State of Good for Dec 29, 2025
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week
Donors & Industry Indicators
The Year-End Giving Paradox: Conflicting Signals Point to Fundamental Shift
As we close out 2025, the nonprofit sector faces a striking contradiction. Two major surveys released this week paint dramatically different pictures of American generosity. The Risk Radar Report from Church Mutual Insurance Company found that 75% of Americans plan to maintain or increase their charitable giving. Yet a Fortune poll reveals that only 18% of Americans who have already donated plan to give again before year’s end, with just 6% of non-donors planning first-time gifts.
This isn’t just statistical noise — it’s a signal of deeper changes in how Americans think about charity. The data suggests we’re seeing a split between intention and action, with donors expressing goodwill but holding back on actual contributions.
What This Means for You:
- Don’t rely on year-end giving to match previous years — the usual patterns may not hold
- Focus retention efforts on your 18% of active repeat donors who plan to give again
- Consider that donor sentiment and donor behavior are increasingly disconnected
Major Donors Show Signs of Life Despite Lingering Uncertainty
While mass-market giving faces headwinds, major donors are beginning to increase their giving according to new analysis from Hallett Philanthropy. Yet uncertainty continues to shape their decision-making, leading to two distinct behavioral patterns emerging in the major gift space.
The analysis points to increased introspection among major donors about their giving priorities and impact. This self-reflection is creating longer decision cycles but potentially larger gifts when commitments are made.
What This Means for You:
- Prepare for extended cultivation periods with major donors as they take more time to decide
- Build content and engagement strategies that address donor uncertainty directly
- Document and communicate impact more thoroughly than ever before
Technology Adoption Reaches Tipping Point
According to NonProfit PRO’s year-end statistics, technology adoption has become a defining factor in nonprofit performance this year. Meanwhile, the Fast Forward survey of 200 nonprofits found that 30% are now using AI, but face significant funding constraints for scaling these technologies.
The integration of data analytics into philanthropic decision-making is reshaping how donors evaluate organizations. Transparency and measurable outcomes have moved from nice-to-have to essential.
What This Means for You:
- Budget specifically for technology implementation and scaling in 2026
- If you’re not in the 30% using AI, you risk falling behind in efficiency and donor engagement
- Invest in data collection and presentation tools — donors increasingly expect sophisticated impact reporting
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Why Donors Give?
Generational Differences
Gen Z gives to 4.5 causes on average. Boomers give to 8.2. What does this tell us?
Different generations don’t just give different amounts, they give for fundamentally different reasons and through different channels.
Baby Boomers (born 1946-1964) give out of loyalty and obligation. They respond to direct mail, value institutional reputation, and maintain long-term relationships with organizations.
Gen X (1965-1980) values efficiency and wants proof. Show them impact data, minimize overhead, demonstrate effectiveness.
Millennials (1981-1996) give to causes aligned with personal values. They expect to engage beyond the checkbook—volunteering, advocating, sharing on social.
Gen Z (1997-2012) gives reactively to crisis and movements. They discover causes on social media and give in the moment, often in smaller amounts to more causes.
- Segment communications by generation, one message doesn’t fit all
- Offer engagement pathways beyond giving for younger donors
- Don’t abandon direct mail for Boomers while building digital for Gen Z
The future of fundraising isn’t choosing one generation over another—it’s building systems that serve all of them.
Research Citation: Blackbaud Institute Generational Giving Report, 2024
💡 Pure Charity’s Fundraisers make it easy to track donations for specific campaigns aligned with Generational Messaging.
What Changed from Last Week?
REMINDER! USPS Rule Change Threatens Year-End Gift Processing
A new USPS rule could affect how mailed donations qualify for 2025 tax deductions.
With processing delays and new documentation requirements, organizations risk donor frustration if year-end gifts don’t qualify for intended tax benefits. Here’s how one nonprofit explained it to their donors.
Why It Matters: Tax deductibility remains a significant motivator for major donors. Processing delays that push gifts into the next tax year can damage donor relationships and affect planned giving calculations.
Your Move:
- Communicate new mailing deadlines clearly and early
- Promote digital giving options with immediate tax receipts
- Consider hand-delivery or courier services for major gift solicitations
💡 Pure Charity’s Checking Processing services and receipts will reflect the USPS Postmark that follows this rule change.
GivingTuesday 2025 Breaks Records, But the Pattern Is Changing
The Donor-Advised Fund Research Collaborative released groundbreaking data showing explosive growth in DAF assets and giving throughout 2024. More significantly, they’ve introduced new methodologies for calculating payout rates that provide clearer insights into actual giving patterns.
Why It Matters: DAFs now represent a massive and growing share of philanthropic dollars. The new payout calculation methods reveal that DAF giving may be more robust than previously understood, countering criticism about funds sitting idle.
Your Move:
- Update your DAF outreach strategies with the new data points
- Train staff on the nuanced payout calculations to better engage DAF holders
- Consider creating DAF-specific giving opportunities with longer time horizons
Bottom Line
This week’s takeaway:
The contradiction between donor sentiment (75% plan to maintain/increase giving) and donor behavior (only 18% will give again) reveals a fundamental shift in how Americans approach charity. Success in 2026 will require adapting to this new reality where good intentions don’t automatically translate to donations.
Three actions for this week:
- Communicate new year-end deadlines immediately: Every day of delay could cost you donations
- Segment your donor outreach by generation: One-size-fits-all messaging is leaving money on the table
- Document your AI and technology needs: Funding for scaling will be competitive in 2026
💡 Pure Charity can support your 2026 Fundraising Strategies. Reach out and we can discuss AI Tech opportunities.
Good In Action
When Dignity Meets Innovation
Wade Milyard spent his career as a canine officer with the Frederick Police Department in Maryland. But retirement brought an unexpected calling. After responding to countless calls involving homeless individuals during his police career, Milyard couldn’t shake one observation: clean clothes weren’t just about hygiene, they were about human dignity.
His response? Convert an old bus into a mobile laundry unit. Now, Milyard drives his laundry bus through Maryland, providing free laundry services to homeless individuals. Each load represents more than clean clothes — it’s a chance for someone to walk into a job interview, medical appointment, or family gathering with confidence.
The Lesson: Innovation doesn’t require million-dollar budgets or cutting-edge technology. Sometimes the most powerful solutions come from deeply understanding an overlooked need and meeting it with creativity and compassion. What basic dignity need in your community goes unaddressed? That’s where your next breakthrough might lie.
💡 While different from this initiative, a shout out to our friends at Laundry Love for serving hundreds of communities with clean clothes every year.