Classy's Fifth Annual Why America Gives Report Reveals Nonprofit Giving Remains Strong Despite Economic Uncertainty

Americans show concern about the economy but plan to be no less charitable

SAN DIEGO, Nov. 10, 2022 /PRNewswire/ -- Classy, a giving platform that enables nonprofits to connect supporters with the causes they care about, unveiled its annual report entitled, Why America Gives 2022: Finding Resilience Through Donor Loyalty. The key findings of the report include what motivates donors in today's world, how economic uncertainty and timely events play a role in giving patterns and insight into how nonprofits can connect with impassioned individuals in meaningful ways.

Overall Findings

Nearly half (49%) of respondents say they have a pessimistic view of the economy, yet this year's report found that 90% of Americans plan to donate the same or more in 2022 than last year. Americans aren't stepping back from charitable behavior, even as nonprofit organizations see individual giving from American households decline.^[1] Instead, we see that they are giving differently. Americans' view of giving has evolved to include donating directly to individuals, as well as non-monetary donations such as volunteering time.

The report also found that donors prioritize giving back in their financial plans. For instance, 53% of donors accounted for donations in their financial planning this year, and 39% have admitted to making small lifestyle changes to support causes they care about. Plus, 60% of donors surveyed gave to new causes in response to a timely appeal, such as a relevant event in the news.

This timely giving is especially evident among younger generations. Gen Z and millennials took it upon themselves to fund causes that matter most to them and drive social change with their dollars. Unsurprisingly, this year's report reveals that the most popular causes younger generations have donated to, and plan to donate again to this year, center around pressing current events:

• Racial Justice & Equity: 30% of Gen Z and 14% of millennials
• Reproductive Rights & Women's Health: 25% of Gen Z and 17% of millennials
• Climate Change: 23% of Gen Z and 14% of millennials
• International Human Rights Crisis: 14% of Gen Z and 17% of millennials
• Disability Rights: 6% of Gen Z and 13% of millennials

Loyal Relationships Unlock Resilience, but Passive Donors Provide Potential 

This year's Why America Gives report from Classy also highlights the importance of capitalizing on donor loyalty, not only ahead of critical fundraising moments like GivingTuesday, but year-round. Donor loyalty was found to result in higher donation amounts, increased likelihood of returning to the same causes and organizations, and continued donations into 2023.

• Loyal donors* expect to give four times the amount of a passive donor, and they are also more likely to give more this year compared to last
•  50% of loyal donors are open to supporting a mix of new causes and organizations alongside those they've given to in the past
• Loyal donors are deepening their relationships with organizations not only through donations to a nonprofit via their website, but also by signing up to receive communication updates and volunteering

Passive donors** are engaged with philanthropy in non-traditional ways. They are more likely than a loyal donor to give directly to an individual. However, the research also shows that 59% of passive donors who give to an individual are likely to do their own research to learn more about charitable organizations that support that cause. To help nonprofits engage these empassioned individuals in a meaningful way, Classy and GoFundMe are building connection points between nonprofits and individuals who have given to a GoFundMe campaign supporting a similar cause. Currently in its pilot phase, the learnings will be used to build a more robust program where the community of 100+ million engaged individuals can be connected with nonprofits working on issues at scale.

Young Generations Are the Future of Giving

If nonprofits want to continue seeing increased success and support of their mission, driving recurring giving among young, engaged donors is critical. According to Classy's Why America Gives survey, 41% of U.S. millennial donors give via recurring donations, the most of any age group.

Even during a recession, today's Gen Z and millennials are more engaged with social causes, proving how important it is for nonprofits to tap into passionate audiences to advance their missions. Classy's Why America Gives survey discovered 49% of Gen Z and 45% of millennials plan to actually give more to nonprofits in 2022.

"Each year, the goal of our report is to provide nonprofits with the best donor insights to increase charitable giving and advance their missions," said Soraya Alexander, president of Classy and chief operating officer of GoFundMe. "This year's findings show that despite economic uncertainty, the world is mobilized and people are inspired and activated. It's inspiring to see the commitment of younger generations to the causes they care about, despite the financial pressures they are facing."

Last year, nonprofits using Classy's platform collectively raised $1 billion for social good while activating 54,000 campaigns. This year, Classy customers will surpass $5 billion raised all-time on the platform.

To view the full Why America Gives 2022 report, which collects findings from 1,000 U.S. adults about their giving behaviors, motivations, and habits, click here.

*Loyal donors are defined as a subset of donors who have either contributed to the same charitable organization at least 3 times over the past five years or made a recurring monetary donation to a charitable organization.

**Passive donors have donated to a cause they care about within the past year, but less than 3 times in the past five years and do not have an active recurring monetary donation.

About "Why America Gives 2022: Finding Resilience Through Donor Loyalty"

This survey was conducted online between August and September 2022, and reached a representative sample of 1,000 individuals 18 years of age or older in the U.S.

Classy, an affiliate of GoFundMe, is a Public Benefit Corporation and giving platform that enables nonprofits to connect supporters with the causes they care about. Classy's platform provides powerful and intuitive fundraising tools to convert and retain donors. Nonprofits using Classy's platform collectively raised $1 billion for social good while activating 54,000 campaigns. This year, Classy customers will surpass $5 billion raised all-time on the platform. Classy also hosts the Collaborative conference and the Classy Awards to spotlight the innovative work nonprofits are implementing around the globe. For more information, visit www.classy.org.

Media Contact:
Krista Lamp
Sr. Director, Brand, Events & Communications
Classy
[email protected]

1. Indiana University Lily Family School of Philanthropy, The Giving Environment: Understanding Pre-Pandemic Trends in Charitable Giving

SOURCE Classy