4).
The COVID‐19 pandemic accelerated the widespread use of digital platforms across the nonprofit sector for fundraising purposes. Fundraisers need to understand the difference between commercial and nonprofit entities that provide these digital platforms (Bernholz 2020b). The abrupt change to a virtual format highlighted issues of data privacy for donors and beneficiaries as well as the importance of digital access. Fundraisers increasingly must have essential – if not advanced – skills in digital fundraising perhaps acquired through academic programs in the field.
Fundraising and the Economic, Social, and Political Climate
Charitable giving is affected by economic growth and recession, social well‐being and unrest, and the overall dynamic of political processes and institutions. Nonprofit organizations experience these changes daily and may be challenged due to their particular context.
Economic Climate
Analysis shows changes in giving are closely tied to economic changes, especially in household wealth, household income, and for foundations, stock market performance. When adjusting for inflation, giving usually increases in nonrecessionary years and slightly contracts in recession years (Rooney and Bergdoll 2020).
The COVID‐19 pandemic unevenly impacted business, employment, health, and the nonprofit sector. People of color suffered disproportionately in the United States revealing numerous systemic barriers to economic opportunities and the precariousness of entire communities.
The coming transfer of wealth and new wealth will render Gen X and Millennial generations the most significant philanthropists who will contribute to reshaping norms in giving and engagement (see Chapter 31) (Johnson Center 2017).
Social venture philanthropy and social enterprises have grown considerably and often serve as alternative revenue streams to traditional fundraising for nonprofits. Social enterprise, LLCs, BCorps, and social cooperatives can be attractive opportunities to operate in the marketplace as businesses using revenues to advance social goals. These hybrid organizational forms are developing across the globe and present a new way to mobilize innovative ideas and resources to contribute to long‐term societal challenges. However, to enter this “Frontier of Philanthropy” – described by Salamon (2014) – requires significant knowledge and recognition that traditional philanthropy and government support are needed for success. Further, “market‐based” solutions need to be viewed as appropriate for the social purpose mission of the organization. Fundraisers continually need to be aware of the potential pitfalls associated with these vehicles.
Social Climate
The recent social climate has been characterized by widespread dissatisfaction. The persistent and unresolved issues of healthcare, education, poverty, greater inequalities, and racism have refocused the attention of American society. Philanthropy has been both challenged by and responsive to these issues.
Philanthropy has historically been associated with wealth of key individuals like Carnegie and Rockefeller from the Industrial Revolution or Gates and Bezos of the tech revolution. However, philanthropic action has been carried out in a multitude of ways by diverse members of society from the earliest days. Individuals crossing color or ethnic lines to save others from drowning or fire. Women raising funds for mining families, for illnesses such as tuberculosis, or for basic school supplies for classrooms. Minority veterans, doctors, and community members raising money for basic healthcare for their communities. These examples demonstrate that philanthropy has engaged individuals at all levels of society who have given “time, money and moral concern to benefit others” (Moniz 2020, para 5).
Individuals across the country and around the world are envisioning new ways of expressing generosity and care for others. Fundraisers can look at this as an opportunity to include these diverse communities and philanthropic practices in their own approaches for support.
Political Climate
Democracy is being scrutinized through questions about institutions, processes, and division among people. Philanthropy's unique role in prompting and developing civic engagement, advocating for change, and amplifying unheard voices is part of this discussion. Philanthropy and nonprofits increasingly are being asked to provide basic services in healthcare, education, environmental action, and more (Bernholz 2020c). What is the role of philanthropy and where are the limits? Bernholz asks whether it is time to “re‐imagine philanthropy.”
There are changing demographics of who is giving with more reliance on the super wealthy. Recent examples such as Purdue Pharma and Jeffery Epstein point to a continuing concern with tainted money and tainted donors within the practices of philanthropy (Johnson Center 2020). Critiques of “big philanthropy” from mega donors and the ultra‐rich have raised concerns of decreased participation by donors with less wealth. Yet, research shows that even in the unique environment of both a global pandemic and an economic downturn, most households initially maintained both direct and indirect giving (Mesch et al. 2020). Regular people gave in various ways, including locally focused efforts and initiatives by younger generations and communities of color gathering people together to help one another, practicing unconventional generosity such as buying locally and spreading the message about safety measures on social media.
Fundraisers must remain faithful to the organization's mission, be creative, and engage board members. Connecting the nonprofit's work with the broader social issues and systems will help fundraisers identify a larger pool of donors in the future. Most of all, fundraisers must remain positive. Philanthropy is about hope for the future and fundraising is an optimistic profession that serves society well, especially in times of distress.
Opportunities for Philanthropy
Conditions including climate events (fires, floods), the pandemic, social movements, and economic crises require fundraisers to respond with agility steeped in solid understanding of their organization's context. This section describes three changes in the relationships among donors, nonprofit organizations, communities, and beneficiaries.
One change is a new appreciation for the assets of communities and their unique qualities. For example, recent studies on rural philanthropy highlight the importance of trust and common values in uncovering hidden needs in rural Iowa. Or, in New Mexico, research found that place and people who are rooted in local history and culture play a key role in devising partnerships. The local participants honored the process of sharing and equalizing power and cultivated a sense of mutual respect among all participants – donors and recipients alike (Campbell University 2020).
A second change relates to how the pandemic caused rapid adaptation in ways of giving. Giving online increased; other giving was directed through direct transfer platforms. Donor‐advised funds gave more in a record amount of time. Foundations also changed funding restrictions and reporting requirements to reach vulnerable populations and to assure that nonprofits survived the pandemic and economic disruption. This demonstrates that quick pivots are possible.
A third change is some funders' embrace of trust‐based philanthropy, which includes explicit attention to community voices, funding for community‐driven projects, and self‐determination for community members, to decide what is best. This approach acknowledges the imbalance in funder‐grantee relations and seeks to address mistrust in institutions and those in power. It involves new processes, sharing, humility, and deep learning to help communities mobilize efforts from the bottom up (Wong and McGrath 2020).
The turbulent times have created a context
