Insights from the 2024 Giving USA Report: Key Trends for Fundraisers

The 2024 Giving USA report reveals significant insights into the current state of charitable giving in the United States. Understanding these trends can help fundraisers strategically align their efforts to maximize donations and impact. Here are the key takeaways from this year’s report, based on data collected in 2023.

Overall Charitable Giving

In 2023, total estimated charitable giving in the United States reached an impressive $557.16 billion. This marks a 1.9 percent growth in current dollars compared to 2022. However, when adjusted for inflation, total giving actually declined by 2.1 percent. This discrepancy highlights the ongoing impact of inflation on the charitable sector.

Giving by Source

Individuals

Individual giving remains the largest source of charitable donations, totaling an estimated $374.40 billion in 2023. This represents a 1.6 percent increase from 2022, though it translates to a 2.4 percent decline when adjusted for inflation. This underscores the importance of maintaining strong relationships with individual donors, even as their real contributions may be affected by economic factors.

Foundations

Foundation giving has shown remarkable resilience and growth. Giving by foundations grew by 1.7 percent in 2023, reaching $103.53 billion. Adjusted for inflation, this figure represents a 2.3 percent decline. Despite this, foundation giving continues to be a crucial and relatively stable source of funding for many organizations.

Bequests

Contributions from bequests saw a significant increase of 4.8 percent, totaling $42.68 billion in 2023. When adjusted for inflation, the growth is a modest 0.6 percent. This steady performance indicates the enduring value of legacy giving programs.

Corporations

Corporate giving rose by 3.0 percent in 2023, amounting to $36.55 billion. However, this translates into a 1.1 percent decline when adjusted for inflation. Corporate giving, including cash, in-kind contributions, and grants, remains a vital but variable funding source.

Giving by Recipient Subsector

Religious Organizations

Religious organizations have traditionally been the lead recipients of charitable giving. Contributions to religious organizations grew by 3.1 percent to $145.81 billion in 2023. Adjusted for inflation, this represents a slight decline of 1.0 percent. Religious organizations continue to receive the largest share of donations, but the inflation-adjusted decline suggests challenges in maintaining their donation levels.

Human Services

This subsector saw a 5.8 percent increase in giving, totaling $88.84 billion. After adjusting for inflation, the growth rate stands at 1.7 percent, highlighting the growing importance of human services in donor priorities.

Education

Donations to educational institutions experienced significant growth, with an 11.1 percent increase to $87.69 billion. Adjusted for inflation, this still represents a robust 6.7 percent increase, indicating strong donor interest in education. Giving to education has been particularly strong in the last five five-year periods, reflecting the sector’s growing importance.

Foundations

Foundations have received between 5 percent and 13 percent of total contributions over the last 40 years. Giving to foundations increased by 15.4 percent, totaling $80.03 billion. Even when adjusted for inflation, this represents a substantial 10.8 percent growth, underscoring the critical and expanding role of foundations in the philanthropic landscape.

Health

Giving to the health subsector has comprised between 6 percent and 10 percent of the total over the last four decades, reflecting steady support for health-related causes.

Contributions to health-related causes grew by 8.7 percent to $56.58 billion. However, when adjusted for inflation, this translates to a 4.4 percent decline, highlighting the pressures on healthcare funding amidst rising costs.

Public-Society Benefit

The public-society benefit subsector has received between 7 percent and 10 percent of total recipient giving over the last 40 years, with the highest level in the most recent five-year period beginning in 2019.

This subsector saw a 11.6 percent increase in giving, reaching $62.81 billion. After adjusting for inflation, the growth rate is 7.2 percent, indicating strong support for causes that benefit society at large.

International Affairs

Donations to international affairs grew by 2.5 percent to $29.94 billion in 2023. Adjusted for inflation, this represents a 1.6 percent decline, suggesting potential challenges in maintaining support for international causes amidst global economic uncertainties.

Arts, Culture, and Humanities

Giving to arts, culture, and humanities organizations has consistently totaled between 3 percent and 5 percent of all charitable dollars received by organizations over the last four decades, highlighting the steady, albeit smaller, stream of support for these causes.

This subsector saw an 11.0 percent increase in giving, totaling $25.26 billion. When adjusted for inflation, the growth stands at 6.6 percent, reflecting a renewed interest in supporting cultural and artistic endeavors.

Environmental and Animal Organizations

Since tracking began in 1987, giving to environmental and animal organizations has steadily risen. In the last four five-year periods, this subsector has comprised 3 percent of total giving, reflecting growing concern for environmental and animal welfare issues.

Contributions to these causes grew by 8.2 percent to $21.20 billion. Adjusted for inflation, this represents a 3.9 percent increase, indicating growing awareness and support for environmental and animal welfare issues.

Overview: Challenges and Opportunities

1. Acknowledge the Impact of Inflation: Economic conditions significantly impact charitable giving. The 2024 Giving USA report highlights the significant impact of inflation. While many subsectors experienced nominal growth, inflation-adjusted figures often show declines. Fundraisers must consider strategies to address this challenge, such as emphasizing the real value of donations and seeking cost efficiencies. Staying informed about economic trends can help fundraisers anticipate changes and adapt their strategies accordingly.
2. Diversify Funding Streams: The variability in growth rates across different sources and subsectors underscores the importance of diversifying funding streams. Reliance on a single source of donations can expose organizations to greater risk, especially in uncertain economic times.
3. Capitalize on Legacy and Corporate Giving: The steady performance of bequests and the variability in corporate giving suggest targeted opportunities for growth. Fundraisers should continue to cultivate legacy giving programs and explore partnerships with corporations to secure sustainable funding.
4. Leverage Foundation Support: With foundation giving showing consistent growth, cultivating relationships with foundations can provide a reliable source of funding.
5. Frame Value Towards Public-Society and Human Services: The strong growth in these subsectors indicates shifting donor priorities towards causes that have a broad societal impact. Organizations in these areas should capitalize on this growing interest by clearly communicating their value and impact to potential donors.

Key Takeaways

The 2024 Giving USA report provides a comprehensive overview of the current state of charitable giving in the United States. Fundraisers can leverage these insights to adapt their strategies, optimize their efforts, and ultimately enhance their fundraising outcomes. By understanding the nuances of giving trends, fundraisers can better navigate the challenges and seize the opportunities presented by the evolving philanthropic landscape.