Giving USA 2020 Report Observations
Recently, the Giving USA 2020 report was released. Giving USA, the longest-running and most comprehensive report on charitable giving of its kind in America, is published by Giving USA Foundation. It is researched and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. The report paints a picture of an uneven charitable giving landscape, with plenty of caution flags and opportunities for nonprofit leaders. A note of caution in reading the report since the country has experienced significant challenges in recent months. Key findings from the report include:
American individuals, bequests, foundations and corporations gave an estimated $449.64 billion to U.S. charities in 2019, placing it among the highest years ever for charitable giving
Total charitable giving rose 4.2% measured in current dollars (2.4% adjusted for inflation)
For only the second time since Giving USA data began to be published in 1955, individual contributions constituted less than 70% of charitable giving.
There is a clear trend downwards in total donors and greater disparity in gift size as the report shows $6.57 billion in mega-gifts (defined as $300 million and above). This trend has been referred to as “Dollars up and donors down.”
A few of my own thoughts and observations in reading the report:
The widening gap between "mega-gift" philanthropy and individual giving bears watching because of its potentially negative consequences for small-mid size nonprofits.
"Dollars up, donors down" is not a formula for success for the vast majority of nonprofits
Proposals for a universal charitable giving incentive are vital to engaging greater numbers of donors in philanthropy, particularly at the grassroots level and particularly for younger generations. Bonus Takeaway
Savvy nonprofits will pay close attention to the continued rise of Donor Advised Funds (DAFs) as philanthropy's fastest growing vehicle and invest time and resources in strategies to engage DAF sponsors and holders.
If your leadership team and/or Board would like to connect to discuss your fundraising effectiveness or explore our signature “Demystifying Donor Advised Funds” workshop, let’s connect!