Why 1 in 4 donors plan to give less and how direct mail might help

Faced with an uncertain economic and fundraising outlook for a second year, what can nonprofits do to engage more individual donors? Who’s giving less and why, who’s giving more, and how are younger donors getting involved? Giving USA Foundation and Dunham+Company’s Donor Confidence and Giving Behavior: A 2026 Report offers a few hints.

As of November 2025, 54% of surveyed donors (who gave at least $20 the previous year) described their personal finances as “somewhat to extremely distressing,” down slightly from 58% in January 2024. At the same time, 40% of donors expected the economy to decline in 2026. How do these perceptions shape donors’ giving plans?

1. Fear and doubt about the economy is driving giving decisions

Donors were more likely to cite the “economy in general” as a reason for reducing giving (27% in November 2025 vs. 14% in January 2025), and less likely to cite their personal finances (55% vs. 67%) or inflation (9% vs. 18%). This data suggests giving decisions are being driven less by actual financial constraints as by “fear, doubt, and a defensive posture toward an uncertain economic future.”

2. Religious donors give more, and the gap is growing

According to the report, donors who attend religious services weekly give 2.5 times more than those who never attend services—and not just in terms of church giving but across almost every charitable cause area. The gap is wider among younger generations: whereas boomers who attend services weekly give twice as much, Millennials give four times as much, and Gen Z three times as much.

For 2026, just 7% of these “religiously engaged donors” planned to give less, even though 30% of these donors reported finding it “extremely” or “very challenging” to meet their financial demands. This is in stark contrast to the general population, of whom 25% reported “extremely” or “very challenging” personal finances and 24% planned to give less this year.

The report found donors who attend religious services weekly are also more likely to express greater trust in charitable organizations—possibly because they volunteer more—and to itemize deductions. They’re also more likely to engage with and give to nonprofits on mobile devices and to respond to text message appeals as well as direct mail. That may mean religiously engaged donors, especially younger ones, will respond well to strategies based on the next finding.

3. Direct mail is surprisingly effective…among Gen Z

One of the most unexpected findings was that, in this digital age, 82% of donors said they respond to direct mail, including 93% of Gen Z donors. What’s going on?

It turns out that nearly 50% of donors of all generations who respond to direct mail do so by visiting the nonprofit’s website and giving online; only around 20% will mail a check. According to the report, this pattern appears strongest among Gen Z and Gen X donors. Moreover, 80% of Gen Z donors want to receive direct mail on a monthly basis, compared with 64% of millennials.

“A well-crafted piece of direct mail stands out in ways digital communications increasingly cannot,” the report’s authors note. “For Gen Z donors who’ve grown up in a purely digital world, physical mail carries a novelty and tangibility that commands attention.”

Given that 40% of Gen Z donors in the survey attend religious services weekly, they may represent a bright spot for future fundraising. Nonprofits may benefit from cultivating these young donors by maintaining direct mail while making it easy to give on their websites and via mobile devices.

4. Telling donors about the universal charitable deduction may boost giving

Three-quarters (75%) of donors don’t know about the new universal charitable deduction (UCD), which allows non-itemizers who take the standard deduction to also deduct up to $1,000 in charitable giving ($2,000 for joint filers). According to the survey, after learning of the UCD, 13% of standard deduction donors said they would increase their giving; 33% of non-donors said they now planned to begin giving.

Given that other tax provisions are likely to suppress overall household and corporate giving, raising awareness of the UCD is essential for maintaining fundraising revenue. Suggestions for nonprofits include highlighting simplified UCD information in targeted donor communications and creating simple, clear explanations of the benefit.

This article is part of a regular feature where Candid insights shares key takeaways from a new research report to encourage a more data-driven approach to the sector’s work. Please email insights@candid.org to recommend a report for an upcoming feature. 

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