The Generosity Crisis

America’s proud history of philanthropy is in jeopardy. 

 

According to the just-released report by the Generosity Commission, the number of people nationwide who support nonprofits financially is at a historic low, with no clear reversal in sight. At the same time, demand for the services nonprofits provide is higher than ever, leaving our most vulnerable populations at greater risk.

 

The generosity crisis is real. Just 20 years ago, two-thirds of all American households gave to charity. Today, less than half give, and total giving is also down. Practitioners cite different reasons for the decline—the economy, trends in church attendance, or even social media’s promotion of conspicuous (and expensive) consumption. 

 

From our conversations with donors, the crisis is compounded by a fundraising sector that is hesitant to build real relationships with their supporters. The focus is on transactional, event-based fundraising instead of efforts to get to know donors and their philanthropic passions. Alarmingly high turn-over rates among nonprofit staff make it hard for donors to build connections that last.