According to GivingUSA, the definitive report on charitable giving in the U.S., philanthropy has been amazingly resilient over the past 60 years. With only four years of decline over that period, philanthropy continues to grow, achieving new levels of investment each year. Many in our sector, however, believe that we are experiencing — or approaching — a major crisis in generosity. An increasing trend is for fewer donors who make larger gifts, complicated by more complexity in how donors give; greater scrutiny of the nonprofit organizations invested in; and increased diversity in the demographics, giving patterns and institutional or issue loyalty of those who give.

Philanthropy has never been rooted in the true concept of democracy, an ideal where each person’s viewpoint is equally valued, everyone has an equal opportunity to impact our economy and society, and each dollar has the same value as any other. Philanthropy is a meritocracy, in which those who have more give more (in absolute dollars, but not as a percentage of their disposable income) and, in return, receive greater recognition and influence. While those at the top of the giving pyramid give and get more, it is important to pay attention to those at the bottom and middle of the pyramid because their consistent albeit lower level of support can often be used to cover operating expenses; and they are the major donors of the future as their wealth and influence and/or passion and commitment grow.

In 2025, added to these trends of the past decades will be the questions, changes and complexity that come with a new Presidential administration. Tax breaks may be made permanent, personal wealth may rise (or appear to rise, at least temporarily), and the rich will likely become richer. That could positively impact philanthropy. On the other hand, a strained middle class, combined with reduced government support for basic human needs, education, healthcare and more, means that there will be more people in need who must rely on the largesse of philanthropic people and institutions to close the gap. As experienced in 2016, the wave of giving to support the environment, social justice and healthcare organizations increased and accelerated, and was sustained over multiple years, because people feared that government would no longer act on their behalf, and that their personal philanthropy was critical to making a statement; expressing fear and anger, optimism or hope; and optimizing quality of life. Other donors also gave more, but in a more temporary fashion, to more conservative institutions aligned with their personal and political viewpoints.

I do not take a pessimistic view of philanthropy. I do not believe we are in a crisis. We are in times of fundamental challenge and change, and nonprofit leaders working with philanthropists must be ready to leverage and optimize that change.

I hope that we are not undergoing an existential threat to the American Way. If that happens, and if concepts of democracy, the rule of law, and a just and equal society as we have known them in the U.S. for hundreds of years goes away, all bets are off. But If that does not happen, and the political, economic and social pendulum swings — as it always has in the past — from left to right to left and on and on, nonprofit leaders working with individual and institutional philanthropists can and should be assured that people still want to build stronger communities, have clean water and air, educate their kids, support their neighbors, and create a quality of life that improves with each generation. While it is challenging to see in the day-to-day, I still believe in the fundamental good and generosity of the majority of people. I still believe people will devote their time, talent and treasure to make the world a better place. Philanthropy is the fuel that feeds that engine of positive, social change.

Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.


January 2025