By Josh Birkholz
Topics:
Base & Mid-Level Giving
BWF Services: Donor Relations and Donor Experience, Annual Giving and Digital Marketing

Fundraisers understand. I see you. We have your backs. 

Over the last generation, development has been in a knock-down, drag-out fight to defend building and even maintaining sustainable programs. Generations before built communities of trust and resiliency for nonprofits. We’ve been reaping the rewards of this work with high-net-worth giving programs.   

While some of the entrepreneurial wealthy donors have given premier nonprofits transformational commitments for problem-solving, many of these mega gifts have resulted from a long game of trust-building and thoughtful donor experience management. Naïve at best, shortsighted at worst, administrations are dismantling the foundation of these programs because they only see the big gifts above the surface. 

Ladder and Hole Phenomenon 

I get it. When budgets are tight and operating margins are in the red, organizations must find ways to survive. It is also very human to strive for fairness when making cuts. This comes from a good place. But knocking down your ladder when you are stuck in a hole is not effective for escaping the hole. Yet, this happens time and again in development. 

Building a base of support is fundamental to the resilience of development programs in times of changing economic circumstances. These programs, often referred to as annual funds, membership, regular giving, or base development, are primary sources of unrestricted cash for philanthropy. While more expensive to raise than one-off major gifts, the return is still better than most of the stocks in your investment portfolio.   

Everyday donor programs build connections between individuals and the organization, fostering communities among donors, establishing norms and identities around giving behaviors, and feeding the pipeline for future major gifts. In our studies of resilient donors during economic uncertainty and disruption following the pandemic, we found the top predictors were:  

  1. Donors knew multiple people at the nonprofit.
  2. Donors were friends with other donors.
  3. They viewed giving to the nonprofit as being part of a community of giving—it was part of their identity.  

When times are tough, cutting the base and its supporting infrastructure digs your hole deeper. And with trust in the sector facing increasing scrutiny, maintaining a strong, resilient base of everyday givers is the most effective way to combat this erosion.

Rebuilding Trust 

The crisis in institutional confidence only exacerbates the challenge of base-building. Trust in business now surpasses that of nonprofit organizations in the U.S., a significant shift in institutional confidence. According to the 2025 Edelman Trust Barometer, Americans’ trust in non-governmental organizations (NGOs), which include nonprofits, was 58%, while trust in businesses was 62%. 

The decline is acutely felt in specific sub-sectors. Concerns continue in the higher education space, where confidence has struggled to recover from record lows. While Gallup’s 2025 data showed a positive rebound, only 42% of Americans expressed a great deal or quite a lot of confidence in higher education, a substantial drop from the 57% recorded in 2015. 

Has philanthropy become a thing of the rich?

While we can point to many of the reasons for declining trust, one driver of this erosion is the public perception that philanthropy is increasingly being seen as something not for “me” but for the wealthy elite.

Having worked with countless high-net-worth donors, I can tell you that generosity and altruism are the norms. While there are exceptions, the vast majority find happiness in helping nonprofits and a feeling that they did something worthwhile. We offer this to wealthy individuals and profitable organizations, and this is a good thing. But making the mega gifts our only narrative risks the sustainable inclusion of our broader community of givers. Every person deserves to experience the joy of giving. Every gift is worthwhile. 

But looking at the headlines in recent years, readers must think we have a giving problem in the United States. According to recent data from the Fundraising Effectiveness Project, total dollars raised in Q1 2025 increased by 3.6% compared to 2024 levels, led by strong performance in larger gifts. However, the total number of donors declined by 1.3% year-over-year, and retention rates slipped slightly from 18.3% in 2024 to 18.1% in Q1 2025. The smallest donor group ($1–$100), who made up 57.0% of all donors in Q1 2025, experienced an 11.1% year-over-year drop, continuing a trend of decreased engagement from small donors.

Is generosity really decreasing? If so, why is it happening?

In reality, aspects of generosity are decreasing, but they are also shifting. The count of donors giving to registered charities and the types tracked in the core data by Giving USA and FEP are declining. But numerous sources, including qualitative and research reports from Giving USA, FEP, and others, report growth in giving outside of 501(c)(3) organizations to crowdfunding, direct giving to friends and family, volunteering, and larger service gratuities. For most people, this activity is certainly considered generous.

Nevertheless, the decline in donor counts to charities is worthy of investigation. Our research is focused on a few qualitative drivers that may be contributing factors:

  1. Economic conditions: Disposable income continued its decline after a brief blip during the COVID disruption. Everyday donors have less money to give.
  2. Campaigns and impact messaging: The language used by charities effectively motivates donors looking for significant impact from their gifts. Some intrinsic value messages that might appeal more to the everyday donor (Giving is what we do. It feels good to give. It is better to give than to receive.) are seemingly on the decline.
  3. Talent model: Fundraising program leaders most commonly rise from major and principal gifts programs. Individuals focused on the base of support and annual giving programs see this trend and realize they need to shift their focus away to achieve promotion opportunities. The resulting turnover in the base of support and annual giving programs hampers deep expertise in attracting the everyday donor.
  4. Decline of religious activity: Active participants in religious organizations give more, even to secular nonprofits.  Whether from religious convictions or children growing up with philanthropy engrained as a tradition within their families, the declines in religious participation seem to be related to overall giving.
  5. Media attention: Nine-figure gifts make for better news stories.  Even in social media, wealthy individuals are often expected to be philanthropic. In contrast, the general public rarely sees themselves in the publicized stories.
  6. Consulting ecosystem: Campaign consulting, which is a big part of BWF, is also a contributing factor. There is a market for conducting large campaigns that attract transformational gifts.  I believe we do this quite well. Our success is often tied to the organization meeting its targets. If the top donors give, the organization should succeed.  If a thousand more everyday donors give, it may have little financial impact by comparison.
Can anything be done? Will donor counts rise again in the US?

There are bright spots worth investing in to turn the tide. We have chosen to make this investment and encourage others to do the same. Although economic conditions are outside of our control, we can do something about addressing the other areas:

  • Intrinsic value messaging: Any organization committed to the base of support is equipped with marketing automation software, develops segment personas, and has workflows with language strategy that continues to evolve. In our work setting up or advising these digital ecosystems, we encourage language that sparks or confirms giving values, not just instrumentality. And this language should be inclusive so all populations see themselves as belonging in the world of philanthropy.
  • Invest in talent: We are seeing a tremendous return on investment for investing in the annual fund (future major gifts, lifetime giving) that more than warrants staffing the everyday donor effectively.  We are adding consulting, technology, and service resources to this area and hope others follow.
  • Modeled philanthropy: Nonprofits should explore new ways to model generosity for the next generation. Point-of-purchase giving is one such example. The child will see the adult give the dollar and pin the little personalized sign behind the register. Donor experience events, including families, crowdfunding programs for kids, and family-based volunteer activities, are others.
  • Be the media: As nonprofit professionals, we can write more articles, issue press releases, and discuss stories of everyday donors. Your own newsletters and social channels are part of the conversation. This story is worth the attention.
  • Investment: Companies like BWF that serve the nonprofit marketplace, along with other great firms and tech companies (like the Giving Institute), can choose to invest in solutions for the everyday donor. We are doing so by building up service offerings in annual giving, digital ecosystems, engagement evaluation, authentic video, communications, and technology.

By investing in the base of support we choose to rebuild trust. We actively choose to change the narrative. We believe giving is a great source of happiness for the giver. We believe communities of givers can make transformational change for good. 

The Tools Finally Exist 

To equip organizations with a practical path forward, we’ve published resources that cover the core strategies needed to invest in the everyday donor’s experience. Over the last year, we’ve published a series of papers to equip organizations to build strong development programs to embrace and advance the everyday donor. We now have the tools to provide each donor with a personalized giving experience. The whole donor journey can be orchestrated to build a meaningful relationship of mutual benefit for the donors. The is a rabbit hole you want to go down. We are achieving reversal in donor declines and meaningful increases from our work with programs. Our road map is here for all to see. 

It All Comes Down to Choice 

As a sector, as a leader, and as individuals working in this noble profession of development, we can choose the narrative. We can choose to believe the everyday donor matters. We can commit to understanding the full picture of ROI for our programs. We can elevate colleagues in everyday giving just like we do great major gift officers. We can socialize the joy of giving as a value and connecting feature of our communities. It is not only impact. It is purpose. And this purpose can be shared. 

This is why we at BWF have made the investment in the everyday donor. Our groundbreaking EDX division shows we are putting our money where our mouth is. We do this because it is the right thing to do. We know what we do works, so we feel it is our obligation and privilege to help.   

If you are here, I know you have made this choice, too. Thank you! Together, we can reclaim giving and generosity in all its forms. We are the community that believes in everyday donors. And we choose to defend them. 

At BWF, we stand ready to assist you with your donor engagement strategy. Please reach out to sales@bwf.com. It’s a privilege to help.