Charitable contributions in the United States rose to $592.5 billion in 2024, marking a 3.3% increase compared to the previous year, according to a recent “Giving USA” report, which examines the state of U.S. philanthropy. Interestingly, of the numerous causes, only the religious sector witnessed a decrease in donations when adjusted for inflation.
Despite these promising statistics, the news might not do much to alleviate concerns among nonprofits, which in 2025 faced substantial cuts in federal funding, extensive layoffs exceeding 20,000, heightened demand for services, and economic uncertainties causing some donors to hesitate or pull back from donating.
“There’s a lot of uncertainty, a lot of volatility, especially in financial markets,” commented Una Osili, Associate Dean at the Indiana University Lilly Family School of Philanthropy. “When you’re not sure exactly what’s happening and the news is changing, that sometimes leads to donors just being uncertain and not acting. Uncertainty can dampen giving.”
Nevertheless, the year saw a return to typical donation patterns, noted Jon Bergdoll, Managing Director for Giving USA. The abnormalities introduced by the pandemic and high inflation in prior years meant traditional giving models did not always apply. By 2024, the expected patterns began reemerging.
“The fundamentals of giving are still working like they historically have in the U.S.,” Bergdoll remarked. “We’ve been through a lot of changes, and there’s potentially more on the horizon, but it is important to take comfort in that we are still seeing the same things move and shift giving that 20 years ago moved and shifted giving.”
A robust performance in corporate sectors, particularly tech ones, boosted corporate donations by 6% after adjusting for inflation. Individual giving experienced a 5% rise, while foundation donations slightly decreased by 0.5%. Bequests, or donations through wills, saw a 4.4% drop, though Bergdoll stressed their inherent volatility as they can be significantly affected by the passing of a single wealthy individual.
The distribution of donations by source remained stable over the past two years, with individuals accounting for 66%, foundations at 19%, bequests at 8%, and corporations at 7% in 2024.
Interestingly, while inflation-adjusted foundation giving dipped, many organizations may not have noticed due to a 2.4% increase in current dollar contributions from foundations.
Examining donation trends by sector, almost all causes saw increased donations. The sharpest increases were for public society benefits at 16.1%, international affairs at 14.3%, and education, which grew by 9.9%. The public society benefit category encompasses organizations like the United Way and commercial donor-advised funds, which have gained popularity.
Compassion International had an unprecedented fundraising year in 2024, according to Chief Development Officer Mark Hanlon, who credited the surge to the organization’s ongoing engagement with donors, despite a few exceptional gifts.
Brown University also reported increased donations, partly due to the conclusion of a capital campaign initiated in 2014, which helped maintain donor engagement, according to Sergio Gonzalez, their Senior Vice President for Advancement. “It was not only the larger gifts that really were transformative but the cumulative giving from all,” he stated. “Those dollars are critically important.”
On the other hand, sectors such as religion saw a 1% decrease in inflation-adjusted giving, with gifts to foundations only increasing by 0.5%, and health and human services by 2%.
Nonprofits are grappling with anxieties over both incoming donations and heightened demands for their services. Cuts in federal budgets weigh heavily on human services organizations. The Mid-Ohio Food Collective, a food bank aiding more than 20 counties from rural Appalachia to urban Columbus, is particularly concerned about potential reductions to the Supplemental Nutrition Assistance Program (SNAP) and their implications.
“There’s been millions and millions of dollars in cuts to the food that was going to be coming to food banks,” said CEO Matt Habash. “For every meal we give out in the food-bank world, SNAP is nine meals. So you cut SNAP, and there’s no food there from the private sector to make that up.”
The uncertainty surrounding government assistance complicates nonprofits’ ability to strategize fundraising efforts, remarked Roger Schulman, CEO of Fund for Educational Excellence, which aims to address educational equity in Baltimore City schools.
“The gaps being left by the clawback of federal dollars as well as the unpredictability of what federal dollars will or will not come in the coming year has made it really hard to understand where philanthropy can make a difference right now in a meaningful way,” Schulman noted. “The gap is so big that even our largest foundations can only do so much to help sustain what is.”
Jim Klocke, CEO of the Massachusetts Nonprofit Network, echoed these concerns, pointing to the network’s annual survey of its 700 members. “Usually, you get more organizations that say my financial picture will be better in a year. Some say worse, but more say better,” Klocke explained. “This time, almost everybody said they expect their financial condition to be worse a year from now. It’s a pretty much across-the-board concern.”
Organizations are also worried about potential shifts in donor priorities. In times of crisis, human services organizations often witness increased donations, according to Bergdoll from Giving USA.
In response, the Mid-Ohio Food Collective is working to adjust its messaging to encourage more local donations. “The cavalry is not coming from the federal government,” acknowledged CEO Habash. “Even our state government has cut back on the amount of money they’re giving us. The messaging for us is really about local. We’ve got to convince people locally to do something.”