How Magnified Giving Combats the Decline of the “Everyday Donor”

June 17, 2024 | Written by Branden Waggoner

Victoria Vrana recently wrote a thought-provoking article in the Chronicle of Philanthropy about the worrying decline in “everyday donors” and offered some solutions to address it. Vrana highlights that the percentage of households donating to charity has dropped significantly - from two-thirds to less than half - posing a serious threat to both the nonprofit sector and our democracy. This decrease is concerning because small donations are crucial for sustaining local nonprofits, which play essential roles in their communities.

There are many reasons behind this decline. Economic challenges, changes in tax laws, and shifting priorities among younger generations all play a part. Additionally, the rise of crowdfunding and direct giving methods means people might be contributing outside traditional charity structures. Whatever the reasons, the impact is clear: fewer individual donations mean less support for the many small nonprofits that rely on these funds to serve their communities and meet the needs of vulnerable populations.

Youth Philanthropy Program participants present grants to their chose community nonprofits after learning how to support local organizations with their time, talent, and treasure.

At Magnified Giving, we see this challenge and are dedicated to tackling it by empowering youth to become lifelong philanthropists. By involving students in philanthropy from a young age, we aim to bridge the gap left by the decline in individual donations and nurture a new generation of donors who understand the importance of giving back. Our Youth Philanthropy Program offers hands-on learning experiences in philanthropy, leadership, and community service, allowing students to research local nonprofits, learn about their missions, and advocate for their causes.

Vrana’s article emphasizes the strong link between philanthropy and civic engagement, revealing that individuals who donate or volunteer are significantly more likely to vote. This connection shows the vital role that philanthropy plays in nurturing a vibrant, participatory democracy. By engaging young people in philanthropy early on, we aim to instill lifelong habits of giving and civic participation. Our program empowers students to make meaningful contributions to their communities through their time, talent, and treasure, reinforcing the idea that even small donations and can lead to significant change.

Youth participating in Magnified Giving present a grant check for $1,000 to Seeds of Hope, just one example of a small nonprofit addressing the relevant needs in the heart of their community that received support through the Youth Philanthropy Program. Seeds of Hope meets the needs of foster, kinship, and adoptive families in Troy, OH, and Miami County.

Vrana points out that the decline in donations disproportionately harms small nonprofits, which are often at the heart of their communities. These organizations create relevant solutions to local problems, and their loss would be deeply felt. By supporting and educating young donors, we help sustain these essential nonprofits. Through our program, students see firsthand how their contributions, no matter their size, can make a real difference. They learn that philanthropy isn’t just about money; it’s about time, talent, and treasure.

To wrap up our thoughts, the decline in everyday donors is certainly a challenge, but it also offers an opportunity for incredible solutions. Magnified Giving is dedicated to empowering the next generation of philanthropists, ensuring that the spirit of giving remains strong and that our communities continue to benefit from the generosity of everyday donors. We want to thank Victoria Vrana and the Chronicle of Philanthropy for bringing these issues to the table and creating conversations.