It was in 2018 that a concerning trend caught the attention of the Giving Institute and the Giving USA Foundation: while total giving was increasing, fewer households were participating in charitable giving. This decline in participation was especially pronounced in volunteering. To better understand this shift, The Generosity Commission was established in 2021 by the Giving Institute and Giving USA Foundation to explore the causes of this decline and provide recommendations to reverse this trend.

After three years of research, The Generosity Commission has released its final report, which includes nine key recommendations for fostering generosity in the coming years. These recommendations highlight how giving patterns are shifting and provide actionable steps for nonprofits and ministries to encourage broader participation.

#1:  Increase the depth and breadth of data on giving and volunteering

#2: Close the generosity evidence-to-practice gap

Culture Recommendations

#3: Recognize the value of “influential” donor testimonials:  Encourage public figures and leaders in a broad range of fields to speak openly about how they give and volunteer, and how they have benefited from others’ giving and volunteering

#4: Know who your listeners are and who the next donors will be. Take youth seriously as givers and volunteers.

Practice Recommendations

#5: Show proof of your donors impact making change possible in their communities and around the world 

#6: Support community foundations to take a leading role in encouraging giving and volunteering

#7: Reinforce the leading role of businesses, as convenors of employees to encourage their volunteerism and giving

Policy Recommendations

#8: Increase the availability of the charitable contribution tax deduction

#9: Sufficiently fund the IRS Exempt organizations division and state charity regulators and simplify regulatory compliance

One key factor shaping these trends, as discussed in a recent episode of the Cause+Effect podcast, is the macroeconomic environment. Despite rising total donations, inflation and economic uncertainty have made many donors more cautious, reducing the number of people actively participating in philanthropy. The episode emphasizes how nonprofits can adjust their strategies to address this shift by focusing on relationship-building and demonstrating tangible impact.

As we move forward, it’s crucial for organizations to adapt to the changing economic and cultural dynamics and tap into the evolving preferences of today’s donors. I encourage you to download The Generosity Commission’s report to dive deeper into these findings and explore the strategic recommendations that can help ensure broader participation in philanthropy. It’s a valuable resource for any organization navigating this shifting landscape.

The post The Shifting Landscape of Generosity first appeared on CMB.

The post The Shifting Landscape of Generosity appeared first on CMB.

It’s a valid concern considering the aggressive fundraising efforts of candidates and political parties during an election cycle. But it’s a concern that doesn’t play out in reality.

First, let’s look at the data.

In two Dunham+Company studies conducted back in 2016 and again in 2020, we asked whether giving to political parties, candidates or PACs would reduce how much donors give elsewhere. In both studies, donors made it clear that this is highly unlikely.

For example, in 2016 this question scored a mean of just 1.9 on a scale of 1-5, with 1 being “Completely Disagree” and 5 being “Completely Agree”. So a score of 1.9 means donors are very unlikely to reduce their giving to organizations they normally support because of giving to a candidate, party or PAC.

In 2020 we asked the same question and in this survey the question scored a mean of 2.3. So again, donors say it’s pretty unlikely they would reduce their giving.

Digging a bit deeper into the data from both studies it’s needs to be noted that the Boomer cohort of donors made it clear that political giving wouldn’t negatively impact giving elsewhere as their mean in 2016 was only 1.8 and in 2020 just 1.9. Knowing this is the most important group of donors as their household giving is higher than Gen X and Millennials, this finding is very important.

Finally, in those same studies we also asked donors whether they would be giving less in the coming year and if so why. One possible response for giving less was, “The upcoming presidential election.” In 2016, 0%(not a typo) of donors cited that as a reason they would give less in the coming year. And in 2020 just 2% said this would be the reason. It’s clear that presidential elections are not a reason donors give less.

Second, let’s look at history.

As I look back at my experience through many presidential campaigns there has never been an instance where the organizations I served saw a drop in income as a result of the elections. My hunch is that political giving is a one-off exercise for those who donate to political campaigns and thus not replacing their philanthropic support of the charities they normally support.

In addition, based on a study by lendingtree, the older the demographic the less likely they are to support political campaigns (just 14% of Boomers compared to 43% of Gen Z and 33% of Millennials). Knowing that the most important giving demographic is the Boomer generation, it continues to make sense that the election cycle shouldn’t negatively impact the ongoing support of charitable institutions.

So, will the upcoming presidential election cause donors to give less to your organization? Based on the data and history, I think we can confidently say it’s extremely unlikely.

With this in mind, there is one important thing to note, however. It is imperative to understand that every presidential election can become a distraction to your donors as the volume of communication intensifies the closer you get to election day. So it’s vital to ensure that you are staying in front of your donors throughout the election cycle, continuing to give them reason to support you.

The point being, your donors may not give less to you because of their support of a candidate, party or PAC, but they could decrease giving if you’re not staying in front of them with the continued rationale as to why their support matters. So keep up the cadence of communication throughout the fall and make sure your case for support is as strong as ever.

The post Will The Upcoming Presidential Election Impact Giving? first appeared on CMB.

The post Will The Upcoming Presidential Election Impact Giving? appeared first on CMB.

Here’s a sneak peek:

• Listening Trends: Our study reveals shifts in listening habits since 2021, including a decline in those exclusively listening to Christian music radio and an increase in those tuning into Christian teaching and talk. 
• Donor Demographics: P1 donors, who represent the most dedicated segment of listeners, differ from the general audience. P1s are politically more conservative, more highly educated, and their household income skews higher.
• Motivations to Give: P1 donors support their stations with reasons ranging from spiritual growth to believing in the station’s mission.
• Challenges and Opportunities: Despite economic challenges, P1 donors show resilience and optimism, with a majority planning to maintain or increase their support in the coming year.

The insights from this study will help you navigate the evolving landscape of Christian radio and donor engagement. Click here for more details from this study and enrich your strategies to connect more meaningfully with those who support your mission.

The post Insights into Christian Radio P1 Donors + Their Impact first appeared on CMB.

The post Insights into Christian Radio P1 Donors + Their Impact appeared first on CMB.

• What are the economic forces diminishing donor generosity this year? 
  • Inflation and personal financial situations.
  • Households are also choosing to give to fewer organizations on average. 
• How can you best navigate the generational divide in philanthropy and economic uncertainty? 
  • If your organization is experiencing challenges around fundraising, you are not alone.  Millennial donors are most likely to hold back on giving this year but amongst overall donors there is stronger intent to give this year than last year.
  • Communication from direct mail is still highly effective – but you are more likely to see response online. More donors are giving via their mobile devices. Ultimately, a multi-channel approach is still the recommended strategy for reaching donors across generations.
• Is there a spark of hope? 
  • Absolutely!  There is a resilient rebound in donor optimism compared to last year.

We’ve got answers. Listen now! 

P.S. If you missed the release, you can get your copy of the research here.

The post Donor Confidence Shows Resilience in the Face of Economic Headwinds first appeared on CMB.

The post Donor Confidence Shows Resilience in the Face of Economic Headwinds appeared first on CMB.

•  Understanding Generations: We explore generational differences, highlighting Millennials’ cautious yet hopeful approach contrasted against the Boomers’ enduring commitment to giving.
• Economic Realities: This study unpacks how personal finances, broader economic trends, and the pinch of inflation are intricately woven into the fabric of our giving habits.
• A Spark of Optimism: Despite the hurdles, there’s a tangible sense of hope among donors, many of whom are looking to either sustain or ramp up their personal giving in the coming year.

Step forward with confidence and let these findings enrich your strategies and deepen your connections with those who support your mission. Click here for a deeper dive.

The post Giving in 2024: Enrich Your Strategies + Connect With Your Donors first appeared on CMB.

The post Giving in 2024: Enrich Your Strategies + Connect With Your Donors appeared first on CMB.

So how do you help these donors consider a gift out of an asset rather than cash at year-end? Here are two ideas to consider communicating to your donors.

First, if a donor has held an appreciated asset for at least one year, they can give that asset and gain a significant tax advantage. By donating the asset directly to a charity (rather than selling it and giving the proceeds to the charity), the donor bypasses the capital gains tax and receives the full fair market value as a tax deduction.

While publicly traded stock is the most common form of a noncash gift, other assets can also include:

• Restricted stock
• Bonds
• Real estate
• Privately held business interests

Second, if a donor is 70 ½ or older they can make a Qualified Charitable Distribution from their IRA directly to a qualified charity. And because it is a contribution, it is not counted as income to the donor, meaning they bypass tax on that distribution. Even better, if a donor is 72, such a distribution counts against their Required Minimum Distribution for the year.

These are just two year-end non cash giving options. To consider even more options and ways to communicate with your donors, you may want to check out the Sharpe Group materials.

Now is the time to begin communicating these options to your donors. Consider an insert in your receipt mail, a column in your newsletter, or even a series of emails highlighting these opportunities. Many donors don’t realize they can support your cause through these means, so make sure they know!

If you have questions about the disposition of such gifts, please feel free to reach out to our good friend, Dan Skerbitz who is a partner at the CPA firm Carr, Riggs & Ingram. You can email him at dskerbitz@cricpa.com.

The post Are You Prepared to Receive Non-cash Gifts? first appeared on CMB.

The post Are You Prepared to Receive Non-cash Gifts? appeared first on CMB.

What we discovered was fascinating on many levels. For example, the millennial generation of donors is quickly emerging as a force in philanthropy. 

As you can see from the accompanying chart, millennial donors have significantly increased their giving from 2016 to 2022. They have now surpassed Gen X in average household giving by $103 per annum (eight percent), having increased their annual giving by $381 or 40 percent and Gen X has decreased by four percent to $1,220.

In addition, millennials are highly engaged in their faith, being the most likely generation to attend worship services both in person and virtually.

In addition, direct mail and text are both becoming an increasing influence on donors’ giving. In fact, millennials are emerging as the generation that prefers receiving direct mail and is most likely to respond to both direct mail and text from the charities they support.

Finally, the smartphone has become nearly ubiquitous among all generations of donors and is increasingly used to make charitable contributions.

Seeing these shifts in generational giving, here are a few takeaways:

1. Understand that millennial donors are significantly committed to their faith and should be engaged through more robust communications.
2. Double down on multi-channel communication knowing that traditional channels are still strong and desirable, but text is growing as a preferred medium for communication. ​
3. Mobile-Optimize!
4. Online giving is becoming the preferred way for donors to give so ensure a great user experience.

To access the full report, CLICK HERE.

The post The Shifts in Generational Giving first appeared on CMB.

The post The Shifts in Generational Giving appeared first on CMB.

In an effort to better understand Millennials, Dunham+Company embarked on a donor study in 2016 to look at donor behavior among generations in the US, UK and Australia. In 2022, we decided it was time to revisit with up-to-date data that speaks to generational differences, commitment to giving, and church attendance. Here are just a few key takeaways emerging from the study:

1. Make giving through your website easily accessible.
2. Mobile giving should remain a top priority.
3. Multichannel communication is more important than ever, regardless of your generation.

View the Full Article

The post Generational Giving Research: Think Mobile First first appeared on CMB.

The post Generational Giving Research: Think Mobile First appeared first on CMB.

 https://www.dunhamandcompany.com/leadership/do-you-really-listen?utm_campaign=2212&utm_source=cmb&utm_medium=email

The post Do You Really Listen? first appeared on CMB.

The post Do You Really Listen? appeared first on CMB.