Americans are showing economic concern but are planning to be charitable
SAN DIEGO, Nov. 10, 2022 /PRNewswire/ — Classy, a giving platform that helps nonprofits connect supporters with the causes they care about, has released its annual report titled, Why America Gives 2022: Finding Resilience Through Donor Loyalty. The main findings of this report are what motivates donors today, how economic uncertainty and timely events contribute to giving practices and understanding how non-profits can connect with stakeholders in positive ways.
Nearly half (49%) of respondents say they have a pessimistic view of the economy, yet this year’s report found that 90% of Americans plan to spend the same or more in 2022 than last year. Americans are not backing down from the philanthropic movement, even as nonprofit organizations see American donations dwindle. On the contrary, we feel that they are offering the opposite. Americans’ attitudes toward giving have changed to include giving directly to individuals, as well as non-monetary contributions such as volunteer time.
The report also found that donors prioritize giving back in their financial plans. For example, 53% of donors have contributed to fundraising this year, and 39% have admitted to making some lifestyle changes to support causes they care about. In addition, 60% of donors surveyed gave new reasons for responding to a timely request, such as an important news event.
This timely giving is especially evident among the younger generations. Gen Z and millennials have taken it upon themselves to fund the things that matter most to them and drive cultural change with their dollars. Unsurprisingly, this year’s report shows that the most popular reasons that the younger generations have given, and plan to give again this year, among the current trends:
- Racial Justice & Equity: 30% of Gen Z and 14% of millennials
- Reproductive Rights & Maternal Health: 25% of Gen Z and 17% of millennials
- Global warming: 23% of Gen Z and 14% of millennials
- The International Human Rights Crisis: 14% of Gen Z and 17% of millennials
- Disability Rights: 6% of Gen Z and 13% of millennials
Loyal Relationships Unlock Courage, But Irregular Donors Offer Possibilities
This year Why America Gives a report from Classy also highlights the importance of leveraging donor loyalty, not just ahead of critical fundraising times like GivingTuesday, but throughout the year. Donor loyalty was found to lead to more revenue, more opportunities to return to the same events and organizations, and continued giving until 2023.
- Loyal donors* expect to give four times as much as safe donors, and are more likely to give this year than last year.
- 50% of loyal donors are willing to support a mix of new products and organizations alongside their previous donors.
- Loyal donors are expanding their relationship with organizations not only by donating to nonprofits through their website, but also by signing up to receive contact and volunteer updates.
Donors** are engaging in philanthropy in non-traditional ways. They are more than just a loyal donor to give directly to an individual. However, the survey also shows that 59% of donors who only give to individuals are more likely to do their own research to learn more about the charities they support. To help nonprofits put these philanthropic resources to good use, Classy and GoFundMe are creating a connection between nonprofits and individuals who have donated to a GoFundMe campaign in support of a similar cause. Currently in its pilot phase, the training will be used to create a robust program where a community of 100+ million active participants can be connected to nonprofits operating at scale.
Young Generations Are the Future of Giving
If nonprofits want to continue to see more success and support their work, driving repeat giving among young, charitable donors is essential. According to Classy’s Why America Gives According to the survey, 41% of US millennial donors give through recurring donations, especially among any age group.
Even during economic downturns, today’s Gen Z and millennials work with people, proving the need for nonprofits to recruit people who are interested in advancing their work. Classy is Why America Gives A survey found 49% of Gen Z and 45% of millennials plan to give more to non-profits in 2022.
“Each year, the goal of our report is to provide nonprofit organizations with the best possible donor information to increase charitable giving and improve their operations,” he said. Soraya Alexander, president of Classy and chief operating officer of GoFundMe. “This year’s research shows that despite the economic downturn, the world is encouraged and people are encouraged and supported. It is encouraging to see the commitment of the younger generations to the causes they care about, despite the economic challenges they face.”
Last year, non-profits using the Classy platform together were raised $1 billion for social media while launching 54,000 campaigns. This year, Classy customers won $5 billion has always been raised on the platform.
To view the full Why America Gives 2022 report, which draws on findings from 1,000 US adults about their giving practices, motivations, and habits, click here.
*Loyal donors are defined as a subset of donors who have donated to the same organization at least 3 times in the past five years or have repeatedly donated to a charity.
**Donors have given to causes they care about within the past year, but less than three times in the past five years and do not have recurring funding.
About “Why America Gives 2022: Finding Resilience Through Donor Loyalty”
The survey was conducted online between August and September 2022and reached a sample of 1,000 people aged 18 or older in the US
Classy, a partner of GoFundMe, is a Public Benefit Corporation and provides a platform that helps nonprofits connect supporters and causes they care about. The Classy platform provides powerful tools to generate revenue to convert and retain donors. Non-profits using the Classy platform together were raised $1 billion for social media while launching 54,000 campaigns. This year, Classy customers won $5 billion has always been raised on the platform. Classy also hosts the Collaborative and the Classy Awards to showcase nonprofit work around the world. For more information, visit www.classy.org.
Sr. Director, Brand, Events & Communications
- Indiana University Lily Family School of Philanthropy, The Giving Environment: Understanding the Pre-Pandemic Factors in Philanthropic Giving