Why Your Own Data Means More than Giving USA

The 2026 Giving USA report was just released, and no big surprises. My top take-away whenever these reports are released is also just how generous this country is. $617B was donated across the sector, a 3% increase in inflation adjusted dollars. Donor Advised Funds (DAFs) continue to be fast-growing form of giving, a problematic trend that poses the question of how many dollars are really reaching nonprofits. Other recent reports show a decline in the number of donors, less trust in nonprofits, and declining first-year donor retention rates.

How important are reports like Giving USA, and what should you make of them? As consultants, we do our best to keep up with the latest trends, both within the nonprofit sector and the broader economy. Understanding them matters. It informs how we help our clients with strategy and how we advise them on building resiliency and sustainability. For instance, the continued decline of donor trust and first year-to-year retention rates suggest to us the need for nonprofits to do far more stewardship than they’re currently doing. As direct marketing becomes less effective, it suggests to us the need for more robust donor engagement.

But as a fundraiser or nonprofit leader, how should you treat industry trends? Like us, it’s important for you to understand both industry and economic trends. They will help you make the strategic and tactical decisions that will strengthen your organization.

But trends are just that. Trends. What’s far more important is what’s happening within your organization. Too often we throw up our hands and accept that we’re having a bad fundraising year because the national donor pool is shrinking or the economy is bad.

What’s your year-to-year retention rate? For first time donors? For third-year donors? Is this something you even measure? When was the last time you conducted a donor satisfaction survey? What’s your cost per dollar raised? Does it show you’re operating efficiently? What’s the return on investment for each your fundraising channels?

Knowing your own organizational trends is far more useful than understanding national or international trends. And yet we are constantly surprised by how few organizations know or track these basic metrics.

National trends provide context. Organizational trends drive strategy.

Even in the worst economies and the most difficult philanthropic climates, there are still many organizations that thrive. They’re the organizations that understand their own situation and can adapt.

So, what does this mean for you?

• Measure – You can’t understand your situation without measuring it. The most basic metrics are your retention rates by year and by fundraising program, but there are many other metrics you can use. Cost per dollar raised or return on investment overall and by channel are also useful. And poll your donors! Are they happy? Happy donors stick around; unhappy donors don’t.

• Analyze – Now that you’ve measured, what are the implications? What needs improvement? What’s working well that you can lean into?

• Take Action – This is the trickiest one, because many of us have data but don’t look at it regularly and don’t use it to inform decision making. Make looking at your data and strategizing based on it a regular part of your team and organizational meetings.

Imagine two organizations. Both see giving decline 5%. One assumes it's because of the economy. The other discovers that first-year retention has fallen from 25% to 15%, while longtime donors continue renewing at historical levels. Even if both organizations act, the second organization to more likely to have an effective solution.

At the end of the day, an enormous amount of money was donated in 2025. The question is never what is the state of the economy or the state of philanthropy, but given the state of the economy and philanthropy, what am I going to do to give myself the best chance of thriving?

We can't control inflation. We can't control stock markets. We can't control national giving trends. But we can understand our own donors better. We can measure what matters. We can make smarter decisions because of it. That's how effective and resilient fundraising programs are built.