Philanthropy In 2024 And Beyond: Trends, Transitions, And Transformations

Created By: CJ Orr
September 25, 2023

Our firm works with dozens of nonprofit organizations at any given time, and one of the most common questions I receive in my role is: What are the trends? As we transition into the fall season and begin shifting our focus toward the upcoming year, I gathered insights from several of my colleagues to compile what we consider to be the defining trends poised to shape 2024.

As the philanthropic landscape continues to evolve, it’s shaped by an intricate mix of socioeconomic factors, technological advancements, and generational shifts. As we approach 2024, nonprofit executives should acknowledge and attune themselves to the trends influencing fundraising strategies and donor engagement.

Join us on a deep dive into the anticipated fundraising trends for 2024 and beyond as we explore their implications for the nonprofit sector.

1. The Bounce-Back Effect: Reversing the Giving Decline

In 2022, the Giving USA report reported a significant 10.4% decrease in charitable giving when adjusted for inflation. While that dip is concerning, 2023 has shown signs of recovery and we’re projecting an increase of 5-6% overall giving. Should the economy maintain its upward trajectory, 2024 will likely see further growth in charitable contributions.

2. The Political Pulse: Election Year Giving in 2024

With 2024 looming as a charged election year, political and voting rights organizations are poised to witness a spike in donations. Historically, election years have galvanized donors, and given the current heightened political climate, this trend is set to intensify.

3. Embracing Inclusivity: Diversity in Leadership and Donors

The call for diverse board leadership and donor representation has been a high priority for many organizations over the past few years. The demand for inclusivity will remain a priority and cornerstone for organizations seeking to diversify their donor base and have a more profound impact.

4. The Rise of Donor-Advised Funds

Donor-advised funds (DAFs) are becoming a preferred giving vehicle for many donors as they offer flexibility, tax benefits, and the allure of strategic philanthropy. Their popularity is only expected to grow, making them a crucial consideration for nonprofits seeking diversified funding sources.

5. The Great Wealth Transfer & Planned Giving

The baby boomer generation is amid a monumental wealth transfer to younger generations. This presents a golden opportunity for nonprofits to unlock the potential of planned giving and blended giving strategies, ensuring long-term financial stability and enduring donor engagement.

6. The Power of Campaigns

With their targeted approach and compelling narratives, campaigns have always been one of the most powerful tools in a fundraiser’s toolkit. As the economy strengthens and wealth is transferred between generations, campaigns will be more pivotal in rallying support and driving donations.

7. Generational Leadership Shift

The torch of board leadership is passing from older generations to their successors. This transition brings fresh perspectives, innovative strategies, and a renewed commitment to the organization’s mission. The board will need next-generation prospects on the bench as succession occurs at the board level.

8. AI: Fundraising’s Silent Revolution

Artificial Intelligence (AI) is no longer a futuristic concept but a present-day reality. In fundraising, AI promises enhanced productivity, data-driven strategies, and personalized donor engagement. Organizations that harness the power of AI will undoubtedly be a step ahead in their fundraising endeavors.

9. The Widening Gap: Disparities in Giving

The traditional 80/20 rule, where 80% of donations come from 20% of donors, is shifting towards a 90/10 divide. This growing disparity underscores the importance of nurturing major donors while cultivating a broader donor base. It is the key to ensuring sustainability and balance in philanthropic ecosystems.

10. The Dominance of Individual Giving

The Giving USA report highlighted that 64% of all donations came from individuals. This trend is set to persist, with major gifts offering the highest Return on Investment (ROI). For nonprofits, this means prioritizing individual donor relationships and crafting tailored strategies to nurture major gifts.

In conclusion, the fundraising landscape of 2024 presents both challenges and opportunities. Nonprofit executives must be agile, forward-thinking, and adaptive to harness these evolving trends effectively. By understanding these shifts and formulating strategic responses, organizations can meet their fundraising goals and amplify their transformative impact within the communities they serve.

Orr Group’s unique approach involves applying a business mindset and understanding of current and anticipated philanthropy trends to design successful and sustainable fundraising strategies. Get in touch with us today to learn how we can help you raise more money effectively.

CJ Orr is President and Partner of Orr Group. As an expert project and relationship manager with 10+ years of experience in the sector, CJ utilizes data, technology, and financially-backed trends to execute on the development of strategies and tactics to drive effective fundraising plans that meet or exceed targets.