The Current and Future State of Nonprofit Philanthropy

With a continual need for services amongst limited resources, modern society has proven challenging for nonprofit organizations. However, there is good news as fundraising numbers continue to increase, providing nonprofits with new or expanded opportunities. Yet, in order to leverage these opportunities for optimal benefit, nonprofit leaders will need to possess a firm understanding of how nonprofit philanthropy is evolving, as well as what types of donors to target and the best medium for reaching them.

To learn more, checkout the infographic below created by the University of San Francisco’s Online Master’s in Public Administration program.

Nonprofit Philanthropy

Philanthropy Outlook

Philanthropy continues to be a major priority in the United States. In 2015 alone, Americans donated $373.25 billion to charity, which is 4.1% higher than in 2014. The amount and number of charitable donations is expected to continue, especially considering that since the 1970s charitable giving in America has risen faster than the stock market. In total, the projected amount donated to charities between 1998 and 2052 is expected to cap at $55.4 trillion, which is a substantial amount of money that could benefit a number of philanthropic endeavors.

Where Does the Money Go?

The leading recipient of philanthropic donations is religious groups (32% of all donations in 2015), followed by education (15%) and human services (12%). When combined, these three markets received almost 60% of the $373.25 billion donated in 2015, which signals that donators tend to prefer nonprofit organizations that directly assist with human wellness and development.

The leading recipient of philanthropic donations is religious groups (32% of all donations in 2015), followed by education (15%) and human services (12%). When combined, these three markets received almost 60% of the $373.25 billion donated in 2015, which signals that donators tend to prefer nonprofit organizations that directly assist with human wellness and development.

Learn the Medium
One of the most important steps that any nonprofit organization seeking donations will have to undertake is learning the new medium of communication: The Internet. Consider that back in 2013 some of the largest organizations reported a 13% rise in online donations, with some donations exceeding $10 million. With the increased use of mobile, this number is expected to increase significantly in the coming years.

To follow this trend, nonprofit leaders should continue to develop their understanding of how to leverage the Internet and social media to reach potential donors. This may mean that organizations spend more time developing their online presence by way of social media campaigns or even simply ensuring that their site is mobile friendly. Another great way to boost online presence is by providing informative blog posts. For example, organizations could develop step-by-step blog posts that guide potential donors through setting up support groups within their neighborhood. These types of blog posts are traditionally very successful as potential donors tend to trust an organization that helps them solve issues.

Understand Donors
Another important step that any organization hoping to acquire donors may need to take is to develop a better understanding of current and potential donors. In essence, nonprofits should try to uncover the factors that lead people to initially donate, as well as those which help donors remain loyal.

One essential factor will be earning and maintaining the trust of their donors. For example, donors need to be confident that their money is being put to good use, so nonprofit leaders should be as transparent as possible regarding how donated money is allocated. Additionally, some positive ways to encourage donors may include sharing financial reports, success stories, or even videos or images.

Although philanthropy is on the rise, nonprofit leaders will need to continually expand their organization’s brand awareness and online presence. Remaining active in leveraging various mediums and furthering their understanding of donors can help nonprofit organizations received a portion of the multi-trillion charitable contributions projected in future decades.

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Source:

https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/

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