Fundraising Talks – May 2024

News and updates from the USM Office of Advancement Research

Letter from the Director

Welcome to May’s Fundraising Talks! As we head towards summer, many colleges and universities are gearing up for the final weeks of the spring semester, alumni reunions, and commencements. These events provide an opportunity to gather more information and additional insights about the constituents in our databases. Today, higher education faces challenges related to climate change, wars, and economic inequality. Dealing with these challenges requires reliable solutions backed by good data. Making decisions based on data can help us tackle these issues effectively as they arise.

Understanding trends in philanthropy and fundraising helps development professionals focus on the right data points when brainstorming solutions. According to Altrata’s recent report, “Ultra High Net Worth Philanthropy 2024,” donors with a net worth of $30 million or more contribute 38 percent of all individual donations globally. While the number of donors is decreasing, charitable contributions are increasing, primarily coming from a smaller group of wealthy individuals. Many of these wealthy donors give through private foundations and donor-advised funds. Education is the most popular cause among the ultra-wealthy, although giving to conservation and environmental causes is increasing in North America and Europe.

Here are some key findings from the report:

• Ultra-wealthy individuals gave $190 billion to philanthropic causes in 2022, a 25 percent increase from 2018.

• Nearly half of all global ultra-high net worth donations came from North America, totaling $91 billion.

• Almost one in five ultra-wealthy individuals have a private foundation.

• Wealthy women show a strong inclination towards giving, with the top 20 percent of ultra-high net worth female donors donating a significant proportion of their wealth since 2018.

• Ultra-wealthy donors interested in educational causes are often passionate about aviation and technology, while those supporting arts and culture are more interested in travel.

These findings suggest that nonprofits need to find innovative ways to engage these ultra-wealthy donors. There’s no clear link between a person’s source of wealth and their philanthropic giving, so higher education institutions can improve their outcomes by connecting with donors based on their interests and passions. Building these connections requires timely access to the right data. Prospect research can provide valuable information to fundraising professionals, helping them build and strengthen relationships with donors and prospective donors.

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>>