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Summer 2006

12 Key Trends and What They
Mean for the New Giving Landscape

  1. Racial and ethnic diversity will increase in almost all communities. This trend changes the shape of the potential donor pool, requiring increased skills in mapping community assets and broad-based donor initiatives to engage diverse donor populations, each with its own traditions of giving in a community.

  2. Wealth appreciation in virtually all communities of difference will become significant. Adult, middle-class white men will become a smaller slice of the high-wealth pool as more African-Americans, Asian-Americans, gays and lesbians, Hispanics, women, young and the self-made people build wealth, increasing the capacity to create philanthropic capital within communities often thought of as "needy."

  3. Concept of endowment will face continuous pressure as new donors enter the system. Non-endowed giving options will compete with traditional endowed options. Growth of non-endowed options may put increasing societal pressure on traditional funders concerning perpetuity and payout.

  4. Interest in giving internationally will increase among all types of donors. More money will flow from U.S. communities to people and projects around the globe, creating an opportunity for foundations and others to become resources for local donors that need assistance in finding projects and completing transactions.

  5. Among foreign born living in the U.S., sending money home will increase significantly. The huge diaspora giving pool, approaching 60 percent of some local foreign-born populations, represents $50 to $100 billion a year. This phenomenon could change our understanding of who is a donor.

  6. Flash giving engages and empowers many donors and may become the primary model of giving for many. Triggered by high media attention to international conflict, famine and natural disasters, flash giving has the potential to change the landscape of giving. Opportunity comes in showing how flash and long-term sustained giving come together in a complementary whole.

  7. Donors will be increasingly attracted to self-formed learning and giving communities or gatherings. The growth of these groups reflects the relationships more donors are looking for in their giving. These passionate, value-driven groups will increase among young inheritors, social progressives, gays and lesbians and the religious of all denominations.

  8. More donors will take care of their giving with internet giving portals. This trend could provide charities with better access to donors but make it harder for those without a web presence. Low-tech giving vehicles like giving circles, gatherings and small family foundations may find opportunities in internet portals for better donor service and transaction management.

  9. A more mobile population of all ages could diminish the appeal and incidence of place-based giving. With more out-migration from rural areas and frequent "caravanning" among retirement-aged adults, a need increases to build long-range community capacity. There is opportunity to identify and engage potential donors among mobile retirement-age adults who may spend only part of a year in a place.

  10. Giving by faith-based donors — long acknowledged as the majority source of giving in the U.S. — will grow among all religions and become more complex. Faith-based giving has the potential to divide or enrich philanthropy as communities work though the difficult issues of faith and philanthropy.

  11. Donor demand for a streamlined, 24-7, customized interface will push donor-serving business operations. Virtually all donor initiatives will be compelled to serve donors anywhere and at any time, which may require networks to handle back office needs for serving donors.

  12. People will increasingly expect to "see themselves" in the leadership of the institutions to whom they give their money, time or allegiance. The face of the giving landscape will need to change, with the composition of boards and staffs becoming increasingly diverse.

Bonus: All the trends above, now evident among mature adults, will become more extreme as Generation X and Generation Y assume leadership. It's a whole new world!
The Donors of the Future Scan was commissioned by New Ventures in Philanthropy at the Forum of Regional Associations of Grantmakers and the Council on Foundations Community Foundation Leadership Team. For more information, go to givingforum.org/dof.


More Information from the Summer 2006 Edition of Giving Forum

Thank you to the sponsors of this issue of Giving Forum:
$5,000 Sponsor
$5,000 Sponsor
$1,000 Supporter West Central Initiative

© Copyright 2006 Minnesota Council on Foundations
Reproduction in any form without the written permission of the publisher is prohibited.
 

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