Nonprofit consulting group Isaacson-Syverson Consulting and market research firm Compendium Insights today released the results of the second annual State of Central Iowa Philanthropic Giving Report. The two firms conducted a survey, collecting responses from 166 philanthropic people, corporate donors and foundation representatives located in Central Iowa.

The goal of this reporting is to equip nonprofits with valuable insights that can enhance their fundraising strategies, according to a news release.

The report reveals that nationally, 72% of charitable giving donations come from individuals; 21% from charitable foundations; and 6% from corporations. Additionally, the percentage of households across the country that give charitably saw a 4% decline from the previous year, the first decline in recent history, according to the report.

Central Iowa donors’ confidence in nonprofits declined slightly this year. Some respondents shared that they worry about burnout among nonprofits that are expected to do too much in the wake of the pandemic.

Despite declining confidence, 92% of donors maintain their focus areas, and many plan to increase giving in 2024. Individual donors intending to increase their giving rose from 27% in 2023 to 40% in 2024, while 31% of corporations plan on donating more, up from the 7% reported in 2023. For foundations, 44.5% plan to increase giving, up from 27% last year.

The study offers two key recommendations for nonprofits. First, it emphasizes the importance of building relationships with donors to foster trust and boost contributions. Secondly, it endorses collaborative efforts between nonprofits, citing donors’ reported skepticism when they perceive redundancies in philanthropic efforts.

Here are some of the report’s other key findings.

Influences on giving:

• Belief in the nonprofit’s mission remains the top influence for individuals, corporations and foundations.
• 94% of individual donors are influenced by mission belief, with 77% motivated by the belief that their gift makes a difference, up 4% from 2023.
• 77% of corporate and foundation representatives cite alignment with a corporation’s strategic objectives as crucial.
• Relationships with nonprofit board members or employees influence 87% of individuals and 85% of corporate respondents.

Gift distribution:

• 87% of individuals and 77% of corporations support Central Iowa nonprofits.
• The majority of corporations and foundations gave to 21 or more nonprofit organizations in 2023, indicating a preference to diversify giving.
• 60% of individual donors give to 10 or fewer nonprofits.

Communications and recognition:

• Email is favored by corporations and foundations, with 72% appreciating in-person meetings.
• Individual donors prefer email and in-person meetings, with reduced interest in mailed materials.
• Recognition preferences include personalized thank-you letters for individuals and visibility in newsletters, social media or emails for corporations.

Volunteerism and philanthropy:

• 85% of respondents volunteer personally, with serving on a nonprofit board being the preferred method, correlating with increased donations.

Read the full report below.