Charitable giving in the first half of 2020 increased by almost 7.5 percent over the first half of 2019. That marks a big shift from the first quarter of this year, when giving was 6 percent behind the same period in 2019. The second quarter also marked a five-year high in the number of donors and contributions.
The results are from the Fundraising Effectiveness Project, which is managed by the Association of Fundraising Professionals in collaboration with GivingTuesday and analyzes donation data from the Growth in Giving Database.
While donors at all levels have stepped up in a big way during the pandemic, those who gave less than $250 were a major driver of growth. The number of small donations increased 19.2 percent over the first six months of last year. That may be due in part to the $300 universal charitable deduction that was enacted as part of the Cares Act.
“The significant increase in gifts under $250 shows many donors have been moved to give even amid the pandemic and resulting economic uncertainty,” Elizabeth Boris, chair of the Growth in Giving Steering Committee, said in a news release.
The number of midlevel donors, who made gifts of $250 to $999, and major donors, who made gifts of $1,000 or more, increased year-over-year by 8.1 percent and 6.4 percent, respectively.
The overall number of donors increased by 7.2 percent over 2019, with new donors increasing by 12.6 percent.
“Fundraisers should be cautious about getting too excited about the uptick in giving in the second quarter,” said Lori Hunter Overmyer, chair of the AFP Research Council. Giving almost always decreases in the first quarter, and the continued need for nonprofits services, along with the sluggish economy, “could potentially depress giving over the long-term,” she said.
“One of the most important things charities can do now is to build strong relationships with their supporters and encourage existing donors to continue to give when they can,” Overmyer said.
The data also tracks donor retention, which increased 1.8 percent over all. Despite a sharp decline in the number of new 2019 donors retained in 2020, the number of repeat donors retained or recaptured from previous years increased sharply in the second quarter.
But whether those donors will stick around remains a question.
“The continued impact of the pandemic on the economy could prevent the giving growth from continuing, especially if Congress doesn’t approve another Covid-19 relief bill and people become more worried about their financial situation,” Boris said.
It remains to be seen whether donors will keep giving at high levels in the third and fourth quarters, she said.
“It’s good to see gifts by mid- and higher-level donors increase in the second quarter, and hopefully that trend will continue into the latter stage of the year,” Boris said. “The stock market also remains relatively strong, which often portends strong giving at the end of the year.”
