Latest / The Nonprofit Podcast / Ep 215| Giving USA 2026 - The Fundraiser's Breakdown
Transcript
- 0:00SPEAKER_02: $617 billion.
- 0:03SPEAKER_02: That's how much Americans gave to charity in 2025.
- 0:07SPEAKER_02: And that's a new record.
- 0:09SPEAKER_02: That's a real inflation beating increase.
- 0:12SPEAKER_02: And honestly, there's a lot in this year's Giving USA report to feel good about.
- 0:17SPEAKER_02: But there's also something underneath those numbers that every fundraiser needs to understand.
- 0:22SPEAKER_02: Because the headline is good news and the fine print is a warning.
- 0:27SPEAKER_02: And today we're going to walk you through both.
- 0:30SPEAKER_02: The Nonprofit Podcast, powered by DonorBox.
- 0:34SPEAKER_02: Welcome to the Nonprofit Podcast.
- 0:36SPEAKER_02: I'm Jenna Lynch, Head of Community Engagement here at DonorBox.
- 0:40SPEAKER_02: Each week we bring you practical strategies, clear insights, and inspiration to help you raise more, reach further, and take your nonprofit to the next level.
- 0:49SPEAKER_01: And I'm Brit, fundraiser coach with DonorBox.
- 0:52SPEAKER_01: Today we are going to be talking about something we've been waiting for.
- 0:56SPEAKER_01: We are such data nerds here on the show, but we're going to be breaking down the Giving USA 2026 report in plain language with real takeaways that y'all can actually use.
- 1:07SPEAKER_02: We are data nerds, aren't we?
- 1:09SPEAKER_02: And if you've been listening for a while, you might remember that about two years ago, back in episode 117, we did a deep dive on the great generational wealth transfer.
- 1:20SPEAKER_02: That 84 trillion shift that was coming, well, the 2026 data is starting to show us that it's not just coming anymore, it's on its way.
- 1:31SPEAKER_01: It sure is.
- 1:32SPEAKER_01: It's pretty much here and it's starting to make its presence felt.
- 1:36SPEAKER_01: And we're going to be talking about that.
- 1:37SPEAKER_01: But I think first, let's get into the good news because Jenna and I genuinely, we just want to share some.
- 1:43SPEAKER_01: Yes.
- 1:44SPEAKER_01: And there is good news.
- 1:45SPEAKER_01: Yes, and we love good news, right, Jenna?
- 1:47SPEAKER_01: So let's talk about it.
- 1:48SPEAKER_01: Giving USA publishes this report every single year.
- 1:52SPEAKER_01: It has been going on since 1956, making it the longest-running study of charitable giving in the country.
- 2:00SPEAKER_01: This year's headline, it is so important because Americans gave 617.2 billion to charity in 2025.
- 2:09SPEAKER_01: That is the first time, everyone, that we have crossed the 600 billion mark.
- 2:14SPEAKER_02: That is pretty major.
- 2:16SPEAKER_02: And just to be clear, it's so easy to dismiss this.
- 2:22SPEAKER_02: This isn't just a big number because of inflation.
- 2:25SPEAKER_02: When you strip inflation out, giving still grew by a whopping 3%.
- 2:31SPEAKER_02: So that is some real growth, y'all.
- 2:34SPEAKER_01: Right.
- 2:34SPEAKER_01: And I think what I found so interesting, Jenna, is giving grew across all four donor segments individuals, foundations, bequests, corporations, broad base.
- 2:45SPEAKER_01: And it's not just like one category that really felt this growth.
- 2:49SPEAKER_01: Something just happened where every segment felt it.
- 2:55SPEAKER_02: And sector-wise, five of the nine nonprofit categories hit all-time highs in 2025, even after adjusting for inflation.
- 3:06SPEAKER_02: So that's human services, education, health, arts and culture, environment, and animals.
- 3:13SPEAKER_02: They all had record years.
- 3:15SPEAKER_02: Yeah.
- 3:15SPEAKER_01: And I think that tells us something important where donors were generous, right?
- 3:20SPEAKER_01: We all know that demand was high.
- 3:22SPEAKER_01: We know that a lot of organizations were still dealing with increased need, all of the federal funding shifting, the cuts, but the sector showed up.
- 3:31SPEAKER_01: They responded.
- 3:33SPEAKER_01: They really did show up.
- 3:34SPEAKER_02: And the Chronicle of Philanthropy quoted Wendy McGrady, who chairs Giving USA, saying that the organizations that were effective at sharing their story saw their donors respond, which honestly is one of the most important sentences in the whole report, in my opinion, and for anyone listening right now, because I think that reminds us that while we can't control the economy, we can't control inflation, we can't control federal funding decisions, we can control how we clearly communicate our impact.
- 4:08SPEAKER_02: And that is something that we will continue to dig into as we head into the second half of our year and something that you've heard us talk a lot about on the podcast already.
- 4:17SPEAKER_01: Yeah.
- 4:18SPEAKER_01: And what I'm hearing, there's so much good news.
- 4:20SPEAKER_01: But here's where I like to be the contrarian, and I know you do too, Jenna, is we need to slow down a little bit and look underneath the surface because the way that the$617 billion is being generated, it's shifting in ways that matters for how you implement and how you're going to run your fundraising strategy.
- 4:41SPEAKER_01: Mm-hmm.
- 4:42SPEAKER_02: Yeah.
- 4:42SPEAKER_02: So here's something that doesn't make the headline, but really should.
- 4:47SPEAKER_02: When you dig into where that individual giving growth is coming from, a huge chunk of it is from what the report calls mega gifts, donations of 600 million or more.
- 5:00SPEAKER_02: So the numbers are being skewed by a very small group of people.
- 5:05SPEAKER_01: 600 million?
- 5:06SPEAKER_01: Oh my goodness, like Wowzers.
- 5:08SPEAKER_01: I'm thinking about when I was a fundraiser, where were they when I was pulling up that L Bent list and cold calling desperately for$50 renewals?
- 5:17SPEAKER_01: Oh my goodness.
- 5:17SPEAKER_02: Right.
- 5:18SPEAKER_02: Yeah, you don't see you don't see that big figure very often.
- 5:22SPEAKER_02: And in 2025, those mega gifts, which is a new term for me, by the way, mega gifts totaled about 19 billion just from individuals.
- 5:33SPEAKER_02: Uh McKenzie Scott alone gave 6.65 billion.
- 5:37SPEAKER_02: Michael Bloomberg gave 4.3 billion, Bill Gates gave 3.7 billion, Paul Allen's estate contributed 3.1 billion through a bequest.
- 5:48SPEAKER_02: So these are some mega, mega millions.
- 5:52SPEAKER_01: And I'm hearing that when we say individual giving grew, what we really mean is that just five or six people are moving billions of those dollars.
- 6:00SPEAKER_01: What happens if we take them out?
- 6:02SPEAKER_01: What I imagine, Jenna, is the picture changes a lot, right?
- 6:06SPEAKER_01: What stands out to me right now in this economy is who's missing from this group of extremely wealthy people.
- 6:14SPEAKER_02: Yeah.
- 6:15SPEAKER_02: And this isn't new.
- 6:17SPEAKER_02: It's been a trend building for years.
- 6:19SPEAKER_02: Back in 1985, 80% of all charitable dollars came from individuals.
- 6:25SPEAKER_02: Today it's 64%.
- 6:27SPEAKER_02: So the share is shrinking because foundations and bequests are growing faster, but also because everyday donor participation is declining as well.
- 6:37SPEAKER_01: Yeah, and it's something that I talk to with my coaching clients a lot, where yes, the aggregate numbers they look healthy, right?
- 6:45SPEAKER_01: While your mid-level donor base is quietly eroding, but the growth is concentrated at the top.
- 6:51SPEAKER_01: And what that means is your revenue is increasingly tied to the decisions and the stock portfolios of a very small number of people.
- 7:00SPEAKER_02: Yeah.
- 7:00SPEAKER_02: And something I found interesting too, as we were digging into the Sprit, Indiana University's lead researcher on the report actually flagged this directly.
- 7:11SPEAKER_02: He said the market has become a larger and larger predictor of giving, and that the growing reliance on major donors means that market volatility is going to start bleeding into giving volatility.
- 7:26SPEAKER_01: Ooh, that is such a great point.
- 7:28SPEAKER_01: I never thought of Jenna.
- 7:29SPEAKER_01: What I'm hearing from this is that is a polite way of saying if the S P 500 tanks, charitable revenue could take a serious hit too, right?
- 7:39SPEAKER_01: And because giving is more concentrated than it used to be, that hit could be sharper than it would have been, say, like 20 years ago.
- 7:47SPEAKER_01: Yeah, I think that's pretty spot on.
- 7:50SPEAKER_01: Well, let's talk about the foundation grant, Clift.
- 7:53SPEAKER_01: One thing that caught my eye in the report, and I think a lot of nonprofits may have missed this, is one of the nine recipient categories actually declined last year.
- 8:03SPEAKER_01: Giving to foundations, meaning money going into foundations dropped 16.2%.
- 8:10SPEAKER_01: Okay.
- 8:11SPEAKER_02: I'm confused by this one because based on the reporting, we also said foundation giving grew 5.7%.
- 8:20SPEAKER_02: So um which one is it?
- 8:22SPEAKER_01: Yeah, yeah.
- 8:23SPEAKER_01: Totally understandable, Jenna.
- 8:25SPEAKER_01: This is tricky because here's the thing: both are true and they're measuring completely different things.
- 8:31SPEAKER_01: When Giving USA says that foundation giving grew, that is foundations paying grants out to nonprofits.
- 8:39SPEAKER_01: Okay, that's the increase paying grants out to nonprofits.
- 8:43SPEAKER_01: But when they say that giving to foundations dropped, that's donors putting money into foundations, the inflows.
- 8:51SPEAKER_01: Okay, so the pipeline is refilling more slowly.
- 8:55SPEAKER_01: Precisely.
- 8:56SPEAKER_01: And I think why that matters is there's typically a 12 to 24 month lag between the money going into a foundation and the grants being doled out, right?
- 9:06SPEAKER_01: So a 16% drop in foundation inflows in 2025 is a very loud warning signal for 2026 and 2027 grant budgets.
- 9:15SPEAKER_01: It's gonna be a massive impact.
- 9:17SPEAKER_02: So what you're saying is if a big portion of your revenue comes from grants, now is probably the time to start investing in other fundraising channels too.
- 9:28SPEAKER_02: Not after the grants start drying up.
- 9:31SPEAKER_01: Completely spot on.
- 9:32SPEAKER_01: And the nonprofits that are gonna feel this the least are gonna be the organizations that already have strong direct donor relationships because, hey, those are more resilient, they're more diversified, and frankly, they're gonna be more under your control.
- 9:47SPEAKER_01: Yeah.
- 9:48SPEAKER_02: So next, I want to talk about declining individual giving.
- 9:53SPEAKER_02: I think this is a slow moving trend, which almost makes it more dangerous because it can be easy to miss.
- 10:01SPEAKER_02: It can be very sneaky, right?
- 10:03SPEAKER_02: Individual giving as a percentage of disposable personal income has been declining for decades.
- 10:09SPEAKER_02: We know this.
- 10:10SPEAKER_02: Uh, it's now at a 40-year low.
- 10:14SPEAKER_02: So about 1.7% of disposable income, down from around 2.3% in the 1980s.
- 10:23SPEAKER_01: I absolutely love that we're talking about this, given that we teach so much on individual giving strategy.
- 10:29SPEAKER_01: So, yes, what this really means is donors out there, they have more money, but they're giving a smaller share of it to charity.
- 10:37SPEAKER_01: And the donors who are giving, well, we know fewer of them are being retained year after year.
- 10:43SPEAKER_02: Mm-hmm.
- 10:43SPEAKER_02: And so the the math is getting harder for organizations that rely on broad-based, high-volume individual fundraising, right?
- 10:52SPEAKER_02: And it's not impossible, but it's harder.
- 10:55SPEAKER_02: The donors you have are more valuable than ever, y'all.
- 10:59SPEAKER_02: Meaning retention has to be more strategic.
- 11:03SPEAKER_02: It has to be more of a priority and not an afterthought.
- 11:06SPEAKER_02: I know we talk a lot about this on the podcast as well.
- 11:09SPEAKER_02: And we actually really dug into this uh recently in episode 209 with Rob Harder.
- 11:16SPEAKER_02: He joined us to talk about donor trust and retention.
- 11:19SPEAKER_02: And one thing he said that really stuck with me is that donors don't stop giving because they stop caring, right?
- 11:25SPEAKER_02: Often the relationship just fades.
- 11:28SPEAKER_02: And I think that's something that can uh easily be fixed with just some thoughtful communications.
- 11:35SPEAKER_02: And then another one of our donor box ambassadors, Darren Cook, recently wrote a blog about staying close to your donors between asks.
- 11:44SPEAKER_02: So we'll link that article in the show notes as well.
- 11:47SPEAKER_02: So as you're thinking through this data and this giving USA report, use these resources to really help you.
- 11:54SPEAKER_02: That I think that's exactly what this data is telling us.
- 11:56SPEAKER_02: Even the Q4 2025 FEP report found that converting a first-time donor into a second-time donor remains one of the biggest challenges in fundraising.
- 12:07SPEAKER_02: So, what happens after that first gift really matters, right?
- 12:11SPEAKER_02: Thinking about your donation experience, if it's easy.
- 12:14SPEAKER_02: Does your donor get a meaningful thank you?
- 12:16SPEAKER_02: Are you staying in touch over those first few months?
- 12:19SPEAKER_02: Those are those simple things that can have a huge impact on whether someone gives once or sticks around for years and can really help with those percentages that we're seeing decline.
- 12:32SPEAKER_02: Okay, so we've laid out the warning signs, but uh I don't want this to be all doom and gloom.
- 12:38SPEAKER_02: Inside all of that, there is a genuinely enormous opportunity.
- 12:43SPEAKER_02: And I want to talk about it because this is where our episode from I think a couple years ago comes back in.
- 12:49SPEAKER_01: Uh, yes, the great wealth transfer.
- 12:51SPEAKER_01: You nailed it, Jenna.
- 12:52SPEAKER_01: Let's let's hear more about it.
- 12:54SPEAKER_02: Yeah, yeah.
- 12:55SPEAKER_02: Uh, and you and I have talked a lot about this too, Britt.
- 12:58SPEAKER_02: The generational wealth transfer.
- 13:01SPEAKER_02: This was episode 117 of the nonprofit podcast.
- 13:04SPEAKER_02: We talked about$84 trillion moving from baby boomers and the silent generation to younger generations and charities over the coming decades.
- 13:15SPEAKER_02: And uh back then, just a couple years ago, we talked about why nonprofits couldn't afford to wait until this transfer was fully underway before preparing for it.
- 13:23SPEAKER_02: They needed to get ahead of it.
- 13:25SPEAKER_02: And this new data that we're looking at is giving us the first real evidence that it has actually started.
- 13:33SPEAKER_02: So, what stands out to you about this, Britt?
- 13:36SPEAKER_01: Yeah, well, let's talk about bequest giving.
- 13:38SPEAKER_01: Money left to charities in Wills and Estates was up, I think it was close to 20%.
- 13:43SPEAKER_01: The precise number was 19.7 in 2025.
- 13:47SPEAKER_01: This is not some one-off anomaly, right?
- 13:50SPEAKER_01: This is the third time in four years that it's grown by the double digits.
- 13:54SPEAKER_01: And so I think there's a pattern to be called out here.
- 13:57SPEAKER_02: Yeah, yeah.
- 13:58SPEAKER_02: You know, uh Paul Allen's$3.1 billion bequest was a part of this, but it's also showing up at much more accessible levels.
- 14:08SPEAKER_02: Again, the Chronicle of Philanthropy reported on organizations like CARE, the international charity that invested in planned giving infrastructure and now are receiving multi-million dollar requests from donors who started out giving just small gifts over the decades.
- 14:23SPEAKER_02: So that's pretty incredible.
- 14:25SPEAKER_01: Yeah, and the and the point about small gifts is so important.
- 14:28SPEAKER_01: I think it breaks this uh misconception about who makes these types of gifts, right?
- 14:33SPEAKER_01: Nobody just wakes up and decides, well, I'm gonna leave a million dollars to a charity in my will.
- 14:38SPEAKER_01: No, they start off as a$50 donor.
- 14:42SPEAKER_01: And what we found from the Giving USA report, there's some math on this.
- 14:46SPEAKER_01: More than half of people who leave a bequest have been supporting that same nonprofit for over 20 years.
- 14:52SPEAKER_01: Think about that, right?
- 14:53SPEAKER_01: There's a relationship at play where your best legacy prospects, they're not going to be your random wealthy donors.
- 15:01SPEAKER_01: These are your loyal monthly donors who you've been able to retain for the long haul.
- 15:06SPEAKER_01: And so, yes, acquisition matters, but we really need to focus hard on donor retention today.
- 15:13SPEAKER_02: Yes, yes.
- 15:14SPEAKER_02: And if you haven't started a plan giving program yet, I want to gently push back on the idea that it's too complicated or too far away to matter.
- 15:25SPEAKER_02: You probably already have, as Britt said, potential legacy donors sitting in your database right now, folks who care deeply about your mission and have been supporting you for years and years, even if it has only been$50 a month.
- 15:38SPEAKER_02: They may just not have been invited into that conversation yet.
- 15:41SPEAKER_02: And they really are just waiting for you to ask them.
- 15:45SPEAKER_01: Right.
- 15:46SPEAKER_01: And in talking about that, Jenna, like who has been invited and in the conversation.
- 15:50SPEAKER_01: Well, the other piece of this is the giving channel, right?
- 15:54SPEAKER_01: The different payment preferences.
- 15:55SPEAKER_01: For me, what comes to mind, younger donors, right?
- 15:59SPEAKER_01: They're the inheritors of this great wealth transfer, and they're gonna be a different type of donor.
- 16:05SPEAKER_01: And by that I mean they give differently.
- 16:08SPEAKER_01: Think about it, they prefer mobile, they prefer digital wallets, Fenmo, PayPal.
- 16:13SPEAKER_01: They're not writing checks, right?
- 16:16SPEAKER_01: Um, all of the non-cash assets like stocks and crypto, this is our opportunity as nonprofits to make it accessible for them.
- 16:25SPEAKER_01: We don't want to make it harder than it really needs to be.
- 16:28SPEAKER_02: Yep.
- 16:29SPEAKER_02: Speaking as a millennial, you're speaking my heart, Brett.
- 16:32SPEAKER_02: Um making giving easy is not a nice to have anymore.
- 16:37SPEAKER_02: It is what donors expect, and especially these younger donors.
- 16:41SPEAKER_02: If someone can buy concert tickets, order dinner, or transfer money from their phone in a matter of seconds, they are bringing those same exact expectations with them when they support your nonprofit.
- 16:54SPEAKER_02: And that's why we're seeing more organizations focus on reducing friction and the giving experience.
- 16:59SPEAKER_02: You know, as you said, Britt, the mobile-friendly donation forms, digital wallets, stock giving, recurring giving options, the easier it is for someone to act on their generosity and give in a way that is meaningful to them and convenient to them, the more likely they are to complete that gift.
- 17:18SPEAKER_02: And of course, shameless plug here.
- 17:21SPEAKER_02: That's one of the reasons why I love donor boxes, omni give donation forms.
- 17:26SPEAKER_02: Donors don't think in channels, right?
- 17:28SPEAKER_02: They just want giving to be simple.
- 17:30SPEAKER_02: And the easier we make it for someone to act on their generosity, the better.
- 17:34SPEAKER_02: And these donation forms make that giving quick and easy, but they also help you customize your brand and really let it shine through the giving experience as well.
- 17:43SPEAKER_02: So it is memorable from the very first moment they land on your giving page to the very last moment that they complete the gift.
- 17:50SPEAKER_01: Spot on, Jenna, and I know you do this as we're both close peers here on the show.
- 17:55SPEAKER_01: I'm gonna ask you this time.
- 17:57SPEAKER_01: I love your hot take.
- 17:58SPEAKER_01: What's the biggest takeaway here from this report?
- 18:01SPEAKER_01: I'd love to know.
- 18:02SPEAKER_02: Yeah.
- 18:03SPEAKER_02: Um honestly, again, I think the headline is good news.
- 18:08SPEAKER_02: Given grew, donors showed up, even with inflation, you know, even with the uncertain economy, even with these funding challenges, Americans gave more than$617 billion to charity in 2025.
- 18:23SPEAKER_02: So, really, beyond all these little bits and bobs that may feel like doom and gloom or might be a slight caveat, I think the headline is really where it's at.
- 18:33SPEAKER_02: And this should be something that the sector feels good about.
- 18:36SPEAKER_01: For sure.
- 18:37SPEAKER_01: What I'm what I'm hearing, Jenna, is there is this sense of hope.
- 18:40SPEAKER_01: There's a lot of optimism and positivity in this.
- 18:43SPEAKER_01: And with that said, we also got to look underneath the headline too, right?
- 18:48SPEAKER_01: Giving is becoming more concentrated, fewer donors are driving more of that growth.
- 18:53SPEAKER_01: But hey, there is a real opportunity to broaden that base of individual giving so that we don't have to face these long-term pressures.
- 19:02SPEAKER_01: So all good stuff.
- 19:03SPEAKER_02: Yeah.
- 19:04SPEAKER_02: And I think that's what made this report so interesting to dig into.
- 19:08SPEAKER_02: The generosity is still there.
- 19:11SPEAKER_02: You know, people still want to support the causes they care about, but nonprofits may need to be more intentional about how they earn, keep, and grow that support over time.
- 19:22SPEAKER_02: And that's what we're seeing those numbers trending to.
- 19:24SPEAKER_01: For sure.
- 19:25SPEAKER_01: You know, I'm thinking about this organizations that are adapting to these changes, they're really just going to be in a much stronger position over the next decade.
- 19:34SPEAKER_02: Yeah.
- 19:34SPEAKER_02: And so if you're wondering what to do about all of this as you're listening, I'd actually keep it pretty simple.
- 19:41SPEAKER_02: If you do get your hands on the report and you're reading it and you're feeling a little overwhelmed or you're asking, so what?
- 19:48SPEAKER_02: I just want you to pause and just take a look at your donor journey and ask, how easy is it for someone to make a gift?
- 19:56SPEAKER_02: What happens after someone donates to my organization?
- 20:00SPEAKER_02: You know, how are you staying connected between your campaigns and your asks?
- 20:04SPEAKER_02: How are you engaging your donors?
- 20:07SPEAKER_02: Because a lot of those opportunities we talked about today absolutely start there.
- 20:13SPEAKER_01: The fundamentals, listeners, they still very much matter.
- 20:16SPEAKER_02: They do.
- 20:17SPEAKER_02: And uh we will never stop talking about this, me and you, Britt, right?
- 20:20SPEAKER_02: It's building trust, it's communicating impact, it's making giving easy, and just creating an experience that makes people want to stay involved.
- 20:29SPEAKER_02: None of these things are flashy, but they are exactly the right kinds of things that help organizations thrive in changing times.
- 20:36SPEAKER_01: Yeah.
- 20:37SPEAKER_01: And hey, if today's conversation and has you thinking about plan giving, bequest, this great wealth transfer that Jenna and I are talking about, go back.
- 20:46SPEAKER_01: We have a great episode, episode 117.
- 20:50SPEAKER_01: Jenna and I did a deep dive into that topic just a couple of years ago.
- 20:54SPEAKER_01: And a lot of those lessons, they're just so much more relevant today.
- 20:58SPEAKER_01: We're gonna drop that link in the show notes.
- 21:00SPEAKER_01: So don't you worry about that at all.
- 21:02SPEAKER_02: Yeah, we'll have a few goodies for you waiting in the show notes.
- 21:05SPEAKER_02: So go ahead and take a look.
- 21:06SPEAKER_02: And thanks, Britt.
- 21:07SPEAKER_02: I really appreciate it.
- 21:09SPEAKER_01: Thank you, Jenna.
- 21:10SPEAKER_01: It's great talking to you today.
- 21:12SPEAKER_02: And before we go, just a quick programming note for our listeners.
- 21:16SPEAKER_02: Throughout July 2026, we will be revisiting some of our favorite conversations from the archive.
- 21:23SPEAKER_02: While the team takes a short summer break, we'll be back in August with brand new episodes, and we already have some great conversations lined up that we cannot wait to share with you.
- 21:33SPEAKER_02: Thank you for being a part of the nonprofit podcast community.
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