Giving was down in 2023, but why?

Charitable Giving in 2023 was down 20–30% and it wasn’t just because of the economy. This decline started in 2022 and unless the issues aren’t addressed, it will only continue.

Overall giving was down 20–30%, representing almost 60 BILLION dollars. Number of givers was down 10%. It wasn’t just the economy because Black Friday spending was up 7.5%.

The economy can’t be ignored, but the contributing factor was uncertainty. In 12 years of leading a non-profit, I saw charitable giving increase in bad times and good times, but it always declined in uncertain economic seasons.

Here are the top 3 reasons why giving has declined in my opinion. based on my engagement with the giving community in 2023.

Institutional Distrust

We no longer know who to trust and trust is the economy of all business and donations. Divisiveness and failures of leaders have led to great institutional distrust which leads to people giving less or not giving altogether.

The way to combat cynicism from distrust is transparency with finances and leadership. Trust must be built over time through consistency, honesty, and effectiveness.

Lack of Clear Post-Covid Vision

Covid disrupted the approach of every organization and business. For some, this led to clarity of focus and they came out of Covid’s societal impact stronger. For most, they haven’t settled into their vision and strategy post-Covid.

Trust and giving follow vision and execution. People are desperate for a hopeful and clear vision. Give it to them and the giving will follow.

Donors are more sophisticated and non-profits haven’t caught up

The rise of impact investing and sophisticated giving strategies has been a benefit to many non-profits in expanding their influence for long-term sustainable change.

Sophisticated donors want to be engaged by sophisticated and innovative non-profits. There is an opportunity for non-profits to catch up and invite donors to new, innovative approaches in 2024.

I’m sure there is a reason for every person who chooses not to give or give less, so feel free to share what I missed.

Did you give more or less in 2023? If so, why?