It’s shaping up to be a big year for charitable giving around the world. Individual consumers have spent several years cautiously rebuilding their finances back to more comfortable pre-recession levels – in many cases at the expense of donations to nonprofit organizations. Recent improvements to the global economy are finally opening the floodgates, and numerous reports forecast rapid growth in donations over the next few years.
The Non Profit Times cited a special report from the Giving USA Foundation that found total contributions in the U.S. increased 22 percent between 2009 and 2013. It’s not just foundations, larger corporations and other organizations leading that growth, either. In fact, the study revealed that 72 percent of all charitable contributions in 2013 came from individuals. The Indiana University Lilly Family School of Philanthropy, which partnered with Giving USA to publish the report, estimated that total donations could recover to pre-recession levels by 2015.
Initial predictions hit the mark
More recent data proves that forecast to be right on track. According to “The Philanthropy Outlook: 2015 & 2016,” also published by the Lilly Family School of Philanthropy, total giving will increase 4.8 percent in 2015, which is faster than the projected 4.2 percent annual increase needed to catch up to pre-recession donation levels.
Other countries are mirroring these trends as well. The 2014 World Giving Index from the Charities Aid Foundation reported that worldwide, the number of people donating money to charities increased from 1.2 billion in 2011 to 1.4 billion in 2014. With so much growth, nonprofit organizations must ensure they’re capable of processing an increasing number of donation transactions. What exactly can these organizations do to leverage the current global trends?