GivingTuesday, the consumer-focused philanthropy event launched in 2012, is coming off its two strongest years. In the United States alone, $2.7 billion was reportedly raised during in 2021 and $3.1 billion in 2022, to say nothing of substantial contributions in goods and promised volunteerism.
Industry pundits are mixed on whether donors’ largesse in 2023 will exceed last year’s level. There are several tailwinds which might indicate increased donations: the event continues to gain visibility; employment rates are up, leading to more potential donors; and, the investor class has more money to contribute. As of the Friday before November 28 – the Tuesday in GivingTuesday – the NASDAQ Composite Index was up more than 26% from late November 2022, the S&P 500 Index had risen by more than 10% and even the Dow Jones Industrial Average was up more than 3%.
One nonprofit tech executive, speaking on background and not for attribution, had an upbeat prediction of a 20% increase from last year.
There are counterweights to these factors. During 2021 and to a lesser extent 2022, the coronavirus pandemic limited consumers’ ability to spend on travel and out of the home entertainment, yielding more disposable income for charitable purposes. While the crises in Ukraine and Israel represent current need, the proximity of domestic assistance for nonprofits made a compelling case for donations. And given that the past few years have felt like a period of unrelenting crises, potential donors might be experiencing philanthropic fatigue.
Nonetheless, some within the community are optimistic for 2023. “Market research continues to show us that people resonate with giving locally,” Rosy McGillan, chief marketing and communications officer at the American Red Cross told The NonProfit Times. “We see that ring true at the American Red Cross, where we are so deeply woven into communities nationwide. Whether it is kids who are gathering donations from friends and family in the spirit of the holidays to donate to their favorite nonprofit or the volunteer who has set a personal goal of serving 500 hours in 2023, this time of year reminds us that every individual has a personal story or reason behind their generosity.”
Nonprofit leaders will have to take an active role in making GivingTuesday a success, and in some cases that might involve modifying messaging. “Donors want to know the organizations they support are making an impact beyond the bottom line and I don’t see that changing,” McGillan said. “This year, I expect to see more nonprofits give insights about how their mission impacts the lives of those they serve. Donors want to see how they are making a difference. We know and understand the important role that nonprofits play in our communities, but it can be difficult to breakthrough during a particularly busy time of the year. Video and social media will continue to play a significant role in reaching people across platforms.”
Some industry figures believe the prominence of global issues will result in related organizations receiving a hearty share of GivingTuesday munificence. “I anticipate a significant focus on organizations focusing on humanitarian aid to war-torn locations worldwide,” Nicole Lamoureux, president and CEO of the National Association of Free and Charitable Clinics in Alexandria, Virginia told The NonProfit Times.
Contributions might go beyond financial. “People are helpful in many ways that I want to ensure we do not overlook because those people who volunteer their time and expertise are great in such a uniquely impressive way,” Lamoureux added. “Generosity is not always a check (though enormously appreciated). Many times, giving time and expertise may be precisely what a nonprofit needs to take them to the next level of serving their communities.”
Count Victoria Vrana, CEO of crowdfunding platform GlobalGiving in Washington, D.C., among the cautiously optimistic. “It’s true that we’re seeing some concerning trends across the sector when it comes to giving. Charitable giving declined in 2022 (annualized) after the two best years on record for giving — and unfortunately we see that trend continuing into 2023,” Vrana told The NonProfit Times. “There are wars and economic challenges that continue to impact us all in serious ways. This year we’re hoping that the spirit and momentum of GivingTuesday will lead people to give generously – just as they always have – as we recognize our shared humanity is more important than ever before.”
The staff at GlobalGiving are doing more than hoping. They’ve continued modifying the charitable project recommendation tool that is built into a dedicated landing page (https://www.globalgiving.org/giving-tuesday). A $1.2 million matching funds giveaway was brought back from last year and the organization’s home page was changed to boost the day. These changes mirror similar modifications made last year which resulted in a fivefold increase in page views and the conversion of “thousands more donors,” according to an organization spokesperson.
Several organizations have created dedicated pages for GivingTuesday, underscoring the day’s increasing importance. Starting on November 21 and running through November 28, San Diego-based software and online fundraising platform company Classy and mobile payment service Venmo teamed up on a dedicated landing page (https://venmo.classy.org/) that enables users to select from and make donations directly to nearly 2,000 vetted nonprofits.
Soraya Alexander, president of Classy and chief operating officer of crowdsourcing platform GoFundMe, sees more potential strength in pledges of volunteering than financial contributions. “We have research that shows high cross-generational intent to donate, but a big falloff in actual giving,” she told The NonProfit Times. “One interesting generational element is some new research we have conducted, coming out soon, that illuminates the differences in how people want to engage with the nonprofits they support,” she said.
“Younger generations, specifically Gen Z who are getting to the age where they have purchasing power, see their gift to be a means of participation rather just a show of arms-length support,” Alexander continued. “If they do not feel engaged and part of the organization through that gift, it erodes trust and commitment – and the potential for donor stewardship.”
That said, Alexander has high hopes for GivingTuesday. “I expect we will continue to see GivingTuesday extending to the days (and weeks) before and after the actual date. Organizations are engaging donors throughout the holiday season, and I expect to see giving spikes continuing to flatten out.”
Some organizations are offering potential donors a more focused approach. DonorsChoose in New York City offers donors opportunities to contribute directly to public school classroom projects. The opportunities certainly are there: Four weeks ahead of GivingTuesday, the organization had already posted almost as many projects that needed funding as it had on GivingTuesday 2022, when it raised $10.6 million on the day.
Whatever an organization’s GivingTuesday results, Shannon McCracken, CEO of The Nonprofit Alliance in Washington, D.C., cautioned nonprofit leaders to take a few deep breaths before evaluating the day. “Fundraisers running programs for organizations that aren’t new to GivingTuesday campaigns will likely once again face a day-after challenge in putting their results into context,” McCracken told The NonProfit Times.
“In 2022, amidst media announcements of exciting year-over-year growth in overall numbers, some U.S. nonprofits scrambled to find relative benchmarks for their performance,” McCracken continued. “Development teams that raised less than the prior year struggled to explain to C-suite and board leadership why they underperformed. Only once GivingTuesday had sufficient time to analyze and report on the complete data did we see that the in-real-time headlines of the day were not, in fact, everyone’s reality.”
Leaders at GivingTuesday seemed to damp expectations in light of what they saw as headwinds. “Trends on many key metrics are down this year: We see declines in the amounts raised by nonprofits, as well as the number of individuals donating,” a spokesperson told The NonProfit Times. “Complex economic and social factors around the world may cause a temporary drop in dollars donated, but generosity remains abundant, and our data has shown that the majority of people give and want to give.”
While not specifically cited by GivingTuesday leaders, factors observed during the past year include total giving to U.S. charities having decreased in 2022, from $516.65 billion in 2021 to $499.33 billion, according to data from Giving USA produced by the Lilly Family School of Philanthropy at Indiana University. Some of that decline was attributed to drops in stock market values, which have corrected during 2023. But donors might be feeling a bit of fatigue, having contributed record highs for generosity during 2021 and 2022.
One organization willing to put a number on its prediction, however, anticipates an increase in giving. According to George Weiner, founder and CEO of Whole Whale, a New York City-based collective of individuals who use data and technology to increase the impact of nonprofits and for-benefit organizations, U.S. giving during GivingTuesday 2023 will hit $3.45 billion, an 11% jump from last year.
Weiner bases his predictions on several factors, which include low unemployment rates and increases in consumer spending, both of which indicate increased propensity to give and increased opportunities to give. But a community that might be prepped for substantial gains in receipts should temper its expectations based on other factors, Weiner cautioned: there was an observable decline in September online searches for GivingTuesday, lingering inflation concerns and what he termed “a hangover from reduced giving in 2022 [that] continues to depress giving this year.”
