Philanthropy is at a turning point. Nonprofits face rising costs, declining donor participation and shrinking federal support. Yet those who do give are contributing more than ever.
“The role of donors is evolving – and so are the ways they think about and practice their giving. Today’s giving, especially by affluent donors, often goes beyond one-off, occasional gifts, as valuable as those are. It’s also about creating lasting impact at a time when nonprofits need both seasonal generosity and meaningful, long-term commitment,” said Amir Pasic, Eugene R. Tempel Dean of the Indiana University Lilly Family School of Philanthropy.
I’ve spent over two decades helping nonprofits and families turn generosity into lasting change. Here are four ways donors can meet this moment and move from transactional giving to transformational impact.
That gap is a missed opportunity. Excluding heirs puts philanthropic efforts at risk of becoming an afterthought rather than a shared family value. Involving children and grandchildren early strengthens relationships, prevents conflict and ensures giving reflects shared priorities.
Philanthropy can be the glue that binds generations. Gathering around the dinner table to make charitable decisions opens conversations about values, purpose and legacy in a way few other family activities can. When younger family members are educated, engaged and empowered to act, they carry forward not just your wealth, but your vision for change. That, in many ways, is every bit as meaningful as the dollars given.
This reflects a broader truth: Skills, experience and relationships can be as transformative as cash. A retired executive mentoring a nonprofit leader, or a tech professional building a website for a local charity, can fundamentally strengthen an organization from within.
The most effective donors integrate time, talent and treasure, creating stronger nonprofits and finding deeper personal fulfillment in the process.
A large number of annual donations occur in December, driven by tax deadlines and holiday giving. While that burst of generosity is vital, it can make it hard for nonprofits to plan budgets, staff programs and respond to needs year-round.
A more sustainable approach gives nonprofits the flexibility to grow with confidence. Breaking the cycle is one of the simplest, yet powerful ways to strengthen the organizations you care about.
In investing, consistency matters more than timing the market. Philanthropy works the same way. When giving becomes a steady, strategic commitment rather than a seasonal gesture, nonprofits gain the stability they need to thrive.
These tools do more than offer tax advantages; they create predictability for nonprofits, enabling them to budget years ahead and invest in long-term solutions. Pairing these vehicles with a clear philanthropic strategy ensures your giving addresses root causes and endures for generations.
Philanthropy is evolving – and so is the role of the donor. The most effective giving today is inclusive, strategic and sustained. By involving the next generation, expanding the definition of giving, committing year-round and thinking long-term, donors can move beyond meeting immediate needs to shaping the future.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
