Evolving Fundraising: 9 Takeaways from the 2023 Philanthropic Landscape Report

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November 15, 2023 | 4 min read By:

Keeping up with industry trends is essential to success. The 2023 Philanthropic Landscape Report from CCS Fundraising analyzes the current state of U.S. philanthropy to shed light on the evolving fundraising landscape. We pulled some of our favorite takeaways to help nonprofits looking to expand their donor base, manage donations, and achieve their mission. 

 

Read on for nine key takeaways from the 2023 Philanthropic Landscape Report.

 

  1. GIVING IS GROWING. When comparing giving data from 2022 to 2021, U.S. charitable giving increased by 3%, totaling $499.33 billion in donations. This shows that despite a challenging economy, the nonprofit sector continues to attract support and drive ongoing impact in communities.
  2. DAF EXPANSION. Donor-advised fund (DAF) grants grew to $11.2 billion–a 9% increase from 2021. This further showcases that workplace giving platforms, like NPOconnect and planning for charitable giving, are alive and well for donors.
  3. EVOLVING AUDIENCES. Giving from Generation Z and Millennials increased in 2022, so nonprofits should tailor their fundraising strategies to reach this audience. To reach this growing group of donors, nonprofits should utilize multiple communication platforms and leverage this audience’s passion for advocacy in their outreach efforts.
  4. DIGITAL DECLINE. Online giving saw a slight decline of 4% but remains the preferred giving method, especially for Generation Z and Millennials, so it’s important to optimize online donation platforms and ensure a seamless user experience. The drop is likely a result of donor behaviors returning to pre-pandemic patterns.
  5. ENGAGING AI. Emerging AI technologies offer data-driven solutions for nonprofits to engage with donors and enhance fundraising efforts. By leveraging AI-powered tools, nonprofits can gain valuable insights into donor behavior, preferences, and giving patterns to tailor their fundraising strategies, target specific donor segments, and maximize the impact of their campaigns.
  6. INDIVIDUALLY STRONG. Individuals remain the largest source of philanthropic giving, granting 64% of all donations in the U.S., even as it leveled out in 2022 after two record fundraising years. While there were decreases in donation amounts and the number of donors in 2022, understanding the shifts in donor patterns, behaviors, and motivators can help nonprofits maximize individual giving and inspire donors at every level.
  7. ACQUISITION ADVICE. Acquiring and retaining donors were cited as the top two challenges for nonprofits. To address these challenges, nonprofits should leverage targeted communications using all available channels. By tailoring messaging, leveraging multiple channels, and developing personalized retention strategies, nonprofits can effectively engage donors to encourage donations and ongoing support.
  8. BUSINESS BENEFITS. In 2022, corporate giving increased by 3.4%, granting $29.48 billion to nonprofits. By building strategic partnerships with businesses and signing up for workplace giving platforms, like NPOconnect, nonprofits can tap into additional resources, funding, and expertise from companies whose values align with your nonprofit’s mission. Read more about the importance of workplace giving for fundraisers on our blog.
  9. COMMUNITY CONSIDERATIONS. Companies have begun emphasizing shared values and mission-driven community engagement. This approach recognizes the power of collaboration between businesses and nonprofits to create positive change in their community. Corporations are now investing in community impact initiatives that make a difference and resonate with their employees and consumers.

     

The 2023 Philanthropic Landscape Report offers valuable insights into the evolving fundraising landscape for nonprofits. By staying informed and adaptable, fundraisers can expand their donor base, manage donations effectively, and deliver on their mission.

 

One way nonprofits can attract new and ongoing support is by utilizing the free tools available on NPOconnect. For more information or to sign up, visit https://nonprofit.yourcause.com/login/create-account. 

 

To learn more about The Blackbaud Giving Fund, visit blackbaudgivingfund.org, or follow the organization on LinkedIn, Facebook, and Instagram for updates, news, and more.