Generosity among Italians on the rise, yet number of prospective donors decreases
In the ever-evolving landscape of philanthropy, a recent study conducted by Emotional Marketing and Atlantis Company has shed light on some intriguing trends. The research, titled "Donors, Donations and Corporate Social Responsibility 2023", was carried out in the context of a setting where trust has been eroded and funding was provided for poverty reduction and research in this context.
The findings of the research are significant. Despite a sharp drop in potential donors, there has been an increase in regular donors and average donation amounts. This increase is observed despite the aforementioned drop in potential donors, indicating a resilience in philanthropic giving.
The study attributes this trend to various factors. One such factor is the growth in donor-advised funds (DAFs). The adoption of DAFs has expanded substantially in recent years, enabling individuals and corporations to make more flexible, efficient, and tax-advantaged donations. This shift in giving vehicles has attracted new donors by simplifying the process and allowing more control over philanthropic impact.
Another key factor is the rise in corporate social responsibility (CSR) commitments. Companies are becoming more engaged in social responsibility programs, which has led to a 9.1% year-over-year increase in corporate giving in the US in 2024. CSR has evolved from a mere philanthropic act to an integrated element of business management that influences donor behavior and engagement.
The study also highlights the emergence of new donor demographics and shifting priorities. High-net-worth donors and corporations are embracing philanthropy with a focus on transparency, strategic impact, and sustainability, driven by societal expectations and values, particularly among younger generations.
Economic factors also play a role. Though inflation and economic uncertainty exist, overall growth in financial assets among donors and corporations has allowed increased giving levels, supported by strong market performance in foundation assets and corporate profits.
In sum, the doubling in the percentage of potential donors is linked to more accessible, strategic giving vehicles like DAFs, enhanced corporate social responsibility efforts, stronger economy-related capacity, and a shift in donor motivations toward impact-focused, transparent philanthropy. This research provides valuable insights into the evolving world of philanthropy and offers a roadmap for organisations seeking to engage with donors effectively.
- Despite the drop in potential donors, there has been an increase in corporate giving in the US, a trend attributed to the rise in corporate social responsibility commitments in the business sector.
- Economic factors, such as the growth in financial assets among donors and corporations, have allowed increased giving levels, providing a significant boost to philanthropy, especially towards causes that prioritize transparency, strategic impact, and sustainability.
