State of Good for Jan 5, 2026

by | Jan 5, 2026

Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week

Donors & Industry Indicators

Affluent Giving Rises as Tax Changes Loom

 

The philanthropic landscape is experiencing a notable shift. Affluent households are increasing their charitable donations across the country, with Atlanta emerging as a bellwether market for this trend. According to the latest Giving USA report, charitable giving from high-net-worth individuals rose 6.3% — a significant increase that outpaces inflation.

This uptick comes at a pivotal moment. Major tax reform enacted in July 2025 will introduce changes to charitable deduction caps when provisions take effect later this year. The timing suggests many donors may be accelerating their giving ahead of these changes.

What This Means for You:

  • Schedule major gift conversations now while donor sentiment remains positive
  • Prepare gift acceptance policies for potential year-end acceleration of planned gifts
  • Consider offering multi-year pledge options to capture current enthusiasm while providing donors flexibility

The 91% Retention Rate You Should Know About

 

While the sector celebrates increased giving from affluent donors, there’s an equally important story in donor retention data. Organizations using auto-renewal for monthly and annual giving programs are seeing retention rates of 91% — dramatically higher than standard one-time donor renewal rates that hover around industry norms of 40-45%.

This gap represents both a challenge and an opportunity. The data shows that when donors commit to recurring gifts with automatic renewal, they’re more than twice as likely to continue their support year over year.

What This Means for You:

  • Audit your recurring giving program — if you don’t have auto-renewal, make it a Q1 priority
  • Calculate the lifetime value difference between one-time and recurring donors to build your business case
  • Test converting your strongest one-time donors to monthly giving with a specific campaign

💡 Pure Charity’s Fundraisers & Sponsorship Features make it easy to create and track recurring giving programs. 

Economic Headwinds: Mixed Signals for Fundraisers

 

This week’s economic indicators present a complex picture. Consumer sentiment dropped 4.9% to 51, while personal savings rates fell 2.4% to 4%. The S&P 500 declined 1.1% to 6,858.47. However, the Federal Funds Rate dropped 4.1% to 3.72%, potentially easing borrowing costs.

These mixed signals suggest donors may be feeling less confident about their financial futures, even as lower interest rates could free up some disposable income. The combination of rising affluent giving with declining consumer sentiment points to increasing concentration of philanthropic dollars among wealthier households.

What This Means for You:

  • Segment your donor communications more carefully — affluent donors and middle-income donors are experiencing different economic realities
  • Consider offering more flexible payment options for pledges
  • Monitor your donor retention metrics weekly rather than monthly to catch early warning signs

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Why Donors Give?

Social Proof & Peer Influence

 

Did you know that seeing others give can increase donation likelihood by 30%?

We like to think our charitable decisions are purely personal, but research tells a different story. Social proof, the tendency to look to others when deciding how to act, is one of the most powerful forces in philanthropy.

When donors see that people like them are giving, they’re significantly more likely to give themselves. This isn’t peer pressure; it’s social validation. We look to others to understand what’s appropriate, expected, and meaningful.

A landmark study found that simply showing donors that others had contributed increased giving by 30%. The effect was strongest when the “others” were similar to the potential donor—same community, same age group, same connection to the cause.

Try This:

  • Display donor counts and amounts: “Join 2,847 donors who gave this month”
  • Use testimonials from relatable donors, not just major gift stories
  • Create giving challenges where donors can see real-time participation
  • Feature donor walls or recognition that shows breadth, not just depth

The bottom line: donors give to organizations, but they’re influenced by people.

Research: Shang & Croson, “A Field Experiment in Charitable Contribution”

 

💡 Pure Charity’s Fundraisers make it easy to for organizations to share Social Proof on your website via our API services

What Changed from Last Week?

Tax Reform Implementation

 

The Change: The tax reform provisions affecting charitable giving are now rolling out. Modifications to charitable deduction caps will be implemented this year, affecting how donors calculate their tax benefits.

Why It Matters: This acceleration changes the fundraising calculus for 2026. Donors who might have spread gifts across multiple years may now consolidate giving to maximize deductions under current rules. Organizations that understand these dynamics can position themselves to capture accelerated gifts while helping donors navigate the new landscape.

Your Move:

 

  • Option 1: Launch a “Give Now, Designate Later” campaign allowing donors to make gifts in 2026 while specifying future use
  • Option 2: Partner with financial advisors to offer educational sessions on tax-efficient giving strategies
  • Option 3: Create donor-advised fund options to help supporters maximize current deductions while maintaining giving flexibility

Bottom Line

This week’s takeaway:

The philanthropic sector sits at an inflection point. Affluent donors are increasing their giving just as tax policies shift and economic indicators send mixed signals.

Organizations that move quickly to capture current donor enthusiasm while building sustainable recurring revenue streams will be best positioned for the changes ahead.

Three actions for this week:

  1. Schedule conversations with your top 20 donors to discuss their 2026 giving plans in light of tax changes
  2. Audit your monthly giving program’s auto-renewal functionality, aim for that 91% retention rate
  3. Update your gift acceptance policies to handle potential increases in non-cash gifts as donors seek tax efficiency

💡 Pure Charity can support your 2026 Fundraising Strategies.  Reach out and we can discuss.

Good In Action

Travel writer Rick Steves stepped in to save a community hygiene center for homeless residents that was facing imminent closure. The center, which provides showers, laundry facilities, and basic hygiene services to those experiencing homelessness, had exhausted its funding options when Steves learned of its plight.

His response was immediate and decisive, writing a check large enough to keep the doors open for another year while the organization develops sustainable funding. Steves cited his travel experiences and the biblical principle of “Love thy neighbor” as motivation, noting that proximity shouldn’t determine compassion.

The Lesson: Sometimes the most powerful fundraising tool is a clear, urgent need combined with a donor who deeply understands your mission. Steves wasn’t cultivated through a years-long major gifts program, he responded to an immediate community crisis because the need aligned with his values. While we can’t count on philanthropic rescue, we can ensure our case for support is so clear and compelling that when the right donor encounters it, the decision to give becomes obvious.

💡 Have a Good In Action story that you would like to share?  Respond to this email and share the details.