In recent years, we have observed several notable trends in charitable giving that are shaping the landscape of philanthropy in suburban Eastern Jackson County and beyond. Understanding these trends helps us adapt and adjust our strategies to meet the evolving needs and preferences of our generous donors and the communities we serve.

• Individual Giving Continues to Lead: Historically, individual donors have been the primary drivers of charitable giving in the United States, and this trend remains strong.  According to Giving USA, in 2023, individual giving was 67% of the total giving ($374 billion from individuals of  $557 billion in total). The generosity of individual donors, especially the very wealthy, continues to play a significant role in shaping the philanthropic landscape. But that’s not to discount smaller, regular donors, who remain the financial backbone of many nonprofits.
• Rise of Donor-Advised Funds (DAFs): Over the past few years, the popularity of donor advised funds has surged. According to data from the National Philanthropic Trust, the number of DAFs in the US increased by 2.9 percent from 2021 to 2022, reaching an estimated 1,771,844 accounts. Giving USA estimates that more than $52 billion in grants are made from DAFs each year. This trend has implications for your community foundations as we collaborate with a wide range of donors who utilize their DAF as a strategic charitable giving tool. More than 25 percent of the charitable funds held at THCF are DAFs, and that number continues to rise steadily as more and more people learn about the benefits of utilizing a DAF for their personal giving.
• Shifting Landscape of Volunteering: While community engagement through volunteering has been a cornerstone of philanthropy, recent data suggest a decline in formal volunteering numbers. As a community foundation, we need to understand the changing dynamics of volunteerism and explore innovative ways to continue fostering a culture of giving back to our community. Volunteers play a critical role in most nonprofits, and your community foundation is no different. Our board of directors and four advisory boards are comprised of community leaders, business owners, educators, professionals, and more from throughout the region. They help lead the foundation and play a critical role in selecting scholarship recipients and competitive grant awards.
• Rise of Noncash Contributions: Noncash donations, particularly appreciated stocks, securities, and other noncash assets, have seen a significant uptick. According to the Internal Revenue Service (IRS), among all itemized charitable contributions, the share of noncash donations increased from 27 percent in 2013 to 46 percent in 2021. Understanding the motivations behind noncash giving and its impact on philanthropy allows your foundation to assist with such complex contributions efficiently and effectively.

Reflecting on these trends, it is evident that the landscape of philanthropy is continuously evolving. As your local community foundation, we are committed to adapting our strategies, leveraging these trends to maximize the impact of our fundholder's charitable giving, and serving as a catalyst for positive change in our community.

We invite you to join us in shaping a brighter future for our community through your generosity and unwavering support. If you would like more information about starting a fund, becoming a volunteer, or how to make a greater impact with your philanthropy, please give us a call. Together, we can make a meaningful and lasting difference.