Did you know? Philanthropy is projected to grow by an inflation-adjusted 4.2% in 2024 and 3.9% in 2025, according to a recent study by the Lilly Family School of Philanthropy and CCS Fundraising. These numbers signal a hopeful rebound after a period of economic challenges and highlight a shift in giving behavior that nonprofits and donors can embrace.

At Donor Money, we’ve developed an innovative platform to empower nonprofits and donors to thrive in this new era of giving. With the right tools and strategies, organizations can harness this growth and create an even greater impact in their communities.

Philanthropy by the Numbers

The research reveals several encouraging trends for the giving sector:

• Overall Growth: Philanthropy is expected to grow by 4.2% in 2024 and 3.9% in 2025, adjusted for inflation. This signals an upward trajectory after one of the steepest drops in giving recorded in 2022.

• Individual Giving Trends: While individual giving has increased by 2.6% in 2024 and expected 3.4% in 2025, its share of overall giving will shrink slightly, from 64% in 2022 to 62.8% in 2025.

• Foundation Contributions: Contributions from foundations are expected to grow significantly — by 10.3% in 2024 and 5.3% in 2025.

Despite slight shifts in donor behavior, individuals still account for over 70% of total giving, including estate contributions. This reinforces the need for organizations to focus on retaining and engaging individual donors.

Donor Confidence Is Rising

Recent surveys suggest donors are feeling more optimistic. According to Dunham+Company, 78% of donors plan to give the same amount or more in 2025, an 8% increase compared to the previous year. This uptick is a promising sign for nonprofits, especially as they work to recover from economic uncertainties.

Interestingly, boomer donors are leading the charge, with only 11% saying they would delay giving due to economic concerns. In contrast, younger donors, such as millennials, are becoming more cautious, with 22% saying they wouldn’t give until the economy improves. These insights emphasize the importance of tailoring strategies to engage different donor demographics effectively.

How Donor Money Is Leading the Way

The data highlights a crucial need for solutions that adapt to evolving donor behavior and economic conditions. Here’s how Donor Money is meeting these challenges:

1. Empowering Nonprofits with Financial Flexibility
   Donor Money offers short-term liquidity solutions through its Impact Exchange, allowing nonprofits to focus on their missions without being held back by funding delays. This feature is especially valuable in an era where donors are gradually increasing their contributions but may take time to fully rebound.

2. Making Giving Smarter and More Rewarding
   Our platform ensures that every contribution creates measurable, lasting impact. By turning donations into a dynamic philanthropic currency, Donor Money incentivizes generosity while enabling nonprofits to amplify their reach and resources.

3. Driving Donor Retention and Engagement
   Retention is key in philanthropy. With donors becoming more discerning, nonprofits need innovative ways to keep them engaged. Donor Money’s tools and programs are designed to build trust and loyalty, ensuring that donors stay connected and invested in the causes they care about.

4. Supporting Year-Round Generosity
   Philanthropy tends to spike during the year-end giving season, but Donor Money helps organizations maintain momentum throughout the year. This approach maximizes donor engagement and ensures steady funding for impactful programs.

In Short

The projected growth in philanthropy, paired with rising donor confidence, paints an optimistic picture for the giving sector in 2025 and beyond. While challenges remain — particularly among younger donors — the overall trends suggest a renewed commitment to generosity across the board.

Donor Money is perfectly positioned to help nonprofits capitalize on this opportunity. By offering innovative solutions that adapt to shifting trends and empower both donors and organizations, we’re shaping the future of philanthropy.

With the right tools, strategies, and partnerships, nonprofits can not only meet this moment but thrive in it. Together, let’s turn this upward trend into transformative change for communities worldwide.

Ready to learn more about Donor Money?
👉 Explore how we’re making a difference.