by Lauren Steiner
As individual giving shifts, institutional funders are more important than ever.
If you’re leading a fundraising program right now, chances are you’ve felt the headwinds. The Fundraising Effectiveness Project (FEP)’s most recent report confirms what many nonprofit leaders are seeing:
- Donors are down 8.5% year-over-year
- Total dollars dropped 2.6% in 2023 https://afpglobal.org/FundraisingEffectivenessProject
This isn’t a post-pandemic anomaly. It’s a signal. Individual donor giving is softening, and acquisition is getting tougher.
Meanwhile, Foundation Giving Is Holding Strong—For Now
According to Giving USA 2023, foundation giving totaled $105.2 billion in 2022, representing 21% of total giving—the highest share ever recorded. (https://givingusa.org/giving-usa-2023-foundation-giving-remains-strong/)
- Foundation giving has steadily grown over the past decade
- It has proven to be more resilient during downturns
- Foundations tend to step up during crises
But let’s not oversimplify.
Foundations Do not Equal a Silver Bullet
Even as foundations provide stability, they’re not immune to economic conditions. The current volatility in the global markets may impact endowments and payout rates in the near future. And in Washington, the Charitable Act—which would reinstate a universal charitable deduction—is under active discussion and could reignite individual giving. (https://www.afpglobal.org/news/charitable-act-introduced-congress)
In short: this is a complex moment.
Fundraising professionals aren’t just riding it out—they’re adapting, innovating, and working hard to read the trends.
What Nonprofits Should Do Now
If you’re not already investing in institutional relationships, now is the time to rebalance your funding mix. That doesn’t mean writing more grant proposals—it means building a deeper, more resilient institutional fundraising strategy.
Some Practical Steps:
- Prioritize cultivation between cycles, not just application writing
- Track funder shifts in response to federal policy and economic trends
- Prepare for evolving expectations—like collaborative funding, unrestricted gifts, and longer-term partnerships
Philanthropy Is Responding to the Moment
In response to looming federal cuts, some of the nation’s largest foundations—like the Ford Foundation and Packard Foundation—are exploring payout increases above the legal minimum to meet urgent nonprofit needs. (https://www.philanthropy.com/article/amid-federal-budget-cuts-some-foundations-consider-upping-their-payouts)
It’s not business as usual.
And that’s a call to action.
Bottom Line
Fundraising effectiveness is no longer just about recovering lost ground—it’s about future-proofing. Individual giving may rebound. Institutional giving may shift. But one thing is certain: nonprofits that diversify and deepen their funding strategy will be better positioned for what’s ahead.
If you’re not sure where to start, we’re here to help.
This blog has been re-purposed from Lauren Steiner’s LinkedIn newsletter. For more insights from Lauren, subscribe to her newsletter, Grant Seeker’s Edge.
