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In our beloved Fayette County, the spirit of giving has always been a cornerstone of our community. Whether it’s rallying behind local projects or supporting a neighbor in need, our collective generosity shapes the fabric of our daily lives. As the landscape of philanthropy evolves, it’s essential to understand these changes and how they impact our rural community. We rely on a few good sources to make note of and help us understand these trends and our goal is to share this information with you today. You can use this information to guide your own charitable endeavors and help you understand why the need is so great in our hometown.

Shifts in Charitable Giving

Recent years have presented unique challenges and opportunities for charitable giving. The COVID-19 pandemic, movements for social justice, economic fluctuations, and rising inflation have all influenced how and why people donate. According to the Indiana University Lilly Family School of Philanthropy’s “Philanthropy Outlook 2024-2025,” these factors have led to a more complex giving environment. Things simply aren’t as straightforward as they used to be in years past. Need is greater, wages tend to not grow as quickly, and competition for your attention by worthy causes is at an all-time high.

Despite these challenges, Americans continue to demonstrate remarkable generosity. In 2023, charitable contributions reached an estimated $557.16 billion, reflecting a steadfast commitment to supporting various causes. The report suggests that total giving is expected to increase this year, but not as quickly as 2024, and that the largest sources of charitable giving remain individuals and households: people like you. 

The Role of Community Foundations

Community foundations like ours play a pivotal role in navigating these evolving trends. By pooling resources from donors of all sizes, we address immediate concerns and plan for long-term community well-being. Our foundation serves as a steward of local generosity, ensuring that every dollar contributes to meaningful projects—from scholarships for our students to preserving our cherished community and its history. “Philanthropy Outlook 2024-2025” tells us giving by foundations (meaning “grantmaking” to local organizations) in 2024 was above the 10-year, 25-year, and 40-year annualized average return, but 2025 will be below those historical averages. The need is always great, but as stewards of our donors’ generosity, we make conservative decisions based on asset growth so that our donors’ funds will continue to support the community for decades to come. Foundations across the state of Indiana and our country are doing the same.

Engaging Younger Generations

Engaging younger generations is vital for the sustainability of our philanthropic efforts. Research indicates that younger donors are more likely to support specific issues and utilize digital platforms for their contributions. Donors want to feel connected to the causes they support, and younger donors want to know what their money is being used for. Nonprofits should interpret this as donors wanting to know what’s going on behind the scenes. Striving to connect with supporters should be a high priority. By embracing technology and aligning with the passions of younger donors, we can create more personalized and effective giving experiences. We’ve done this recently through the launch of our subscription giving platform where donations can be made once or repeated bi-weekly or monthly. Think of it like Netflix for donations! This also makes giving more accessible to younger or newer donors who want to start supporting the community. Visitors to givetofcf.com/donate-now/ can learn more.

Addressing the Rural Philanthropy Gap

A concerning trend is the disparity in philanthropic funding between urban and rural areas. Despite one in five Americans living in rural communities, only about 6% of foundation grants are directed our way, according to Arabella Advisors, a D.C.-based consulting firm for philanthropists and nonprofits.

This gap underscores the importance of local organizations, like our Fayette Community Foundation, in bridging the divide and ensuring our unique needs are met because we’re simply not like our urban neighbors in terms of need versus support available. This highlights the part Foundations play to nurture a spirit of philanthropy among the community while pursuing outside funding sources to help grow these efforts. One great example of this is Lilly Endowment Inc.’s commitment to tripling our impact through a matching grant – if we can raise $375,000 by the end of this year. That’s an additional $750,000 that could potentially come to Fayette County due to the work of the Fayette Community Foundation seeking out grant opportunities.

Our Commitment to Fayette County

Our community’s strength lies in our unity and shared commitment to a brighter future. By staying informed about philanthropic trends, adapting to them, and informing the community about these changes, we ensure that Fayette County continues to thrive for generations to come. The Fayette Community Foundation remains dedicated to fostering a culture of giving that reflects our values and meets our community’s evolving needs. We enjoy the work and the impact it has on Fayette County. If you are ready to join us, visit givetofcf.com to learn more or to find our contact information. We’re happy to connect with you and inspire a spirit of philanthropy and leadership.