Philanthropic Trends In The Southeastern U.S.: Engaging An Influx Of New Donors

Created By: Piper Hardin, CFRE
October 29, 2024

The Southeastern United States is experiencing a surge in philanthropy. As an increasing number of wealthy individuals relocate to states like Florida, Georgia, North Carolina, and South Carolina, they bring with them not only their resources but also a desire to engage with local causes. This influx of high-net-worth individuals (HNWIs) is presenting nonprofits in the Southeast with a unique and timely opportunity.

These new residents—many moving in the aftermath of COVID-19, drawn by the region’s favorable tax environment and high quality of life—are eager to contribute to their new communities. This moment in time offers nonprofits a chance to harness this growing interest in philanthropy and turn it into meaningful, long-term support.

This migration trend is not just a passing phase; it’s reshaping the philanthropic landscape of the Southeast. Nonprofits that act quickly and strategically will find themselves well-positioned to build lasting relationships with this growing pool of philanthropists. Here are some of the key trends currently shaping giving in the region:

Growth in Charitable Giving in the Southeastern U.S.

The Southeast has seen remarkable growth in charitable giving, signaling a shifting philanthropic landscape. In 2021, charitable giving in the U.S. totaled over $484 billion, with Southern states experiencing some of the highest year-over-year increases.

Florida, for example, saw a 13% jump in individual charitable giving between 2020 and 2022, driving the state to rank 6th in the nation for charitable donations in 2021, with residents contributing approximately $12.6 billion. Much of this growth has been fueled by new residents eager to support local causes. By 2022, Florida was home to over 390,000 HNWIs, according to Capgemini’s World Wealth Report, further bolstering its philanthropic landscape.

Georgia’s philanthropic activity is also on the rise, with a 6.1% increase in contributions in 2021, bringing the state’s total donations to over $5.4 billion. Similarly, Virginia experienced a 5.7% growth in charitable contributions, with significant increases in donations to health and human services organizations.

North Carolina’s charitable giving grew by 7.2% in 2021, with education and community development standing out as key areas of support.

South Carolina saw a 5.9% rise in donations, as more attention was focused on supporting local communities and educational initiatives.

These growing numbers reflect a broader trend: philanthropy in the Southeast is not only increasing but also diversifying, offering nonprofits a prime opportunity to connect with new donors and sustain their missions.

Increase in Foundation Assets and Grants

In addition to individual giving, foundation-based philanthropy in the Southeast is experiencing substantial growth. As private wealth accumulates, so too do the assets of private foundations, resulting in increased grantmaking activity across the region. For instance, North Carolina and Georgia foundations have reported rises in grant volumes in recent years, particularly in areas like health, education, and community development. In 2021, North Carolina’s foundation assets increased by 8%, driving a higher volume of grants to local nonprofits.

Urban Migration and the Rise of Philanthropy

The following graph illustrates the rise in population, property values, and philanthropic giving from 2010 to 2020 in key states like Florida, Georgia, Virginia, North Carolina, and South Carolina. This trend presents a clear opportunity for nonprofit organizations to align their strategies with the shifting demographics and meet these new philanthropists where they are.

According to the U.S. Census Bureau, states like Florida, Georgia, and North Carolina saw increases in net migration of up to 10-14% from 2020 to 2022. This migration has fueled economic growth and expanded the donor pool.

New residents, many of whom bring strong philanthropic mindsets from their previous communities, present a unique opportunity for local nonprofits. Interestingly, many newcomers seek to invest funding efforts in their new home states while maintaining ties to causes in their former communities. This duality is driven by a deep-seated connection to their roots and a genuine desire to contribute meaningfully to their new environment, often seeking roles on nonprofit boards and leadership positions in local organizations. By acknowledging this dual commitment, nonprofits can cultivate relationships with donors who are eager to take on leadership roles and contribute locally.

The following emerging trends provide valuable insights to help shape an effective cultivation strategy for engaging new donors in your community.

North Carolina

Population and Economic Growth: The Research Triangle, which includes Raleigh, Durham, and Chapel Hill, has seen significant population growth, particularly among young professionals. From 2010 to 2020, the area’s population grew by over 20%, driven by the expansion of the tech industry and the presence of major companies like IBM, Cisco, and Google. This influx of professionals has bolstered the local economy, increased spending power, and sparked a growing interest in philanthropy. Many of these individuals are engaging with local causes, particularly in education, health, arts, and community development.

Virginia

High-Net-Worth Individuals: Northern Virginia, particularly areas like Arlington, Fairfax, and Loudoun counties, has seen a rise in high-net-worth individuals, driven in part by its proximity to Washington, D.C. This region is home to numerous executives, government contractors, and tech entrepreneurs, contributing to a wealth boom. These individuals have shown a growing interest in philanthropy, with a focus on education, healthcare, and social justice. The presence of numerous foundations and donor-advised funds in Northern Virginia further supports this trend.

Tech Industry Influence: The tech sector’s expansion in Northern Virginia, including Amazon’s HQ2 development in Arlington, has attracted high-earning professionals. This influx has boosted local philanthropy, as both individuals and companies invest in the region’s social and economic well-being.

South Carolina

Population Growth and Economic Development: South Carolina has experienced rapid population growth, particularly in cities like Charleston, Greenville, and the suburbs around Columbia. From 2010 to 2020, the state’s population grew by approximately 10.7%, driven by an influx of retirees and young professionals. The state’s economic development, boosted by the manufacturing sector with companies like BMW, Boeing, and Volvo establishing operations, has attracted highly skilled workers and professionals who are increasingly engaging in local philanthropy.

Wealthy Retirees: South Carolina is a popular destination for wealthy retirees, especially in coastal areas such as Hilton Head, Myrtle Beach, and the Lowcountry. These retirees, many of whom have substantial wealth, are eager to invest in local causes, particularly those related to healthcare, education, and the environment. Their contributions have significantly bolstered the state’s philanthropic activity.

Georgia

Atlanta’s Economic and Population Growth: Atlanta has experienced robust population growth, with the metro area expanding by over 15% from 2010 to 2020. This growth is fueled by Atlanta’s position as a major business hub, attracting young professionals, entrepreneurs, and high-net-worth individuals. The city’s expanding tech sector has drawn a younger, affluent population with a growing interest in philanthropy. Atlanta is home to numerous Fortune 500 companies, and the city’s business leaders have a long tradition of philanthropic giving. The arrival of tech companies and startups has further energized philanthropy, with a focus on social justice, education, and community development.

Retiree Influence: Like South Carolina, Georgia—especially in areas like Savannah and the coastal region—has become a popular destination for wealthy retirees. These retirees are highly engaged in local philanthropy, contributing to causes focused on arts, culture, and historical preservation, enhancing the state’s philanthropic landscape.

Florida

Population Growth and Economic Development: Florida has seen substantial population growth, particularly in cities like Miami, Orlando, Tampa, and Jacksonville. From 2010 to 2020, the state’s population grew by 14.6%, making it one of the fastest-growing states in the U.S. In 2021, approximately 1,000 people per day moved to Florida, reinforcing its status as a top philanthropic state. The state’s strong economy—driven by tourism, healthcare, and a growing tech sector—has attracted a diverse population, including young professionals who are increasingly engaging with local causes.

Wealthy Retirees: Florida remains a top destination for wealthy retirees, particularly in areas like Palm Beach, Naples, and Sarasota. This demographic is highly philanthropic, contributing to local arts, education, healthcare, and environmental causes. The presence of affluent retirees has significantly bolstered Florida’s philanthropic landscape, with many establishing foundations or donor-advised funds to support local initiatives.

High-Net-Worth Individuals: Florida has seen a rise in the number of HNWIs, especially in cities like Miami and Naples, where real estate values and luxury markets have surged, has further driven philanthropic activity. These individuals are focused on supporting education, healthcare, and social services, with private foundations and major gifts playing a key role in the state’s growing philanthropy.

Impact of Tech and Finance Sectors: The expansion of the tech and finance sectors in cities like Miami has attracted a new wave of young, affluent professionals. Miami, in particular, has become a hub for tech startups and cryptocurrency, bringing in investors and entrepreneurs who are increasingly active in local philanthropy. This trend has led to a diversification of the types of causes supported, including innovation in education, economic empowerment, and social justice.

Future Outlook on Fundraising in the Southeastern U.S.

The philanthropic landscape in the Southeast is rapidly evolving with an influx of philanthropic individuals, offering nonprofits a great opportunity to grow their impact by connecting with these new donors and helping them achieve their philanthropic goals. To benefit from these trends, innovation and strategic adaptation will be essential.

Here are six actionable strategies for nonprofits in the region to respond to these migration trends and cultivate relationships with new donors:

Analyze zip code data to identify high-growth areas and top donors.

Leverage connections by asking existing donors for introductions to new residents.

Host welcome events to engage newcomers and introduce them to local causes.

Use direct mail to target revitalized neighborhoods with tailored messaging.

Employ geotracking for targeted digital ad campaigns aimed at high-potential areas.

Utilize AI-powered platforms like FundraiseUP to personalize online asks and increase engagement.

The key takeaway: nonprofits must remain agile and responsive to demographic shifts, positioning themselves to meet donors (literally) where they are, both geographically and strategically. By adapting to these trends, organizations can ensure they not only sustain but also expand their impact in the evolving philanthropic landscape of the Southeast.

Orr Group brings a business mindset and an innovative approach to help our nonprofit partners expand their impact at the local, national, and global levels. Contact us today to learn more about how we can help you reach new heights with your fundraising.

Piper Hardin, CFRE is a Vice President at Orr Group. Specializing in capital campaign assessments & strategic planning, frontline fundraising, board development, and team leadership, Piper brings over two decades of professional development experience to the table.