Fundraising Talks – April 2024

News and updates from the USM Office of Advancement Research

Letter from the Director

Welcome to April’s Fundraising Talks. I hope you are enjoying the beautiful spring days. It was exciting to witness the anticipation surrounding the solar eclipse this week as it passed through many states in North America, offering a potentially once-in-a-lifetime opportunity for many. As I read about how the eclipse brought millions together across the nation, it reminded me of how our offices can create strategic events that engage donors, uniting them for charitable causes. People are inherently philanthropic and would likely be interested in supporting highly engaging events that make a tangible impact in their lives. Forecasting fundraising results for this year presents challenges as we await the 2024 presidential election and consider other unknown factors that could influence charitable giving to organizations. The best approach to adapt to changing and new factors is by taking into consideration known variables that can help fundraisers plan and raise funds successfully.

The 2024-2025 Philanthropy Outlook Report by the Indiana University Lilly Family School of Philanthropy shares promising data predicting growth in total charitable giving over the next two years. This report can be utilized to identify sources and areas where fundraisers can focus their efforts for solicitation in 2024 and 2025. The report also highlights economic factors linked to total giving in 2024 and 2025. Three economic factors expected to positively impact total giving are personal income, net worth, and the S&P 500. The Philanthropy Outlook Report examined giving by various sources and provides the following key findings, enabling fundraisers to devise strategic plans for the next two years:

1. Total charitable giving in 2024 and 2025 is projected to surpass the 10-year, 25-year, and 40-year annualized average rates of growth.
2. Giving by individuals/households is expected to increase by 2.6 percent in 2024 and by 3.4 percent in 2025. This prediction is based on factors such as average growth in personal income and net worth, and growth in consumer sentiment.
3. Giving by foundations is anticipated to rise by 10.3 percent in 2024 and by 5.3 percent in 2025. This increase in foundation giving will largely be influenced by the previous year’s performance of the S&P 500.
4. There will be an uptick in giving by estates, significantly impacted by the average growth in net worth in preceding years. The rate of giving by estates is expected to increase by 2.7 percent in 2024 and by 5.5 percent in 2025.
5. Corporate giving in 2024 is predicted to increase by 1.9 percent and by 2.6 percent in 2025. Factors contributing to this increase may include growth in Gross Domestic Product (GDP), low unemployment rates, and performance of the S&P 500.

If institutions are lacking support from any of the areas predicted to grow in the coming years, now is the time to investigate how to improve and maximize fundraising efforts from those sources. A recent survey conducted by RNL provides insights into giving and volunteering habits collected from more than 20,000 alumni from 15 higher education institutions. Findings from the survey reveal that only 27 percent of alumni donated to their alma mater in 2022. Institutions should take steps to create fulfilling college experiences for alumni, understand their personal passions, and build connections with them to increase giving.

Higher education relies on philanthropy to advance educational opportunities and programs, and therefore, it is imperative that we utilize the valuable information from these research findings to remain focused on raising more funds. As always, please feel free to reach out to us with questions, comments, or any assistance with fundraising research!

Best Regards,
Sapna and USM Advancement Research Team
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