A Wake-Up Call to Engage Donors
Americans gave $557 billion to charity in 2023. That’s the good news. The bad news is even though the total dollars given to charity is up, the number of donors giving is down. Even more troubling, Americans now give only 1.7% of their disposable incomes to charities, the lowest level of giving in the last four decades. Those were the findings in a new wake-up report by the Generosity Commission called The Shifting Landscape of American Generosity.1.
If the above statistics don’t alarm you, then consider these further findings in the study:
- 2023 giving declined by 2.1% after a decline in 2022 of 8.4%.
- Fewer Americans are involved in their community by volunteering and giving than ever in the last two decades.
- The share of U.S. households reporting that they had donated to a nonprofit organization dropped from 65% in 2008 to 49% by 2018. This was the first time it had been below 50%.
- The number of donors dropped by 3.4% in 2023 after having dropped by 10% in 2022 and by 5.7% in 2021.
This is but the tip of data that reveals that while charitable dollars are up, the number of donors and the percentage amount they give is declining. At the same time, volunteer hours are up, and the number of volunteers is down. Both facts are troubling for the future financial stability of churches. Yet one of the biggest concerns with the report lies in this finding, “More recently, researchers have linked the decline in charitable giving rates to the divergent beliefs, practices, and life experiences of younger age cohorts who are becoming a larger share of the giving population.” Here is a post we wrote about this: https://www.onlinegiving.org/support/attracting-the-next-generation-of-donors
There are many reasons for the decline in charitable giving. One major reason is the decline in American religious affiliation and participation in religious institutions. The report states that “Surveys from the Pew Research Center have shown that Americans who attend religious services weekly are more than 50% more likely to have given to charity in the last week than those who do not attend, while research from the Lilly Family School of Philanthropy has demonstrated that the average annual charitable contributions of Americans who claim religious affiliation are more than twice as large as those who do not.” As a result, “…the share of households that give to religious organizations or causes has fallen more steeply than the share of households giving to secular organizations, dropping from more than 46.5% in 2000 to 29% in 2018.”
None of the above is good news. However, there are nuggets of encouraging data that should serve as a guide to reversing these trends. For instance, the report found, “The frequency of people’s engagement with nonprofits as donors, volunteers, advocates, and constituents positively impacts their level of trust in the broader sector.” Those familiar with nonprofits were 39 points more likely to trust the sector than those unfamiliar with nonprofits. According to the 2024 report, 79% of Americans who volunteer say their experience made them view nonprofits more favorably.”
The Shifting Landscape of American Generosity is a wake-up call for the Church. For too long, we sat passively by, watching the yearly decline in giving. We must act now to reverse this trend. This is one major reason we at OnlineGiving.org do not consider ourselves as only a processing company. Our platform, tools, coaching, and support are all designed to help our church partners stay engaged with their donors. We believe that showing donors how your church works to change the world for good is the best way to encourage people to give. The generosity landscape of America has changed, and so must we.
Don’t be discouraged. Let me share with you one encouraging report from the study. They reported that “the desire to do good” is at a 50-year high among entering college students. Where else in the world is more good done than at your church dedicated to sharing THE Good News? We are committed to helping you share your church’s mission so donors will be motivated to serve and give to your church.
Contact us today to set up a free demonstration of how our platform can help you stay engaged with your donors at (615) 206-4000 or support@onlinegiving.org. It’s time to wake up and take action; we are here to help you!
Written by Mark Brooks
The Stewardship Coach
The following post is reprinted with permission at: https://www.onlinegiving.org/support/a-wake-up-call-to-engage-donors