Donors More Optimistic About Economy, Survey Finds

Just weeks after the presidential election, a new survey captured a surge in economic confidence among everyday donors, even if their giving hasn’t caught up to the shifting mood just yet.

The share of donors expecting economic improvement in the next 12 months leaped to 39 percent in November from 24 percent in January, according to Dunham+Company’s latest Donor Confidence Survey, marking the highest level of donor optimism since 2021. The findings paint a relatively rosy picture of giving in the year ahead, with slightly more donors indicating their intention to maintain or increase their support than in previous years.

That doesn’t mean that fundraisers should celebrate any time soon. “I wouldn’t say, ‘OK, well, we can relax now,’” says Rick Dunham, founder of Dunham+Company, who noted that the decision to give is still “going to be determined by the action the charity takes in terms of engaging and inspiring their donors.”

The study, conducted in the weeks following the November election, surveyed 1,492 donors in the United States who had given at least $20 to charity in the previous year.

Most respondents predicted that the economy would improve or stay the same in the year ahead, the most optimistic forecast among donors since the onset of the Covid-19 pandemic.

In recent months, the U.S. economy has experienced cooling inflation, a strong labor market, and high levels of consumer spending — the ripple effects of which seem to have finally caught up with the American public, including donors.

“Enough time has elapsed that people are feeling a bit more healthy economically than they did back” in 2022 when prices began to rise more rapidly than American wages, said Dunham.

President-elect Donald Trump’s victory may have also contributed to the rosy picture, said Dunham, who noted that many voted for Trump because they believed him to be the strongest candidate to lead the economy.

To Give or Not to Give

Even as donors expressed optimism over the country’s economic outlook, they did not express plans to significantly increase their giving.

Nearly 80 percent of respondents — a 1 percent increase from the January 2024 survey — expect to give the same amount or more in 2025, the highest percentage since 2021 and a continuation of what the report calls “the healthy recovery from 2023.”

The share of donors saying they’d give less in the year ahead did shrink to 14 percent by November 2024, down from 16 percent at the beginning of that year. That’s a modest but welcome sign amid what’s been called an exodus of everyday donors, with the share of Americans who give hitting record-breaking lows in recent years.

“It’s not a massive pump,” said Dunham of the modest but encouraging mood shift. “It does indicate that donor confidence is strengthening, but it’s not a bet on it being a banner year type of strength.”

In any case, the economy — and certainly, the election — may be less important to donors’ wallets than charities might think.

When asked about the most important factors in continuing or increasing their donations, 33 percent of donors said the needs of individual charities mattered to them most.

While the general economy and supporters’ finances were important factors in their giving, Dunham said nonprofits should be proactive in cultivating strong relationships and communicating their needs to their donors, regardless of the economic forecast.

“What we preach, even when things are in a downturn, is that your charity’s responsibility is to make sure they’re staying in front of their donors,” he said. “Not just expressing what the needs of the charity are but what the impact of the donor dollar is making possible.”

The Next Generation of Giving

The survey found economic optimism has risen across age groups, with donors indicating they had given more in 2023-24 than they had in the two years before, significantly outstripping the rate of inflation during that period.

Millennials continued to outpace Gen X donors, giving an average of $1,616 per year — about 18 percent more than Gen X households, at $1,371. Baby Boomers remained the most generous, giving an average of $3,256 annually, while the youngest respondents, Gen Z, averaged $867.

The survey also found that digital giving continues its upward trajectory, with 70 percent of donors now making online contributions — a 5 percentage point increase from January 2024.

Traditional methods still play an important role in fundraising, however. The survey found younger respondents are especially eager to receive direct mail, a novelty for generations more accustomed to virtual communications.

“But if they are going to get direct mail and are inspired to give, they’re [still] going to give online,” Dunham said.

Other findings from the report:

• Boomers gave the most online gifts — nine per year — followed by Gen Z with eight gifts, millennials with seven, and Gen X with five.
• Among donors planning to reduce their giving, 38 percent cited personal financial concerns — down from 67 percent in January 2024.
• Smartphone giving continued to gain momentum, with 41 percent of donors now making charitable contributions through their mobile devices.
• Social media fundraising also gained ground, with 23 percent of donors giving in response to social media requests, compared with 16 percent at the start of the year.
• Charity websites remained the most effective digital fundraising tool, with 26 percent of donors citing them as the primary prompt for their online gifts.