The Landscape is Changing

By Brandon Allen
Executive Director | Fortify Foundation

A lot of things have changed since the pandemic of 2020. While it was an unsettling time for many Christian schools, it has been so amazing to see how God has turned that season around to benefit a lot of those same schools. It’s hard to target an exact percentage but statistics seem to agree that over 80% of schools have seen an increase in enrollment granting them a lot more flexibility in funds than what they’ve had in the past. Also, government funding has created a lot of other opportunities for schools. While there may not ever be a specific way to reveal whether this was a planned event or not, it seems that God has used this for our good (Genesis 50:20).  

We know the fundraising landscape can vary tremendously from school to school based on numerous factors but there are certain trends we must make ourselves aware of. Even in the last few years there have been some drastic changes that will most likely have a major impact on our future ability to raise money.  

Since I’m one of those individuals who loves to end things on a good note, let’s start with the bad news first… 

Bad News #1: For the first time ever in our nation’s history, less than 50% of the U.S. population are giving.  

Let that sink in for just a moment. This is truly a staggering thought. We know the financial landscape is changing quite a bit but why would there be such a drastic cut in philanthropy? There are 3 glaring main reasons that have stood out to help us understand this.  

1. Church Attendance 

Since the pandemic, overall church attendance has declined. Again, while you may be experiencing a different scenario in your own church, this is still the overall trend. Many churches started to offer virtual options which developed new habits for individuals and families to just continue via that method. Of course, some new habits excluded attendance from church altogether. Interestingly, this has translated to a lower giving level.  

2. Tax Law 

This change takes us back to 2017 when our then president instituted the Tax Cut and Jobs Act. Standard deductions experienced a drastic increase from $6,500 to $12,000 for individual filers and from $13,000 to $24,000 for joint returns. People who were once itemizing their deductions were not just taking the standard deduction. While this has proved to be a benefit in some ways, it has also made a major impact on charitable contributions.  

3. Financial Planning 

This topic could get incredibly detailed very quickly. A quick summary is that household debt is continuing to rise with an increase of over $4,000 coming from the previous year. Nearly half of Americans have stopped saving for retirement and an even higher percentage know they aren’t ready for any type of retirement. Inflation has increased roughly 17% since 2020 which has had a major impact on how far the almighty dollar goes. This has contributed a lot less flexibility for people to give than what has been experienced in the past.  

Another staggering statistic, according to the FEP, 5% of all philanthropic giving came from only 6 donors! I know we all would love to have a relationship to those 6 donors, but I imagine that excludes most, if not all, of Christian schools.  

Bad News #2: 90% of all donations will come from 10% of your donor base. 

This news may or may not seem all that drastic to you as we all know that most of our overall donation amount typically comes from a small majority of our donor base. What you may not realize however is that before 2020 this number had a 10% swing. It used to be at least 20% of donors accounting for 80% of all received donations. Again, this reveals a major trend that we might have to account for in the future of fundraising. Another thing to account for is that 80% of all donations will be received during the months of November and December. While giving Tuesday might not always manifest what you hope, there is still wonderful opportunity to engage your constituents during this season.  

A lot of assessment happens in terms of both dollars and donors. 2020-2022 has revealed a donors down, dollars down economy. Fortunately, in 2023 it has revealed a donors down, dollars up situation but even the impact of those dollars isn’t what it used to be due to inflation.  

Now for some good news! 

Good News #1: Giving to Education is Up!  

2023 revealed that people truly have a heart for education!  

Source: Giving USA 

This last year, educational giving has seen a huge uptick, nearly tying for second place out of all organizations to give to. This is a great encouragement and opportunity for Christian schools! We have such an incredible advantage to engage new and former constituents due to the natural investment we make in their kids / grandkids. The key is to continue to develop a culture of philanthropic giving as much as possible and position ourselves to ensure those donations pay for added value and not just to meet budget. This helps get people excited about progress and not just keeping your doors open.  

While you may or may not be experiencing challenges related to some of this data, there are a couple of additional things to note. 2024 is a politically charged election year. This often means that some of those donations we receive could very well be redirected this season. Additionally, let’s not forget Proverbs 21:5. It’s through both hard work and careful planning that will lead to future success. We serve a great God that knows and promises to meet our needs, but this doesn’t’ negate our responsibility to steward our resources well and plan accordingly considering these trends. The giving today may not be available tomorrow!  

As you explore the concept of endowment, we would love to have a conversation with you and your board about how this can create a more sustainable future for your school! Contact us at 803-615-3037 ext. 1 or Click HERE to schedule a call.