Everyone has been affected by the last several years of rising inflation, from everyday workers to large charitable organizations. Inflation is also affecting grant trends. No matter what you may have heard, people are still giving! However, as is the case every year, the methods and avenues of giving are always evolving and changing, and if you’re not up-to-date on the latest happenings in the charitable sector, it can be easy to get left behind. Nimble organizations adjust to changes and find ways to succeed, and you can be one of them! Especially in an election year, it is crucial to stay on top of current trends and to identify the right funders for your organization.

Even if you don’t have a full-time grant writer to address these ever-changing issues, for many organizations, hiring a grant consultant can be a much better fit. The team at Millionaire Grant Lady and Associates think and write about these issues every day so that you don’t have to! Our goal is to give you back as much of your time as possible so that you can devote yourself fully to helping people in your community. Get in contact with us today if you would like some expert advice and partnership to win grant funding in this new era of inflation.

If you’re confused by the current giving landscape, current research indicates trends in giving that nonprofits need to understand to fully capitalize on grant opportunities:

• Giving is Up! However…
• Religion Stays at #1, but…
• Human Services on the Rise
• For the Discerning Nonprofits

 

Inflation Trend 1: Giving is Up! However…

In raw numbers, charitable giving increased in 2023 to $557.16 billion (2023 Giving USA Report). This is the good news for nonprofits! The bad news is that when you adjust for inflation, giving actually decreased from its record-high mark in 2021.

Giving by foundations largely follows stock market trends, as affluent donors invest and allocate resources based on their larger portfolios. Foundations, in general, are required to give 5% of their total assets. So, when the stock market goes up and their assets increase, foundations are required to give more. Unfortunately, this higher giving did not outpace inflation.

The slightly better news for nonprofits is that the decline in inflation-adjusted giving was only 2.1% last year, compared to 8.4% in 2022 (2023 Giving USA Report). It is possible that giving may stabilize in the coming years, rather than fluctuating wildly as it has since the onset of the COVID-19 pandemic.

It is also important to remember that unlike the stock market, where the value carries over from year to year and goes up or down based on that value, foundation giving resets each year at 0. No matter what other issues may be at play in the stock market or inflation and what struggles nonprofits may be facing, every dollar given in that $500+ billion was a new gift, which means charitable giving isn’t going away anytime soon.

Inflation didn’t stop Millionaire Grant Lady and Associates from having an incredible 2023, in which we raised over $8.2 million for causes ranging from health care to homelessness to other human services, like programs for children, youth, and veterans. Given the trends we are seeing, there is no reason we can’t have an even better 2024, and your organization could be a part of our success. Contact us to learn how we can help you multiply funding for your mission.

 

Inflation Trend 2: Religion Stays at #1, but…

As has been the case for decades, religion remains the category with the highest giving, but it accounts for a fraction of the overall share compared to previous years. In 1983, 62% of charity was directed toward religion. Today, it’s a mere 24% (2023 Giving USA Report). Giving has diversified immensely in recent years, opening the doors for more types of nonprofits to receive funding. Issues that may have been previously ignored by larger foundations have been thrust to the forefront, and they are eager to invest in underserved communities. On that note…

 

Inflation Trend 3: Human Services on the Rise

For the first time, human services has supplanted education as the category with the second-highest giving, though they remain essentially even at 14% (2023 Giving USA Report).

Human services organizations have been some of the nonprofits most affected by inflation, especially those providing food, gas, or other basic goods to those in need. The fact that giving toward these organizations has increased is heartening, as human services organizations often care for the neediest and most vulnerable among us. Unfortunately, when adjusted for inflation, the perceived gain is not much of an actual gain, and many of these organizations are in desperate need of funding and investment.

Foundations are aware of this reality and may prioritize nonprofits doing work in these areas. For nonprofits to access this funding, they will have to first make sure they are aware of funders who could potentially fund them. Additionally, many nonprofits are finding themselves more in need of funding, so there is a lot of competition for foundation grants. If you are looking for an expert to help you raise more money for your mission, contact Millionaire Grant Lady and Associates today.

 

For the Discerning Nonprofit

Many foundations received a boost from the stock market in 2023 and will potentially distribute these gains in 2024 and beyond. While it remains important to diversify income and generate giving from numerous sources, it is also true that foundation giving tends to change slowly and react less quickly to certain trends. This often makes foundation giving a more reliable source of funding than corporate or individual giving. Shrewd nonprofits will take advantage of this potential and tap into this source of funding that can lead to large increases in funding that repeat year after year.

If you want to increase your funding and succeed despite the challenges, schedule a call with us today. With the right strategy and expertise from a qualified grant consultant, you can find the funders and foundations who are excited to invest in your mission and programs so that you can continue to make an impact through your mission-driven work.