With economic uncertainty pervasive as we approach the holiday giving season, many fundraisers are wondering what donors are thinking. Two recent surveys offer some clues as to what is on donors’ minds when it comes to giving.
“Why America Gives 2022,” a joint report by Classy and GoFundMe, asked 1,000 Americans who had given in the previous 12 months about their anticipated giving this season. It found that despite economic turmoil, 90 percent of respondents planned to give the same amount or more than last year.
Similarly, a Vanguard Charitable poll found that 60 percent of donors who have charitable giving in their budgets say inflation will have no impact on their contributions. Twenty-four percent say they gave more due to inflation. Over all, the poll showed 45 percent of Americans have a charitable giving budget, and 74 percent have donated to a charity in the past year.
A key theme running across both surveys is that people who have given before or set aside money for giving are going to be strong resources for charities to tap in year-end campaigns.
“There’s an abundance of opportunity, and people are more generous than ever,” says Michelle Boggs, a Classy adviser familiar with the report. “Given inflation, given what’s going on right now, I think the bright spot is that there’s an incredible amount of generosity happening and so much opportunity if organizations are able to meet donors where they are.”
“Why America Gives” found that loyal donors — those who had given three times or more to the same group in the past five years — are more than twice as likely to increase contributions in 2022, and they are expected to give four times as much as the average donor. Loyal donors are twice as likely to keep their contributions as is, even if they’re experiencing “a financial stressor.” Similarly, the Vanguard Charitable poll found that people who set aside money for donations gave four times more than those who did not.
Generational Giving Differences
As charities approach donors this giving season, Boggs suggests being cognizant of generational giving differences.
“Loyal donors sit in a lot of different demographics,” she says. “For example, with traditional [Generation X and baby boomers] loyal donors, you have to think about how often you touch base with them — not bombarding them with messaging. Maybe it’s less frequently, but you’re sharing much more in-depth: an impact report, an update on their giving and what it’s done for the nonprofit, or what’s ahead for the nonprofit.”
Next-generation donors (millennials and Gen Z), on the other hand, want more frequent communication on many channels, such as Instagram, YouTube, TikTok, and other social media. The report added that next-generation donors often give lower sums but give more than just money.
“They’re going to advocate for you,” Boggs says. “They’re going to fundraise on your behalf. They’re going to galvanize their networks around what you’re doing versus an older generation of donor might be more likely to attend a social event.”
Finally, both reports found that younger people (ages 18-44 in the Vanguard Charitable poll and next-generation givers in “Why America Gives”) were more likely to give more to charities in tough times than older people (ages 45-plus and traditional givers). Boggs suggests taking these generational differences into consideration when approaching year-end fundraising.
“Your fundraising strategy, your messaging, your communication, your touch points should all be geared around those generational differences and needs,” she says.
