The Decline in Small-Dollar and Major Donors Across the Nonprofit Sector Worsens

With numerous channels to reach donors, various technology options available to streamline and digitize processes, and long lists of donors to cultivate, nonprofits are continuing to struggle to meet donors where they are and engage donors to help support their missions. 

Today, the Fundraising Effectiveness Project released the third-quarter results of its quarterly look into fundraising across the nonprofit sector. The quarterly series released its Q1 2023 results in August. Second quarter results are included in the current numbers but were not previously released, according to a spokesperson for the Fundraising Effectiveness Project.

The Quarterly Benchmark Report findings continue to show fewer donors and fewer donations as nonprofits grapple to acquire and retain donors in the post-pandemic era. For example, after the first quarter of the year, the Fundraising Project estimated there were 3.8% fewer donors giving to charity year over year. Now, in the third quarter, that estimate has doubled to 7.6% fewer donors year over year through the first three quarters. 

Year-end giving may become a silver lining, but last year’s fourth quarter transformed a positive trend to a negative trend when donors — mainly major donors — pulled back their giving toward the end of the year, likely due to economic conditions.

Though dollars and retention remain in the red year over year, per this report, the rate of decline has remained steady throughout the year so far. At the moment, the dataset includes $4.1 billion contributed to more than 8,000 nonprofits by 3.1 million donors.

Here’s a look at some of the biggest takeaways from the Fundraising Effectiveness Project’s numbers through the third quarter of 2023.