Fundraising Talks – April 2025

News and updates from the USM Office of Advancement Research

Letter from the Director

Welcome to the April edition of Fundraising Talks. With the unpredictable weather we’ve been experiencing, it’s hard to say whether spring has truly arrived—but here’s hoping we can all enjoy the season in its full bloom soon. Just as the weather has been uncertain, we continue to closely monitor the shifting political and economic landscape and its impact on the education sector. Federal budget cuts, fluctuating markets, and fears of a potential recession are all shaping the outlook for fundraising and philanthropy in the months ahead. Nonprofits have already been seeing a trend of “dollars up, donors down”—meaning total giving is rising, but the number of donors is shrinking. In times of economic uncertainty, individuals may feel unable to give, or may delay their giving, increasing the likelihood of a decline in donations.

On a more encouraging note, the Voluntary Support of Education 2024 report from the Council for Advancement and Support of Education reveals that charitable giving to higher education rose by 3 percent in fiscal year 2024. Drawing data from 675 colleges and universities through June 30, 2024, the report shows that giving increased to $61.5 billion from $58 billion in FY 2023.

Here are some key takeaways:

Increased donor giving reflects a commitment to opportunity.

• 43.6 percent of restricted gifts supported current research operations.
• Foundation giving saw the greatest increase, while giving from corporations and other organizations declined by 7.3 percent and 5.5 percent, respectively.
• Alumni were the second-largest source of contributions.

Giving by donor type:

• Alumni giving doubled when including soft-credit contributions.
• 42.5 percent of foundation support came from personal and family foundations, many funded by alumni.

Giving by purpose:

• Gifts for current operations increased by 2.3 percent.
• The overall growth was driven by an 11.7 percent surge in capital gifts, especially endowment contributions.

Endowment impact:

• 87.2 percent of endowment gifts helped offset essential costs and reduce the financial burden of education for students.

Economic influences:

• Giving was positively affected by GDP growth and strong stock market performance.

Foundation giving trends:

• Many alumni are now giving through foundations and donor-advised funds, contributing to foundations surpassing alumni as the leading donor group since 2007.

Gift volume and value:

• In 2024, 240 institutions reported receiving 28,191 gifts totaling $2.40 billion.

Alumni behavior over time:

• As alumni get further from graduation, both the number of donors and their average contributions tend to increase.

As we head into the second quarter of the year, we encourage development professionals to seek new and meaningful ways to engage both current and prospective donors. In times when federal support is limited, building impactful and trustworthy relationships with your donors and communities is more important than ever.

This is also a great opportunity to explore partnerships with foundations and organizations that champion higher education.

As always, we’re here to support you—please don’t hesitate to reach out with questions, comments, or requests for fundraising research assistance.

Best Regards,
Sapna and USM Advancement Research Team
Read more in this issue of Fundraising Talks>>