Philanthropy in America

Though the reductions in US Federal funding have made news in recent months, it’s important to remember that philanthropy in America comes from many other sources. The latest Giving USA report, which provides an annual analysis of philanthropic giving in America, shows a 3.3% increase in charitable giving for 2024, with donations totalling US$593 billion.

Insights from Heather Hill

Heather Hill, CNM, CFRE, Head of International Fundraising for Chapel & York shares her thoughts: ‘If you’re fundraising in the US, you should take note that giving from individuals and corporations increased and foundation giving held steady. Furthermore, all causes saw an increase in support, with the exception being religious causes which decreased by 1% but still remains the leading recipient.’

Opportunities for international fundraisers

What does this mean for your international fundraising from America? There are still abundant opportunities to secure support for your mission. Be sure your organisation’s case for support is current and compelling, research your prospects to better understand their charitable priorities and motivations, and thoughtfully steward relationships.

We know that with all the information floating around in the media about the situation in the US, there are concerns about what may/might/could happen going forwards. Whilst we will not engage in any speculation we can clarify what, as of today, is the position, and what, if you or your stakeholders have concerns, you may want to look at doing regarding your US engagement. The overall message from us though is DO NOT PANIC.

The Current Situation

There has been no suggestion that 501(c)(3) status for the nearly 1.5 million 501(c)(3) organisations will be terminated. There has also been no suggestion that tax deductibility of donations to those organisations will be terminated. These would require administrative procedures. Up to now the focus has been on Federal (US Government) funding for activities with which the Administration does not agree such as DEI (Diversity Equality Inclusion) and Climate Change, the use of Federal funds and US international aid.

There are legal limitations as to what a US President can do and unilaterally terminating 501(c)(3) status is not in his legal remit. Executive Orders have been legally challenged and are with the courts to make further determinations.

Actions

If you and/or your stakeholders are concerned about the way things are moving in the USA, we can make the following suggestions for some small actions you can take:

1. Ensure you make any grants now rather than waiting so that could mean either through a Unanimous Written Consent or a Board Meeting
2. Speak to donors about accelerating any donations, particularly large ones.
3. Review the programmes for which you are seeking funds and perhaps moving from any DEI, Climate Change or similar activities which might be targeted.

We are constantly reviewing the situation and our extremely connected and involved Head of International Philanthropy, Heather Hill, is serving as the Coordinator for monitoring this. She is always available to you, as indeed am I to answer questions.

We wish you all the best.
Kind regards,
Nancy Bikson

Comparison Table

Our comparison highlights the advantages of each option, covering regulations, governance, finances, and donor trust.

Fundraising Options

When it comes to fundraising on an international level, organisations have two main options: establishing their own legal entity in another country or partnering with an established charity. Both of these approaches have their advantages and it is important to carefully consider which option would be the most beneficial for you.

Get in Touch

Regardless of your choice, rest assured that we at Chapel & York are here to support you. Get in touch for an informal chat about which model works best for you.