End-of-Year Giving Trends
According to Bloomerang, the term philanthropy means “voluntary action for the common good. Fund development is the essential partner of philanthropy and makes philanthropy possible by bringing together a particular cause and the prospects and donors who are willing to invest in the cause.
I love this explanation! So often in the nonprofit sector we throw around terminology that is unfamiliar to those new to the space. Philanthropy is one of those terms. I would argue that even seasoned nonprofit professionals sometimes don’t know or have forgotten the nuances of the term, so it doesn’t hurt to revisit the definitions.
Fund development is the operationalization of philanthropy and encompasses activities such as fundraising, grant writing, donor stewardship, and financial planning. These activities are aimed at ensuring the financial sustainability and growth of an organization. It is a critical function for nonprofits, as it enables them to fulfill their missions and make a positive impact on their communities or target beneficiaries.
We know that throughout the year, nonprofits are planning, cultivating, stewarding, and generating funds. However, during this last month of the year fundraising in particular is the priority. The commonly cited statistic is that December giving accounts for roughly one fourth (26%) of annual nonprofit revenue.
Some trends to keep in mind:-Inflation has been negatively impacting donor giving over the last 18 months, but experts predict an increase in overall giving this year, and again in 2024. Donor-advised funds (DAFs) are increasingly gaining popularity among donors and continue to serve as a preferred vehicle for gifts. Finally, individual contributions are predicted to remain the main revenue stream for nonprofits, underscoring the continued importance of prioritizing the cultivation of donor relationships. And that’s great news, because everyone within the organization can participate in donor engagement and cultivation. Staff, board, and volunteers can make connections and spread the good word - and doing so is to engage in the “voluntary action for the common good” that is the very heart of philanthropy.