Tips for Year-End Giving: Be Proactive, not Reactive
Tomorrow is Giving Tuesday, and your inbox will likely be full of requests for support from many worthy organizations.
This is a critical time for nonprofits. According to fundraising software OneCause, 50% of nonprofits receive most of their annual donations in the last three months of the year. And, 30% of all annual giving happens in December. In 2023, Giving Tuesday raised over $3.1 billion in the U.S.
As a nonprofit-centered philanthropist, hopefully, you are approaching the end of the year feeling great about the impact and communities your philanthropic dollars have supported this year and are already looking ahead to your budget and goals for next year.
Most of JH Philanthropy’s clients work from clear philanthropy budgets and giving priorities, so there isn’t a holiday season scramble. Many donors start with an 80/20 approach: dedicate at least 80% of their giving budget to their core focus areas and 20% to ‘non-core’ community and relationship-based causes. If you follow this model, you are likely moving into the end of the year with your 80% core-giving fully allocated and a small percentage of your 20% non-core giving available to support family and friends in their end-of-year appeals.
But if you’re catching up, don’t worry—here are a few tips to guide you in your end-of-year giving.
Think About Where You’ve Been Engaged: Consider organizations you’ve volunteered with or engaged with over the past year. What resonated with you? What causes or groups would you like to deepen your relationship with next year? Year-end giving can be a great way to say “thank you” or set the stage for future involvement.
Reflect on Your Learning Goals: Philanthropy isn’t just about giving; it’s about learning and growing. Use your year-end review to identify areas where you’d like to expand your knowledge or impact. This could help shape your plans for next year.
Evaluate Organizations Holistically: When reviewing organizations for your support, we suggest looking at four key aspects:
Program Effectiveness: Are they achieving meaningful results?
Leadership Capabilities: Does the team inspire confidence?
Financial Solvency: Are they managing resources responsibly?
Match with Your Goals: Do their programs align with your vision for impact?
Find out if there is a cut-off date: If you are making a donation through your Donor Advised Fund or a foundation administrator, make sure you know the cut-off date to make your donations count for 2024!
Remember, year-end giving is a chance to align your philanthropy with your values while also honoring relationships and the community. It’s not just about the dollars—it’s about making meaningful connections and setting the tone for the year ahead.
Happy giving!