Individuals, bequests, foundations and corporations gave an estimated $592.5 billion to US charitable organizations last year, according to Giving USA 2025: The Annual Report on Philanthropy for 2024.
Total giving in the United States grew 3.3% in 2024 (adjusted for inflation), fueled by a strong stock market and GDP growth. For the first time in three years, total giving outpaced inflation as inflation rates moderated from those seen in recent years.
JGA is a proud member of the Giving Institute, and sponsor of this crucial annual resource. Here are the highlights from this year’s research:
Highlights from this year’s Giving USA report on American philanthropy
- The 3.3% inflation-adjusted annual increase in giving is close to the average increase that the report has found over the past 40 years. We have still not reached the record giving total amidst the COVID-19 surge in 2021, but this year’s increase is reassuring.
- Individuals represent 66% of total giving, increasing by 8.2% in 2024, adjusted for inflation at 5.1%.
- An increase of corporate giving to 7% of the total in 2024 is significant, but may not be repeated in 2025 given a changing economy.
- Foundation giving exceeded $100 billion in inflation-adjusted dollars for the third consecutive year. While this is encouraging news, the total also includes distributions from donor-advised funds (DAF), which are rapidly growing. For example, 50% of giving to community foundations is now to DAFs.
- Giving to international affairs and education posted significant growth, after showing declines in 2023. Human services narrowly surpassed education as the second most popular sector for charitable gifts.
Caption: Giving grew to $592.5 billion in 2024, according to Giving USA.
Giving remained strong in 2024, but 2025 could be different
The results are a signal that charitable giving remained strong despite major inflationary pressure. It is important to recognize, however, that interruptions to federal, state, and other public funding, along with legal, political, and economic factors, suggest that 2025 will be different for many nonprofits.
Conditions later in the year will be informative. Based on JGA’s past experience in the nonprofit sector, we know that a strong indicator of giving will be the state of the stock market at the end of the year.
Key implications for 2025 based on the Giving USA data
Reflecting on this new Giving USA data, our experiences with clients, and in context of the current environment, JGA recommends the following strategies to grow generosity.
- Giving is changing. Donors are more likely to use strategic giving vehicles like donor-advised funds and family foundations every year. You should have a strong strategy to engage and steward DAF donors. Be prepared to talk with donors about multi-sourced gifts, in partnership with their foundations, family wealth, and other philanthropic sources.
- Giving USA research recently confirmed what JGA has seen and advised on: younger donors are growing in their influence, they are more social, and likely to embrace causes with direct impact. Think critically about your case for support to directly explain what a gift accomplishes. Incorporate social giving options like giving circles, crowdfunding, and matching campaigns.
- Donors no longer separate into “big donor” or “volunteer” categories. Recent research suggests that top-level donors are also volunteering vigorously. Investment in your volunteer engagement is a key fundraising strategy.
- Historically, fundraising and large campaigns have weathered times of uncertainty. Make it clear to your donors how changes in funding impact your cause. Then, consider offering flexibility to donors who may be ready to engage but nervous about economic shifts. Multi-year pledges, major/planned gift combinations, and other flexible giving options can be helpful.
Giving is changing, and fundraisers should listen with data to adapt
The Giving USA study primarily tracks formal giving to registered nonprofits. As JGA found in our involvement with the national Generosity Commission, Americans view generosity as a combination of this formal giving, volunteering, informal aid, crowdfunding (like GoFundMe), and advocacy. These represent a complicated web of engagement that prepares your constituents to make a gift, so pay attention to all the ways your supporters are contributing as you work to identify your next big donors.
We’ll review the full results in a webinar on Monday, June 30 with Dr. Una Osili from the Lilly School of Philanthropy. Register today to join us and receive the recording.
Donors are changing, and so are their methods of giving. We are tracking the changes and stand ready to help you keep up with the shifting preferences of donors. JGA offers data-driven strategy solutions customized to your organization. Contact us today for a quick consultation on how we can partner to advance your mission in this time of change.