Michigan charitable giving likely declined in 2023 compared to 2022, according to the new 12th edition of the Michigan Fundraising Climate Survey from Montgomery Consulting Inc. in Huntington Woods.
“Our 2024 panel gave some of the least encouraging responses of all 12 surveys in this series on the four key questions touching on Michigan nonprofit organization fundraising performance and NPO leaders’ assessment of the current climate for fundraising,” says Michael Montgomery, owner and principal consultant at Montgomery Consulting Inc. owner and principal consultant at Montgomery Consulting Inc. and a lecturer at the University of Michigan-Dearborn.
“In 2023, Michigan charitable giving probably declined from 2022 levels. Based upon what our panel told us and other considerations, we believe it highly probable that Michigan charitable giving declined in 2023 and will remain static or decline again in 2024.”
This year’s survey includes traditional questions on Michigan fundraising results, trends, and climate and a special 2024-only question group on nonprofit organization boards and board members.
According to the report, the state saw the fewest organizations surveyed reporting raising more money of all 12 surveys in this series. This year, 34 percent of respondents reported raising more money year-over-year (2023 vs. 2022) in comparison to 44 percent reporting having raised more money on our 2023 survey (2022 vs. 2021).
“A 44 percent to 34 percent decline in organizations reporting having raised more money is not good. But, even worse, either of those numbers is much lower than the proportion that reported raising more money year-over-year in the early years of the survey, such as 2014 when 59 percent reported having raised more money,” says Montgomery.
The report also stated the fewest number of organizations reporting having met their fundraising goal. This year, 51perent of those surveyed reported making their fundraising goal in comparison to 56 percent on the 2023 survey and 65 percent on the 2022 survey.
This year marked the lowest proportion reporting having made, and highest proportion (46 percent) reporting having missed, goal of all 12 surveys in this series.
“In any given year, about a third of our respondents fail to reach their fundraising goal,” says Montgomery. “But, to see that jump to 42 percent on the 2023 survey and now to 46 percent is extremely concerning.”
The report states fewer of those surveyed reported added donors, but more reported having about the “same number of donors.” This year, 29 percent of respondents reported having gained more donors which was down a little from 32 percent on the 2023 survey and substantially down from the 2021 survey when 53 percent reported having gained donors.
This is not, however, entirely “doom and gloom” because, when the proportion reporting having about the same number of donors is added to the proportion reporting having gained donors, a pattern of relative stability becomes evident, says Montgomery.
Finally, this year, just 17 percent of those surveyed expected fundraising conditions to improve in comparison to 28 percent last year. Excluding a special second 2020 survey done during the March-April lock down on which just 5 percent expected fundraising conditions to improve, this year saw the lowest level of optimism since 2019 when just 12 percent expected fundraising conditions to improve.
According to Montgomery, persistent nervousness about the economy is almost certainly depressing giving. U.S. GDP is growing, employment growth is good, there have been some large high-profile layoffs, but overall unemployment remains low, the stock market remains high, and inflation is coming down.
“Still, a large proportion of Americans remain firmly convinced that our economy is in a precarious condition and there is simply no way that does not depress giving,” says Montgomery.
To read the full report, visit here.
