October Surprise! Political Giving Does Not Detract from Charitable Giving.
The concern that charitable giving might decline during a presidential election cycle, when political campaigns dominate the media and fundraising efforts ramp up, can be a concern for nonprofit organizations. But, despite appearances, research and historical trends suggest that political giving doesn’t significantly detract from charitable contributions. Keep in mind that charitable giving exceeded $557 billion in 2023, while the total given to presidential candidates in 2024 is projected to be less than $6 billion. In fact, charitable giving remains robust even during heated election years, and those who support a candidate or ballot issue are more likely to be charitable donors as well. The key is understanding the dynamics at play and adapting accordingly.
Charitable Giving Drivers: Consistent and Resilient
Remember the essentials: Charitable giving has shown resilience through various economic, social, and political environments. The drivers of charitable giving, which have remained consistent over time, are a good predictor of its stability—even during election years.
According to research, there are several “classic drivers” behind charitable donations:
1. Personal Connection to a Cause: People give because they feel personally connected to a mission or cause. This emotional investment drives consistent giving, regardless of external factors like political cycles.
2. Economic Health: While the economy certainly influences donors, charitable giving typically grows; the status of the economy determines whether it grows a little or a lot. Donors tend to continue supporting causes they care about, even during financially challenging times.
3. Tax Incentives: While tax incentives might not motivate donors, they can affect the timing and magnitude of gifts. Despite the focus on elections, these incentives remain in place for high-net-worth households and encourage giving.
4. Wealth Effects: Research has also shown that high-net-worth individuals, in particular, are consistent givers. Their capacity to donate may be insulated from short-term factors; although they are often more generous when they feel wealthier due to market increases (and the S&P 500 is up more than 20% through September).
The drivers of charitable giving are grounded in the donor’s values, financial capacity, and emotional ties to causes—factors that are less likely to be influenced by political giving, even in an election year. So, if you’ve ever wondered whether a contentious election cycle might dry up charitable resources, the answer is clear: charitable giving is resilient.
But What About an Election Year?
Despite the overall stability of charitable giving, many nonprofits still wonder about the specific impact an election year can have on their fundraising efforts. Here are three common questions:
Does an election year impact annual giving?
The short answer is no, not significantly. While political campaigns certainly raise large sums, there is little evidence to suggest that political donations replace or diminish charitable giving. According to research, donors who give to political campaigns are often the same people who give to charities, and they tend to view the two as separate and important areas of giving. Election-year noise may shift the timing of some donations, but overall giving remains strong.
Does an election year impact special projects like a capital campaign?
Capital campaigns are large, long-term fundraising efforts, and their success is built over years, not months. While a donor’s attention might be briefly captured by political events, capital campaigns often focus on personal, mission-driven conversations with donors. Therefore, election-year distractions are unlikely to derail these conversations. In fact, many successful capital campaigns have been completed during election years, driven by the same philanthropic motivations that sustain giving in any other year.
Does an election year impact my stewardship and relationship with donors?
The most important factor in maintaining donor relationships is ongoing stewardship. Regardless of political distractions, nonprofits should remain focused on engaging donors, demonstrating impact, and cultivating long-term relationships. If anything, an election year presents an opportunity to reinforce those connections, as donors may appreciate the steady focus on the causes they care about amid the chaos of political campaigns.
Four Tips to Maintain Fundraising Momentum
To make the most of your fundraising efforts during an election year, it’s essential to stay proactive and engaged. Here are three practical tips to ensure that your organization continues to thrive:
1. Don’t let off the gas.
Stay the course with your cultivation, solicitation, and stewardship plans. It might be tempting to press pause while election noise fills the airwaves, but consistency is key. Your donors are still thinking about your cause, and regular communication will keep them engaged and ready to give.
2. Cut through the noise with a clear signal.
Election seasons come with a lot of “noise”—ads, debates, news coverage, and social media posts. To keep your donors’ attention, your messaging must be crisp, clear, and compelling. Share stories that highlight the impact of your work, focus on your mission, and demonstrate program results. Authentic storytelling can cut through the political chatter and reinforce your donors’ commitment to your cause.
3. Avoid partisanship (unless it is central to your mission).
In these times of contentious political divides, avoid alienating donors. Unless your mission is rooted in a clear political philosophy (left or right), stay away from messages or actions that might be perceived (or even misperceived) to align with a particular candidate or political party.
4. Embrace political givers—don’t fear them.
Many political donors are also charitable givers, and their political generosity does not cannibalize their philanthropic efforts. In fact, an election year might even bring attention to important causes as the public becomes more engaged in civic life. Be prepared for this by building strong relationships with donors and making it easy for them to support your mission.
A presidential election year doesn’t have to spell trouble for charitable giving. By staying focused on your mission, maintaining donor relationships, and cutting through the noise, you can continue to see success in your fundraising efforts, no matter what’s happening in the political arena.
