A global perspective on navigating the American philanthropic landscape
The American philanthropic landscape is vast and complex, with total giving in 2023 reaching USD$557.2 billion, primarily from individuals, foundations, corporations, and bequests. However, international organisations often find it challenging to tap into this highly US-centric ecosystem. For global nonprofits seeking to expand their funding base, there are several essential factors to consider.
Understand the trends
In 2023, giving in the US saw steady growth, particularly in sectors such as human services, education, health, and the environment. However, despite these gains, international organisations may face hurdles when trying to appeal to American donors. This is because many US-based funders still prefer to support causes with a domestic focus. Understanding which internationally-focused sectors are trending, such as disaster relief or human rights, can help align your cause with donor priorities.
Religion continues to be a number #1 priority for American philanthropists.
Giving to "international causes" (international affairs) tend to be dominated by disaster relief and primary healthcare.
Build relationships with (Ultra) High Net Worth individuals
High net worth individuals (HNWIs) continue to dominate philanthropic giving in the US. In fact, US billionaires donated over USD$250 billion in 2023. For global nonprofits, building relationships with HNWIs who have a demonstrated interest in global causes is crucial. These donors are often motivated by personal connections, values, or a desire for impact-based giving.
Tailor your pitch to American donor preferences
US donors have specific preferences when it comes to charitable giving. For example, individual giving remains the largest source of philanthropy, driven by factors like stock market performance and GDP growth. Many donors, especially younger generations, are increasingly motivated by social justice issues, climate action, and impact investing. To capture their attention, international organisations need to tailor their messaging to align with these priorities.
Leverage digital tools
The rise of digital fundraising platforms and AI-driven engagement strategies has revolutionised how donors connect with causes. US funders are increasingly using technology to identify, cultivate, and retain donors. Global nonprofits should invest in these tools to streamline donor communication, personalise outreach, and build long-term relationships.
“AI is increasingly being recognized as a transformative tool for nonprofits, offering a range of applications that streamline operations, enhance donor engagement, and optimize fundraising strategies. One of the most significant areas where AI is making an impact is in predictive analytics. By leveraging AI-driven models, nonprofits can identify potential major donors who may have been overlooked using traditional methods. These models analyze patterns in donor behavior, wealth indicators, and engagement history, enabling organizations to prioritize prospects more effectively.”
Focus on Donor-Advised Funds (DAFs)
Donor-advised funds (DAFs) have surged in popularity, especially among wealthy US donors looking for flexible and tax-efficient ways to give. By engaging with donors who have set up DAFs, international organisations can access substantial funds that are earmarked for charitable purposes. Highlighting the global impact of your work can help you tap into these resources.
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Tapping into the US philanthropic landscape requires a strategic approach tailored to the preferences of American donors. By understanding trends, leveraging digital tools, and cultivating relationships with HNWIs and DAF holders, global nonprofits can unlock significant funding opportunities and make a lasting impact.
Want to tap into US funding?
If your organisation is ready to expand its reach into the US, now is the time to develop a specific approach just for the USA. Align your cause with American donor priorities, speak their language, invest in digital fundraising, and build lasting relationships with high net worth individuals to thrive in this competitive landscape. There’s a timing to it all as well - no one will be returning calls if they’re hanging out in the Hamptons!
