Fundraising Talks – December 2024

News and updates from the USM Office of Advancement Research

Letter from the Director

Welcome to Fundraising Talks for December! It’s hard to believe that 2024 is just a few weeks away. The higher education sector has seen many evolving trends this year, including increased use of technology, challenges with donor retention, and a decline in smaller-dollar gifts. Looking ahead, philanthropy will continue to shape the higher education landscape, and fundraisers will play a crucial role in building meaningful relationships with individuals and organizations. With new opportunities and challenges on the horizon, fundraising professionals are gearing up for the new year, particularly in light of the new political administration. The coming year presents a great opportunity to reassess philanthropic priorities and optimize fundraising success.

We are off to a strong start this giving season. Data from recent GivingTuesday shows a 16 percent increase in donations in the U.S., totaling an estimated $3.6 billion. It’s exciting to note that about 36.1 million people participated in GivingTuesday 2024, a 7 percent increase from 2023. In addition, 18.5 million people made financial contributions, 12.9 million donated goods, 9.2 million volunteered, and 16.6 million advocated for various causes. Let’s hope this upward trend in participation continues into the new year.

Higher education institutions might also benefit from exploring family philanthropy as a source of charitable giving. The National Center for Family Philanthropy’s 2025 Trends Report offers valuable insights for fundraisers. Among the rising priorities in family philanthropy are environmental sustainability, climate action, and human and civil rights. Key findings in the area of grantmaking include:

1. Increased payouts: 71% of foundations are increasing their payouts, spending more than the required minimum of 5% of their corpus. Foundations with larger assets are likely to contribute even more.
2. Streamlined processes: Foundations are simplifying their application and reporting processes to better focus on supporting grantees.
3. Evolving priorities: Fewer foundations are guided solely by historic funding patterns or the interests of individual board members. Instead, giving is increasingly driven by mission, community needs, and the priorities of grantseekers.
4. General operating grants: While one-fifth of respondents plan to initiate or increase their general operating grants, the overall amount of general operating funds has declined.
5. Feedback-driven impact: Foundations are seeking feedback from grantees and communities to assess their impact and effectiveness.

As more foundations report larger assets and are able to grant a higher percentage of their funds, family foundations are becoming an increasingly important source of support. The number of family foundations with assets of $1 million or more has grown to 36%. As the priorities of these foundations continue to evolve, higher education institutions should develop strategies to engage with them effectively.

As we head into the holiday season, I wish you great success in all your fundraising activities. And as 2025 approaches, I hope you take time to renew and reset, bringing positive energy into the new year. As always, feel free to reach out to us with any questions, comments, or assistance with fundraising research.

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