It’s Tough Out There, Y’All

It’s not just your imagination. Fears of inflation and persistently high prices for basic goods continue to whittle away at post-pandemic giving … and it’s getting worse.

According to the Fundraising Effectiveness Project (FEP), the market saw a significant drop across almost all donor metrics from 2021 to 2022, and the downward trend accelerated in 2023.

The FEP graphics below show data through Q3 for calendar years 2022 and 2023.

In 2022, donors were down a whopping 7.1% from 2021. It was only the strength of $500+ donors—sending overall income higher by 4.7%—that compensated for the loss of donors for most organizations.

FEP Q3 2022

But then things got worse. In 2023, donors dropped another 7.6%. Despite seeing some recovery in retention rates, the loss of donors resulted in negative income growth for the first time in decades.

FEP Q3 2023

In 2023, donors at every giving level decreased, but the drop-off in midsize and major donors is especially alarming since they typically represent the most predictable and reliable donors.

FEP Q3 2023

So far, we see no indicators that these downward trends will be reversed in 2024. Organizations must look critically at how donors giving $500+ are cultivated and stewarded to ensure they remain active and engaged.

At the same time, aggressive upgrade modeling and techniques are needed to maximize the value of low-dollar segments while also accelerating growth up the pyramid of giving to rapidly replace donors who may be lost during these uncertain times.