Planning for the Future of Charitable Giving (Part 1 of 2)
Charitable giving reached a record high in 2025, but that headline tells only part of the story. These dollars came from fewer donors, meaning nonprofits face a more concentrated and less predictable fundraising landscape.
For organizations planning budgets and campaigns for their new fiscal years, understanding these shifts is more important than ever. The good news is that nonprofits don’t need to predict the future to prepare for it.
Charitable Giving Trends: More Dollars From Fewer Donors
According to Giving USA, Americans donated an estimated $617.2 billion in 2025, with individuals accounting for nearly two-thirds of all charitable giving. But while overall giving increased, the number of people making charitable donations continues to decline.
A growing share of charitable dollars is coming from a smaller group of donors making larger gifts, including bequests.
What This Means for Fundraising Strategy
Instead of focusing primarily on year-over-year revenue, non-profit leaders should also track indicators that reveal the health of their fundraising program over time. Donor retention, donor lifetime value, gift timing, the strength of the major gift pipeline and planned giving commitments can collectively provide a more complete picture of future fundraising potential.
Perhaps most importantly, organizations should adopt a multi-year perspective. Cultivating future major gifts and growing a planned giving program take time, but they also create greater resilience in an increasingly unpredictable fundraising environment.
How Recent Trends and Tax Changes May Reshape Donor Behavior
From economic conditions to changes in federal funding, financial markets and more, a wide range of influences are behind these shifts in charitable giving. While tax policy is only a piece of the puzzle, new tax policies are likely to affect how some donors structure their gifts, making it important for nonprofits to understand the broader trends at work.
Key Tax Changes That May Influence Giving Patterns
Several recent changes to the federal tax code could influence charitable giving decisions:
- Taxpayers who claim the standard deduction can now deduct up to $1,000 in charitable cash contributions ($2,000 for married couples filing jointly), extending a tax benefit to millions of non-itemizers.
- Taxpayers who itemize deductions must exceed a 0.5% adjusted gross income (AGI) threshold before charitable contributions become deductible.
- The highest-income taxpayers will see the value of their charitable deduction capped at a 35% tax benefit.
These provisions are unlikely to change people’s desire to support the causes they care about, but they may influence when and how they give. While it’s helpful to educate your donors about these changes and it may influence your timing of direct mail or email communications, keep primary messaging donor- and mission-focused rather than tax-focused.
Expected Shifts in Donor Behavior
Many fundraising experts expect these new rules to reinforce trends already underway. Some donors may choose to “bunch” multiple years of contributions into a single tax year to maximize deductions, resulting in larger but less frequent gifts. Others may increasingly use donor-advised funds, appreciated securities, charitable trusts or other tax-efficient giving strategies.
At the same time, planned giving is likely to receive greater attention. Giving USA 2026 reports that charitable bequests increased by 16.7% in 2025, continuing a period of strong growth that may reflect the ongoing transfer of wealth between generations.
What This Means for Fundraising Strategy
Together these shifts point to a fundraising environment where annual results may become less predictable, even if long-term generosity remains strong. Organizations should adopt a long-term view of donor journeys, stewardship and financial planning.
- Major Gifts: Larger gifts are coming from fewer donors while competition for philanthropic dollars intensifies.
- Planned Giving: As wealth transfers across generations accelerate, bequests continue to outpace overall giving growth.
- Multi-Year Planning: Non-profit leaders and boards should evaluate fundraising performance over multiple years with scenario planning that includes conservative, expected, and optimistic revenue forecasts.
Preparing for Changing Donor Behavior
Organizations that understand these trends will be better prepared to adapt to a shifting fundraising environment. In Part 2, we’ll turn these insights into action by exploring practical strategies for strengthening major donor relationships, expanding planned giving, and improving donor communications.
Riger Marketing partners with nonprofits to create strategies tailored to their unique audiences, helping our clients adapt to today and plan for tomorrow.