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Six Trends in U.S. Philanthropy: What International Nonprofits Should Know About U.S. Donors

November 06, 2024

The landscape of philanthropy in the United States is evolving, and understanding these changes is key for international nonprofits looking to attract U.S. donors. While the core principles of giving — compassion, connection, and trust — remain the same, the ways in which Americans donate and their priorities are shifting in response to technology, global events, and changing social attitudes. For international nonprofits, staying informed on these trends gives insight into how fundraisers can effectively engage U.S. donors and secure funding for their work. Below are six of the most recent trends shaping U.S. philanthropy:

1. Newer Donation Methods Gaining Popularity Over Cash and Check

More donors are opting to give online, driven by the convenience and accessibility of digital platforms. Fundraising via websites, social media, and mobile apps is now the norm. The COVID-19 pandemic accelerated this shift, making it essential for nonprofits to have a strong online presence. A recent survey from the Blackbaud Institute found that Gen Z donors use an organization’s website to donate at nearly twice the rate assumed by fundraising professionals, as opposed to giving with cash or check. For international grantees, this insight means they should consider investing in user-friendly donation platforms and engaging with potential donors through social media campaigns, email newsletters, and virtual events.

Donations of non-cash assets, such as stocks, have also increased, while workplace giving has shifted towards new platforms. However, individual cash donations, which remain crucial for many nonprofits, are decreasing. Nonprofit leaders should adapt to these changing trends to sustain their organizations.

2. Increased Interest in Monthly Giving Programs

More nonprofits are adjusting their fundraising strategy to include a focus on increasing monthly or recurring gifts, as they provide a steady, predictable stream of income. This method allows U.S. donors to contribute consistently without a significant, one-time financial burden. For nonprofits, monthly donors provide a steady, predictable stream of income. Recent studies also show that higher frequencies of donating lead to higher donations from donors. Holidays are an especially good time to highlight these programs – 35% more recurring donations started on Giving Tuesday in 2022 and drove over $268K in new recurring revenue for organizations on that day. During the same year, 57% more recurring donations started on New Year’s Eve, driving $365K in new revenue. Charities soliciting donations online can capitalize on this by offering flexible, easy-to-set-up monthly giving options on their websites or through platforms that cater to American audiences.

3. Impact-Driven Donations

U.S. donors are increasingly interested in understanding the tangible impact of their contributions. Rather than donating blindly, they want to see measurable results, such as how many people were helped, how funds were used, and what outcomes were achieved. International nonprofits should prioritize clear, transparent communication about the results of their programs and share success stories that showcase the real-world difference donors’ dollars are making.

4. Rising Popularity of Donor Advised Funds (DAFs)

Charitable giving has evolved beyond traditional cash donations, with the COVID-19 pandemic highlighting other forms like mutual aid and crowdfunding, though both have recently declined.

Donor Advised Funds (DAFs) are one of the fastest growing vehicles for charitable giving in the U.S. The 2023 DAF Report by the National Philanthropic Trust indicates that in 2022, nearly 2 million DAF accounts received approximately $86 billion in contributions, distributed around $52 billion in grants, and concluded the year with about $229 billion in assets. These funds allow individuals to set aside money for donations while receiving an immediate tax benefit. The funds are owned and managed by sponsoring organizations like Fidelity Charitable or DAFgiving360 (formerly Schwab Charitable), but donors retain the ability to recommend grants to their preferred charities. International organizations seeking U.S. donations should look into how to receive grants through DAFs and consider becoming eligible for these types of contributions.

5. Issue Focused Giving

Social Justice and Equity-Focused Giving

The U.S. has seen a significant rise in donations aimed at addressing social justice and equity issues. From racial equality to gender rights and climate justice, American donors are increasingly aligning their charitable giving with causes that promote fairness and systemic change. International nonprofits working in areas such as human rights, poverty alleviation, and environmental justice should emphasize how their missions align with these growing priorities.

Environmental and Climate Concerns Gaining Attention

Concern over climate change and environmental sustainability is prompting more Americans to give to organizations tackling these issues. U.S. donors, especially younger generations, are increasingly directing their support to nonprofits focused on conservation, renewable energy, and sustainable development. International organizations that operate in areas of environmental protection or climate action should highlight these aspects of their work to attract donors from the U.S.

Increased Focus on Crisis and Disaster Relief

In a world that feels increasingly uncertain, U.S. donors are responding more generously to humanitarian crises, whether they be natural disasters, refugee situations, or global pandemics. International organizations working in emergency relief should be prepared to mobilize quickly in times of crisis and ensure they have robust, real-time communication strategies in place to engage potential donors when urgent needs arise.

To support these efforts, CAF America’s Global Relief Navigator offers a groundbreaking solution, allowing donors to make safe, compliant grants to validated disaster response organizations worldwide. Accessible through the DonorView Portal for fundholders or an interactive map for one-time gifts, this tool leverages our extensive database of verified charities actively responding to crises. By tracking where disasters are occurring globally and highlighting organizations on the ground, the Global Relief Navigator promotes an equitable and effective approach to crisis relief, helping donors respond quickly and with greater confidence in times of urgent need.

6. Younger Donors Are Shaping the Future of Giving

Millennials and Gen Z are rapidly becoming a powerful force in philanthropy, and their approach to giving is notably different from older generations. Younger donors prioritize transparency, direct impact, and social good. They are more likely to support organizations that align with their values and are drawn to causes like climate action, social justice, and international development. Engaging these donors requires authenticity, strong digital outreach, and compelling storytelling that resonates with their desire to make a difference.

Younger Americans use TikTok and Instagram Reels to give marginalized communities a voice. These platforms are underutilized by nonprofits, with strong potential for authentic engagement and fundraising. Nonprofits can leverage TikTok’s unique algorithm, storytelling capabilities, and trends to connect with audiences, especially Gen Z, who heavily engage on the platform. Charities should work to overcome hesitations about video creation and embrace TikTok as a powerful tool for boosting awareness and donations. Prioritize consistency, encourage user-generated content, and focus on authentic storytelling to connect with TikTok’s vast and engaged audience.

How International Nonprofits Can Adapt to U.S. Donor Trends

For international nonprofits, understanding these trends is key to attracting U.S. donors. Focus on building a robust digital presence, offering transparency, and emphasizing the tangible impact of your work. Consider creating monthly giving options and tapping into the growing interest in equity, environmental sustainability, and crisis relief. By staying attuned to the preferences of American donors, your organization can build strong, lasting relationships that will help sustain your mission and expand your reach.

Conclusion

The world of U.S. philanthropy is dynamic and evolving. As trends continue to shift, international organizations that stay agile and responsive to donor interests will be better positioned to attract sustained support.

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About the Author

  • Margot Cunningham - Headshot

    Margot Cunningham serves as CAF America’s Officer of Marketing and Communications. Her responsibilities include planning, creating, and implementing marketing and communications strategies, with a focus on building awareness of our mission and engaging prospects and donors with long-form content and event opportunities.

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