Growing Italian Generosity Observed, Yet Decrease in Prospective Donors
The pool of potential donors to non-profit organizations has seen a significant decrease between 2019 and 2023, primarily due to a combination of economic challenges, reduced new donor participation, and shifts in donor behavior influenced by external events and funding landscapes.
According to the "Donors, Donations, and Corporate Social Responsibility 2023" report by Emotional Marketing and Atlantis Company, the proportion of non-donors has risen from 17% in 2019 to 34% in 2023. This decline in potential donors has been accompanied by a rise in the average donation amount, with the average donation increasing from 51 to 62 euros (+21%) between 2019 and 2023.
Economic challenges and uncertainty, such as inflation, stock market fluctuations, and cautious donor outlooks, have restrained broad-based giving despite large gifts from major donors and donor-advised funds (DAFs). Additionally, decreased donor retention rates and reductions in the number of new donors have compounded the problem.
To recover and strengthen relationships with potential donors, recommended strategies for nonprofits include focusing on donor stewardship and relationship-building, tailoring fundraising efforts to generational giving patterns, increasing transparency and accountability, expanding outreach and engagement efforts, and diversifying fundraising strategies.
The non-profit sector responded promptly and effectively to the pandemic, earning recognition from regular donors and some of the 'undecided'. However, some direct fundraising initiatives have not always been effective or transparent, leading to a climate of mistrust.
The report does not provide information about the specific non-profit sectors or causes that were surveyed, the reasons for the decline in potential donors, the geographical location of the surveyed individuals, or the corporate social responsibility aspects that were surveyed.
Despite these challenges, by addressing economic contexts, donor retention, engagement with emerging giving modalities like DAFs, generational targeting, and transparency, nonprofits can better navigate the post-2019 decline and restore a more robust relationship with potential donors.
References: [1] The Chronicle of Philanthropy (2023) The State of American Giving 2023. [2] Blackbaud (2023) The 2023 State of Donor-Advised Funds Report. [3] National Council of Nonprofits (2023) The Impact of Government Policy on Nonprofits. [4] Fundraising Effectiveness Project (2023) The 2023 Fundraising Effectiveness Survey Report. [5] Millennial Impact (2023) The 2023 Millennial Impact Report.
A business's personal-finance decisions can influence their involvement in donating to non-profit organizations, as economic challenges and uncertainties, such as inflation and stock market fluctuations, have led some individuals to be more cautious about their charitable contributions. Furthermore, organizations looking to improve their fundraising strategies could focus on increasing transparency and accountability to build trust with potential donors and encourage more personal-finance investments in their causes.
