact, a study by Blackbaud suggested that in the 2012 election, donors who gave to presidential and other federal candidates (as tracked by the Federal Election Commission) tended to increase their overall donations to charity that year.

“Rage Giving” After Presidential Elections

Following the 2016 election, the media widely reported increased donations to politically progressive causes, coined “rage giving.” Several small studies support that donors may be more inclined to donate to causes associated with the losing candidate’s party following a presidential election than they otherwise would be. While many of these studies have relatively small sample sizes and tend to focus on online giving—which grew by 42% between 2019 and 2021—the research provides some empirical evidence for the phenomenon of “rage giving.”

A Chronicle of Philanthropy analysis suggests that a similar phenomenon has occurred during at least three other elections. On average, nonprofits associated with the opposite political ideology of the winning presidential candidate saw a 57.55% increase in contributions compared to the previous year. Organizations associated with the same ideology as the new president saw an average 2.9% decrease in contributions.

Our Advice for fundraising in an election year

While it may be impossible to fully predict how a presidential election will impact philanthropic giving, we can offer insight into successfully engaging with your donors amidst the political climate.

Continue Fundraising Efforts

More than $3 billion was donated to the two major party candidates in the 2020 election, leading to concern about the competition that political giving may pose to charitable giving. While it is important to research the political giving of your largest donors before major requests, history tells us that donors continue supporting their favorite charitable causes during an election year. Record numbers of Americans voted in the 2020 presidential election; the sheer number of voters is an exciting indicator of increased civic engagement in the US, potentially having ripple effects on charitable giving and volunteering.

Practice Empathy and Awareness

Remember that emotions may run high, especially given the increased voter turnout during the last election. It is essential for charitable organizations to lead with empathy when communicating with donors, staff, and volunteers. Stay aware of how the election results may affect the lives of those closest to your organization.

Remain Committed to Your Mission and Communicate With Donors

Now is a time to reaffirm your organization’s mission, purpose, and values. If your mission was relevant before the election, it will be relevant afterward. With this idea in mind, continue donor communications, thoughtfully articulating your cause’s relevance to today’s world. Americans are passionate about various causes, from the environment to the arts to human services. These passions continue regardless of election outcomes, policy changes, and other societal factors.

Americans are generous, no matter the political climate

Today, as always, charitable giving is a way for Americans to support the values they cherish and empower the organizations that contribute to their communities and the world.

To get more data on philanthropy in the US, download CCS Fundraising’s latest Philanthropic Landscape, 12^th edition.

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Maximizing Fundraising Opportunities in South Florida

December 18, 2024

South Florida is experiencing great philanthropic growth, and the momentum looks likely to continue well into the future. In this article, we help you understand the most important trends and components of the philanthropic landscape that will help you maximize fundraising opportunities in South Florida.

Publication

The 2024 National Diocesan Report

September 20, 2024

This comprehensive survey report of stewardship and development practices across 75 Catholic dioceses and archdioceses in the United States was produced by CCS and ICSC.

Coming Soon:

2025 CCS Philanthropy Pulse Report

Get notified about the report release!

2024 cCS Philanthropy Pulse Report

CCS Fundraising is thrilled to share our latest Philanthropy Pulse report in a new, interactive format. Unlock the heartbeat of philanthropy by clicking the widget below:

The 2024 CCS Philanthropy Pulse report offers invaluable perspectives on the present and future state of philanthropy based on data CCS collected from over 600 organizations across nonprofit sectors in late 2023.

Click to explore 2024 CCS Philanthropy Pulse Report

Key Findings:

Fundraising revenue grew across the board in FY22. However, organizations with larger fundraising budgets saw better revenue performance than that of their peers.
With donor retention a top challenge, only 48% of organizations reported retaining over half their new donors in the previous 12 months.
Only about one-third of organizations increased fundraising staff in 2023, but 68% have increased staff pay.
While fundraiser comfort in using data has increased over the past 3 years, most organizations are not yet leveraging AI technology.

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Philanthropy Pulse Sector Spotlights

Dive into our sector spotlights below for data specific to Arts & Culture, Health, Higher Education, Human Services, Primary & Secondary Schools, and Faith.

Primary & Secondary Schools

Faith

As you dive into the report and sector spotlights, what data points stick out to you?

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Download the Human Services Spotlight infographic, or explore the 2024 Philanthropy Pulse report in its entirety.

This Human Services Sector Spotlight is adapted from CCS’s 2024 Philanthropy Pulse report to provide an in-depth look at the data provided by 143 survey respondents from that sector.

fundraising practices

Following an 8% three-year decrease in human service nonprofit revenue in 2022, most human services organizations (59%) report revenue increases vs. their prior fiscal year, as compared to 57% across all sectors. Just over half (53%) of organizations get 20% or less of their giving in the form of non-cash assets, which is the highest rate among each of the other sectors.

Just over half (53%) of human services organizations anticipate no change in their fundraising revenue in the coming year as a result of the upcoming election and pending public policies. While it is certainly important to research the political giving of your largest donors in advance of major requests, know that history tells us that donors continue to support their favorite charitable causes during an election year.

trends in funding priorities

In the past twelve months, organizations saw an increase in demand or outsized growth of funding for the following specific services.

human services sector projections and priorities

Sixty-seven percent (67%) of participants expect major and mid-level gifts and annual appeals to increase in 2024. Organizations might consider using wealth screening and an RFM analysis to mine your prospect list for meaningful opportunities, particularly after many human service nonprofits expanded their donor databases during COVID-19 crisis support. Seventy-five percent (75%) of respondents believe DEI is important to define their organization’s values, compared to 77% across sectors.

staffing and resourcing in the human services sector

In 2023, 38% of responding human services organizations increased their fundraising staff, compared to about one-third across sectors. This is also the highest rate among each of the other sectors. While 68% of all organizations increased staff pay by 1-10% over the past three years, 69% of organizations in this sector saw an increase. While seeking to attract talented staff, human service nonprofits might consider highlighting this figure and challenging other assumptions at the onset of the recruitment process.

donor acquisition and retention

Fifty-four percent (54%) of organizations indicate that their number of new donors has increased in the past 12 months, which is similar to 57% across sectors. Forty-four percent (44%) of organizations report retaining over half of their new donors over the past 12 months, compared to 67% overall. Human services nonprofits might consider leveraging specialized legacy societies as a powerful donor acquisition and retention tool.

human services data and technology

Sixty-four percent (64%) of participants describe their organization’s reporting and analytics capabilities at a leading level or higher of sophistication, versus 58% across sectors. While 58% of all organizations have not addressed the use of AI technology in their operations, 54% in this sector have not. Human services nonprofits could leverage guiding questions to implement AI in their fundraising practices.

The data on this page was curated from a questionnaire taken by over 600 responding organizations during the fall of 2023, reporting on FY23 results.

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Download the Arts and Culture Spotlight infographic, or explore the 2024 Philanthropy Pulse report in its entirety.

This Arts and Culture Sector Spotlight is adapted from CCS’s 2024 Philanthropy Pulse report to provide an in-depth look at the data provided by 58 survey respondents from that sector. A variety of arts and culture organizations are represented in this year’s report.

fundraising practices

Most arts and culture institutions (59%) report revenue increases vs. their prior fiscal year, as compared to 57% across all sectors. About half (47%) of organizations get 20% or less of their giving in the form of non-cash assets, despite evidence that nonprofits accepting non-cash donations grow nearly five times faster on average than organizations accepting only cash gifts.

arts & culture projections and priorities

At least 64% of participants expect major and mid-level gifts and annual appeals to increase in 2024. Seventy-one percent (71%) believe DEI is important to define their organization’s values, compared to 77% across sectors. Embracing inclusivity and focusing on DEI issues can be crucial for engaging next-gen donors who prioritize global issues embedded in the arts and culture sector, such as social justice and free expression.

staffing and resourcing in the arts & culture sector

In 2023, 29% of participating organizations increased their fundraising staff, compared to about one-third across sectors. While 68% of all organizations increased staff pay by 1-10% over the past three years, 69% of organizations in this sector saw an increase. Beyond fundraising staff, many arts and culture organizations are turning to their board members for additional advancement support.

donor acquisition and retention

Sixty percent (60%) of organizations indicate that their number of new donors has increased in the past 12 months, as compared to 57% across sectors. Fifty-three percent (53%) of organizations report retaining over half of their new donors over the past 12 months, compared to 67% overall.

The introduction of flexible donation options like 'Donate Now, Pay Later' might be beneficial, especially in engaging a broader range of donors. Many arts and culture institutions are also rethinking their membership strategies by segmenting members as either transaction-motivated or mission-motivated. Using segmentation can help inform your tailored approach to fundraising and communication for each type of member. Moreover, CCS has found more effective prospecting through donor segmentation with our clients.

arts & culture data and technology

Half of the participants describe their organization’s reporting and analytics capabilities at a leading level or higher of sophistication, versus 58% across sectors. While 58% of all organizations have not addressed the use of AI technology in their operations, 72% in this sector have not. This poses a huge opportunity for arts and culture institutions: the use of AI in identifying prospective donors, generating donor narratives, and other applications for authentic relationships can offer significant support.

The data on this page was curated from a questionnaire taken by over 600 responding organizations during the fall of 2023, reporting on FY23 results.

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Download the Faith Spotlight infographic, or explore the 2024 Philanthropy Pulse report in its entirety.

This Faith Sector Spotlight is adapted from CCS’s 2024 Philanthropy Pulse report to provide an in-depth look at the data provided by 50 survey respondents from that sector.

Respondents representing a congregation, house of worship, or parish constituted the most common (47%) type of survey participant. The four most common religious affiliations included Roman Catholic (57%), Anglican/Episcopal (18%), Jewish (8%), and Presbyterian (8%).

fundraising practices

Just under half (48%) of all religious organizations report revenue increases vs. their prior fiscal year, as compared to 57% across all sectors. The majority (52%) of organizations get 20% or less of their giving in the form of non–cash assets.

Eighty-one percent (81%) of religious institutions achieved 0-20% of their endowment in 2023. Religious institutions might consider leveraging endowment fundraising tactics from the education sector to inform an alternative approach to sustainable funding.

religious institutions’ projections and priorities

Fifty-two percent (52%) of participants expect major and mid-level gifts and annual appeals to increase in 2024. With a renewed focus on digital giving, faith-based organizations might consider highlighting faith-based values in online communications. For example, Jewish synagogues could include a Tzedakah donation page on their website.

Sixty-eight percent (68%) of respondents believe DEI is important to define their organization’s values, compared to 77% across sectors.

To support pastoral planning, houses of worship participated in a myriad of staff exercises (below). Religious leadership could leverage our seven steps for planning, implementing, and integrating a visioning workshop at their congregation.

staffing and resourcing in the faith sector

In 2023, 18% of responding organizations increased their fundraising staff, compared to about one-third across sectors. While 68% of all organizations increased staff pay by 1-10% over the past three years, 48% of organizations in this sector saw an increase. In one national survey of Christian institutions, 37% cited staff recruitment and retention as their top challenge. Improved benefits, increased pay, and a focus on staff referrals may help support funding and retaining top talent at your faith institution.

donor acquisition and retention

Sixty-four percent (64%) of organizations indicate that their number of new donors has increased in the past 12 months, as compared to 57% across sectors. Sixty-four percent (64%) of organizations report retaining over half of their new donors over the past 12 months, compared to 67% overall. Faith-based institutions might consider leveraging specialized legacy societies as a powerful donor acquisition and retention tool.

Notably, 66% of Catholic respondents achieved over 80% of their annual stewardship appeal goal. Successful parishes leverage peer-to-peer strategies and archdiocesan resources to ensure an efficient approach to fundraising.

data and technology in the faith sector

Forty-eight percent (48%) of participants describe their organization’s reporting and analytics capabilities at a leading level or higher of sophistication, versus 58% across sectors. While 58% of all organizations have not addressed the use of AI technology in their operations, 70% in this sector have not. Faith institutions could could leverage guiding questions to implement AI in their fundraising practices.

The data on this page was curated from a questionnaire taken by over 600 responding organizations during the fall of 2023, reporting on FY23 results.

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Download the Higher Education Spotlight infographic, or explore the 2024 Philanthropy Pulse report in its entirety.

This Higher Education Sector Spotlight is adapted from CCS’s 2024 Philanthropy Pulse report to provide an in-depth look at the data provided by 56 survey respondents from that sector. The most recent data reports that higher education institutions witnessed a notable 12.5% increase in philanthropic donations, reaching $59.50 billion, with significant growth in donations directed towards restricted endowments, largely for scholarships, and academic research.

A variety of higher education organizations are represented in this year’s report.

fundraising practices

Most institutions (63%) report revenue increases vs. their prior fiscal year, which is the highest rate among each of the other sectors and the combined rate (57%). About two in five (43%) schools get 20% or less of their giving in the form of noncash assets. Though often overlooked, there is potential in retirement assets for charitable giving; institutions of higher education might consider focusing on noncash donation vehicles that offer personal financial advantages during major gift conversations.

Most funding for institutions of higher education comes from major gifts, followed by foundation and corporate grants. Notably, 11% of all corporate giving over the past 20 years has gone towards higher education.

higher education projections and priorities

Seventy-seven (77%) of participants expect major and mid-level gifts and annual appeals to increase in 2024, which is the greatest rate when compared to other sectors. Likewise, seventy-seven (77%) of respondents believe DEI is important to define their school’s values, which is the same percentage reflected across sectors. Fundraising for DEI initiatives at colleges and universities will remain a key link between school values and DEI outcomes, such as the growing need for support reflected in a recent national survey.

staffing and resourcing in the higher education sector

In 2023, 29% of responding institutions increased their fundraising staff, compared to about one-third across sectors. While 68% of all organizations increased staff pay by 1-10% over the past three years, 75% of schools in this sector saw an increase. Managing fundraising efficiency and staff ratios in light of these evolving sector dynamics remains an important way to maximize ROI and employee satisfaction.

donor acquisition and retention

Alumni continue to be a key source of new and existing donors among institutions of higher education. The top three alumni engagement strategies include alumni reunions/events (59%), annual giving campaigns (50%), and targeted digital communications (43%).

Forty-five percent (45%) of higher education institutions indicate that their number of new donors has increased in the past 12 months, as compared to 57% across sectors. Colleges and universities might consider sourcing new donors by re-engaging those closest to their organization, including board members and faculty.

Fifty percent (50%) of schools report retaining over half of their new donors over the past 12 months, compared to 67% overall.

data and technology in higher education fundraising

Sixty-one percent (61%) of participants describe their organization’s reporting and analytics capabilities at a leading level or higher of sophistication, versus 58% across sectors. In recent years, great strides have been made at universities across the country to develop comprehensive data management protocols.

The two most common measures of efficacy and performance tracked by institutions of higher education are the number of new gifts (76%) and the number of proposals/solicitations (69%). While 58% of all organizations have not addressed the use of AI technology in their operations, 70% in this sector have not.

The data on this page was curated from a questionnaire taken by over 600 responding organizations during the fall of 2023, reporting on FY23 results.

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