Founded in 1984, the Community Foundation of Broward partners with families, individuals and organizations to create personalized charitable funds that deliver game-changing philanthropic impact. 571 charitable funds represent $300 million in assets, distributing more than $195 million in grants over the past 40 years. The Community Foundation transforms our community through focused leadership that fosters collaboration, builds endowment, advances equity and connects people who care to causes that matter. The Foundation empowers visionaries, innovators and doers to create the change they want to see in the community we love. www.cfbroward.org
Community Foundation of Broward Project Team
Jennifer O’Flannery Anderson, Ph.D., President & CEO
Indiana University Lilly Family School of Philanthropy
The Indiana University Lilly Family School of Philanthropy is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs, and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy, and the Women’s Philanthropy Institute. Learn more at https://philanthropy.indianapolis.iu.edu
Indiana University Lilly Family School of Philanthropy Project Team
Primary Authors: Sarah King Bhetaria, MA, Research Associate; Anna Pruitt, Ph.D., former Associate Director of Research
Primary Analyst: Jon Bergdoll, MS, Associate Director of Data Partnerships
Una Osili, Ph.D., Associate Dean for Research and International Programs
Xiaonan Kou Ph.D., Managing Director of Research
Shivant Shrestha, Visiting Research Associate
Diantha Daniels, Executive Assistant
Adriene Davis Kalugyer, Manager of Public Affairs
J. Heidi Newman, Copyeditor
Design by: Galambos + Associates - galambos.com
With special thanks to the following partner organizations for helping us with the focus groups:
• Broward Workshop
• Executive Service Corps, Florida
• Florida Atlantic University Foundation
• Fort Lauderdale Chamber of Commerce
• Greater Fort Lauderdale Alliance
• Jewish Federation of Broward County
• New Mount Olive Baptist Church
• Our Fund Foundation
• United Way of Broward County
Suggested Citation
Indiana University Lilly Family School of Philanthropy. (2025). Unlocking Opportunities: Shaping the Future of Charitable Giving in Broward County.
Commissioned by the Community Foundation of Broward. https://hdl.handle.net/1805/46284
Introduction
Charitable giving significantly enhances the quality of life for Broward County, Florida residents, with annual donations exceeding $1 billion each year. Despite this substantial charitable landscape, a 2021 study conducted by the Community Foundation of Broward, titled “Untapped Potential: Growing Philanthropy in Broward,”1 reveals that Broward County stands at a crossroads of generosity and unexplored philanthropic potential. When compared to similar-sized communities in Florida and nationally, charitable giving in the area falls short. The study indicates that if charitable giving aligned with comparable communities, Broward’s upper-income donors could generate an additional $308 million annually for charity. If all local donors gave at the same level as their Florida peers, Broward County’s total donations could almost double in size. An additional key concern is the distribution of Broward-based private foundation philanthropic dollars outside of the community. From 2016 to 2018, 70 percent of local private foundation grants—totaling $162 million—went to organizations outside the county, diverting potential support away from addressing local needs. This untapped potential raises critical questions for further investigation: Why does Broward County lag behind peer communities? Furthermore, why do some high-net-worth zip codes give less than others? These questions form the foundation of this follow-up study, aiming to uncover how generosity in Broward County can be activated to reach its full potential. Our project brings together existing data and findings from focus groups to create a more cohesive narrative that explores diverse, high-net-worth donor and non-donor households and offers a clear path for better understanding how to strengthen the existing culture of giving.
Research questions include:
• How do national giving trends compare to trends seen in Broward County?
• How do Broward County’s demographic factors impact giving trends?
• How have trends changed in the past five years for Broward County and the nation?
Key Findings
1
Giving in Broward County may be lower than in similar-sized communities, but household characteristics and the cost of living in Broward County likely explain the difference.
2
There are opportunities to expand philanthropy in Broward County—but it will require long-term commitment.
3
Identity plays an important role in how diverse households give back…and where they give. Fundraising approaches and nonprofit communications must adapt accordingly.
4
Some donors find fulfillment through broader forms of generosity, including volunteering and lending expertise, which are also vital forms of philanthropy.
5
6
Individual trust levels in nonprofits are generally high, with some exceptions.
Strategic giving is becoming more common among donors.
Background
Florida and the National Context
Charitable giving patterns in Florida largely mirror those observed across the United States, with the two most prevalent charitable categories being religious organizations and basic needs charities (e.g., American Red Cross, Salvation Army, or homeless shelters). By analyzing the IRS taxpayer database, we can compare itemized charitable giving in Florida to itemized giving across the United States. Historically, Florida has ranked near the middle among states in terms of charitable contributions. Since 2017, the state has consistently placed in the top 15 nationally for itemized charitable donations. Nearly 7 out of 10 households in Florida made charitable donations in 2021.2
While data show that tax itemizers in Florida are consistently giving at above-average national rates, the Floridians represented in the Philanthropy Panel Study (PPS) data contribute at lower levels than the
U.S. average. The PPS—the nation’s longest-running philanthropy panel study—has tracked the same households since 1968, representing over 9,000 households at various levels of wealth. In 2019, the PPS data showed that the average donation among all Florida residents was $1,059, while the average for non-Florida residents was $1,272. This finding suggests a potentially significant gap between giving amounts by wealthy households and average-income households in Florida —likely because itemizing deductions is typically more beneficial for those with higher incomes. As a result, high-net-worth households* account for a disproportionate share of overall giving in the state. However, within the context of Broward County, middle-income households contribute a larger share of their earnings compared to higher-income residents.3 Additionally, there are some notable differences in allocations to charitable giving categories. Environmental and animal welfare organizations receive
* High-net-worth households are defined as households with an annual income of at least $200,000 and/or net assets of $1 million, excluding their primary residence.
more support in Florida compared to the national average. Florida donors also tend to provide higher levels of support than the national average for multipurpose organizations, such as community foundations and United Way.4
Broward County and the Florida Context
At the Florida and Broward County levels, religious organizations and basic needs receive the highest percentage of all charitable donations. However, in contrast to overall Florida giving, education in Broward County receives a notably smaller share, accounting for only 3 percent of charitable contributions compared to the state average of 7 percent. Education charities include colleges, grade schools, PTAs, libraries, or scholarship funds. Similarly, environmental causes (e.g., conservation funds, animal protection, or parks) also attract less support, garnering 6 percent of overall giving compared to the state average of 8 percent. Broward County is a cost-burdened area where the high cost of living may reduce a residents’ disposable income
and ability to give charitably. According to the Economic Policy Institute, the median living wage in Broward County is $34.28, compared to $32.17 for Florida more broadly. Living wage is defined as the income a family needs to achieve a modest but adequate standard of living.5
A Diverse Community
Broward County is uniquely diverse. According to the 2020 Census, Broward County is the most racially and ethnically diverse county in Florida.6 In addition, Broward County is home to Wilton Manors, a community with the second-highest per capita LGBTQ+ population in the United States.7 As research from the Indiana University Lilly Family School of Philanthropy has shown, diverse donor groups have unique concerns, motivations, and approaches to charitable giving. With Broward County’s diverse population projected to grow rapidly over the next 20 years, it is more important than ever for local nonprofits to understand the needs and motivations of diverse donors.8
Study Methods
This study employed a combination of three distinct methods.
1 Identify demographic factors associated with giving and national trends in giving behaviors
The study identified demographic factors associated with charitable giving along with national trends in giving behaviors. These factors were then compared to the demographic characteristics for Broward County. This comparison allows identification of demographic factors that contributed to differences in giving patterns between Broward County and national averages.
2 Analyze existing data on giving in Florida (and Broward County where available)
To compare the state of charitable giving in Broward County to the national landscape, several data sources were used in the analysis, including:
• Philanthropy Panel Study: The Indiana University Lilly Family School’s Philanthropy Panel Study (PPS) is the philanthropy module in the University of Michigan’s Panel Study of Income Dynamics (PSID), the longestrunning national panel study that has followed the same households since 1968. The PPS data represent over 9,000 households at various levels of wealth. The PPS is the nation’s first and only ongoing longitudinal study
of philanthropic behaviors and attitudes. Following the same individuals and families throughout their lives, PPS tracks giving, volunteering, and factors that influence philanthropic practices across generations.
• Giving in Florida Study: The Giving in Florida study was released in 2022 by the Indiana University Lilly Family School of Philanthropy, Florida Nonprofit Alliance, and the Jessie Ball duPont Fund. The research provided an analysis of giving and volunteering patterns in Florida.
• The Chronicle of Philanthropy’s analysis of IRS county-level data for itemizers / CF of Broward reports: The Community Foundation of Broward has amassed vital information on the philanthropic landscape of Broward County, which includes data on charitable giving by itemizer households. However, these data points are not yet connected to the larger nationwide data about trends in charitable giving at the household level, including data from both itemizer and non-itemizer households. In connecting the data, it becomes possible to assess whether Broward County is performing above or below broader benchmarks or standards, offering a clearer picture of its relative position.
• IRS data for itemizers in Florida
3
Focus groups and individual interviews with residents of Broward County with a special focus on diverse donors
The study conducted focus groups comprised of key informants and stakeholders. These focus groups included 30 community members of different backgrounds and demographics, including:
a. 11 members from the LGBTQ+ community;
b. 9 members from communities of color;
c. Individuals from age groups including 30-39, 40-49, 50-59, 60-69, and 70+; and
d. Representatives from 9 different cities or municipalities within Broward County.
The interviews provided detailed information on the perceptions, attitudes, and knowledge of donors. The goal was to draw on the rich insights of these stakeholders to understand their perspectives, practices, challenges, and successes in improving the relationship between community members and local nonprofits.
1
Giving in Broward County may be lower than in similar-sized communities, but household characteristics and the cost of living in Broward County likely explain the difference.
The choice to donate is influenced by many socioeconomic and demographic factors, including age, wealth/income, marital status and education level.9 Participation in charitable giving increases with rising wealth and income. However, Broward County residents have a lower median income of $70,978, compared to the national median of $74,755. In 2021, 13 percent of Broward County households lived in poverty. An additional 33 percent of households were classified as ALICE—an acronym for Asset Limited, Income Constrained, Employed—compared to 29 percent of households nationally.10,11 This critical segment of households earn above the Federal Poverty Level but struggle to meet the basic cost of living.
“Housing, it’s critical even for staffing issues. We’re losing staffing specifically in the nonprofit sector… Nonprofits are struggling to retain staffing because the salaries just aren’t able to sustain the incredible increase in cost of living.”
– Focus Group Participant
Most participants said that affordable housing was the biggest issue facing Broward County. Over the past two years, rent prices in Broward County have risen by more than 30 percent. Overall, the county exhibits a high level of housing affordability stress, with 61.9 percent of renter households classified as cost burdened.12 The majority of Broward County residents are priced out of home ownership, with the county’s home price-to-income ratio at 9.8:1—indicating the cost of a median-priced home is nearly 10 times the median
household income.13 Even high-net-worth participants expressed concern that their children may not be able to afford to live in Broward County in the future.
“You know you want more money so you can give more. Unfortunately, [we’ve] got inflation and everything’s so expensive. You know, you either eat or donate.”
– Focus Group Participant
Studies indicate that the most common reason individuals report not giving to charity is a lack of resources, even among affluent donors.14 Focus group participants who had not given in the past year cited healthcare costs, caregiving, and other unexpected life circumstances as the top reasons they were not able to give to charity. During interviews, many expressed hope that they would be able to give to charity again in the future.
Another demographic factor that influences giving is age. Although Broward County’s population is older than the U.S. population, it is younger than Florida’s population overall.15 Older generations have higher participation rates in charitable giving and give larger percentages of their income.16 These households typically possess more wealth and may have fewer financial obligations, such as mortgages and college tuition, leaving a greater amount of discretionary funds. Additionally, these individuals often have greater availability to engage with nonprofits compared to their younger counterparts, who generally are occupied with family and career demands. Compared to previous generations, several focus group participants expressed that today’s increased workload and family
responsibilities might limit the time their children can devote to philanthropy.
In the coming years, as younger generations transition to the forefront of economic and societal influence, the philanthropic landscape will undergo changes. A key factor driving this change is the Great Wealth transfer, with projections indicating that through 2045, $72.6 trillion in assets will be passed to heirs and $11.9 trillion to charities.17 Although a significant portion of Gen Z and Millennials (46-47%) report that they now struggle to cover their monthly expenses and live from paycheck to paycheck, this wealth transfer will position them for greater philanthropic impact in the future.18 In response, nonprofit organizations need to reimagine their engagement strategies, prioritizing accessibility and fostering meaningful interactions and communications with younger generations now.
of their charitable giving to organizations based within the state, in contrast to part-time residents who spend fewer than 12 months annually in Florida.19
Snowbirds Shape Local Giving
Being married increases both the likelihood of giving and the amount of giving. In Broward County, only 45.4 percent of women aged 20 and older are married, compared to 50.3 percent nationwide and 49.4 percent in Florida. Collectively, these demographic distinctions may contribute to the unique philanthropic landscape observed in Broward County.
Snowbirds (part-time residents) in the community may maintain philanthropic connections to both of their communities of residence. Year-round residents direct a larger percentage of their charitable giving to organizations within the state, in contrast to part-time residents.
While Broward County has a younger population than Florida overall, 18 percent of its residents are 65 or older—slightly higher than the national average of 17 percent. Many in this age range are retirees and may split their time between Florida and their original communities. These part-time residents, often called “snowbirds,” may maintain connections and philanthropic commitments to both communities, potentially impacting their giving behaviors in terms of both the frequency and amount of their giving. A study on charitable donations in Florida revealed that year-round residents tend to direct a larger percentage
Finally, education is a well-established demographic factor influencing charitable giving. Both the giving participation rate and average donation amounts increase with higher educational attainment. In 2021, a national sample of donors revealed that 5.6 percent of donors had less than a high school education, 20.5 percent had a high school education, 22.6 percent had some college, 25.7 percent had a college degree, and 25.6 percent had a graduate education.20 In terms of educational attainment, Broward County residents have higher levels of education than the state and national averages—with 37.1 percent holding a bachelor’s degree or higher, compared to 34.3 percent of Florida residents. However, with higher educational attainment, Florida residents also carry higher than average student loan debt, ranking 9th in average loan balance among all states.21 The financial burden of student loans impacts major life decisions and can affect availability of disposable income, including charitable giving potential.
Source: U.S. Census Bureau Data, 2020, https://data.census.gov/profile/Broward_County,_Florida
Figure 1: Demographic Trends at the Broward County, Florida, & National Levels
2There are opportunities to expand philanthropy in Broward County—but it will require long-term commitment.
Among affluent donors with capacity to give, common reasons for not giving include lack of a connection to an organization and not being asked to give.22 Focus group participants who did not give locally reported that they did not have personal connections at local organizations.
“I think [with] the organizations I give to…a lot of it’s based on my relationship with the leader or the development director (the person who’s asking me for the gift).”
– Focus Group Participant
Personal ties to organizations cultivate trust, promote a feeling of community and belonging, and deepen emotional commitment to the mission of the organization. Many participants frequently highlighted organizational leadership and their connection to the staff as a pivotal factor in their decision-making process.
On a personal level, engaging with nonprofits offers individuals a meaningful way to build stronger connections within Broward County. Donors often share with the Community Foundation of Broward that through nonprofit involvement, they not only deepened their understanding of community issues and opportunities to give, but they are also able to forge friendships with fellow philanthropists in the community.
Source:
“The 2023 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households,” Indiana University Lilly Family School of Philanthropy, 2023, Retrieved September 26, 2024 from https://scholarworks.indianapolis.iu.edu/server/api/core/bitstreams/2fd1581e-c1a0-43de-a174-a3080d019fc2/content
Several focus group participants also emphasized that demonstrable impact in addressing major issues is crucial to influencing their support. While personal connections are valued by younger generations and more diverse donors, they may often need more communication about the broader impact of the organization on important issues. For instance, in a study on affluent philanthropy, respondents were asked what drives their giving (e.g., profile of an organization, issues, or geographic areas). Affluent Black/African American individuals were significantly more likely to give based on issues compared to their non-Black/ African American counterparts. Similarly, younger individuals are more likely to be motivated by issues compared to older individuals (see Figure 2).23
“People give to people that they know and like and care about. And they want to support the initiatives that the person is doing.”
– Focus Group Participant
“I think the fiduciary responsibility and leadership is very important…that’s responsible giving. It’s not going to help anybody if the money doesn’t go to where it’s supposed to go.”
– Focus Group Participant
Figure 2: Affluent Giving Focuses in the United States
Identity plays an important role in how diverse households give back…and where they give. Fundraising approaches and nonprofit communications must adapt
accordingly.
Research shows that diverse populations have unique concerns, motivations, and approaches to charitable giving—and that diverse donors have not always been included in mainstream philanthropy.24 Broward County is the most racially and ethnically diverse county in Florida, with a diversity index rating of 71.8 percent.25 The diversity index rating of the United States is 61.1 percent, while the diversity index rating of Florida state is 64.1 percent.26
“We’re pretty used to a substantial amount of diversity, and it doesn’t shock us to see different people, and it certainly doesn’t shock us to hear different languages spoken. I think that’s a tremendous thing. It’s a community that opens its arms to all kinds of people…so I do think it’s a community that is caring. We’re a very generous county, in my view, and help is available for many people.”
– Focus Group Participant
Broward County has more same-sex couples than any other county in Florida.27 LGBTQ+ households may have differing philanthropic priorities than non-LGBTQ+ households. For instance, research shows that LGBTQ+ donors are significantly more likely to give to racial justice causes.28 Among affluent donors, LGBTQ+ individuals are also more likely to engage in advocacy or activism, revealing a heightened commitment to social change.29 Studies indicate that diverse donors are more likely to give to causes that impact their communities.
This affinity based giving stems from these donors’ heightened awareness and experiences with the unique challenges facing their respective communities.
“Being
from a minority group, I will be more inclined to donate or volunteer to groups that are marginalized.”
– Focus Group Participant
For instance, Black/African American donors are more likely to give to Black/African American organizations and causes.30 Similarly, Jewish donors who have experienced antisemitism or express concern about it are more likely to contribute to Jewish causes.31 In Broward County, this pattern of giving aligns with the broader trend. Most diverse Broward County residents reported giving to affinity causes and organizations that directly serve their communities, both locally and abroad. Many also reported giving through affinity-based nonprofits. (e.g., Jewish Federations) or giving groups.
“I’m more drawn to give where I feel like there’s disparity…. Caribbean culture, we’re dominant here in South Florida, but we don’t really have a lot of spaces to share, and then they’re not funded sufficiently…so that draws me in.”
– Focus Group Participant
Broward County also boasts a higher Jewish population by percentage than any other city/county in Florida except Miami.32 Both American Jewish and non-Jewish households have similar giving rates. However, Jewish households tend to give in higher amounts, a difference
attributed to demographic factors like race, education, marital status and income rather than motivations.33
“Giving back has been instrumental in my own background…I mirrored what I saw with my parents. They gave a lot of their time and talent. [They] didn’t have the money, but they gave their time and talent.”
– Focus Group Participant
Immigrant and other diverse communities often have distinctive traditions of giving, such as mutual aid and private transfers, that can be often overlooked by the philanthropic sector. Mutual aid represents informal efforts where individuals voluntarily provide resources and services to one another in the community. Private transfers involve direct individual giving to non-household individuals, such as sending remittances to family abroad.34 Remittances can play a vital role in the lives of the recipients while also fueling the broader economy of the sender’s country of origin. In a 2023 survey, more than 75 percent of those who sent remittances to family and friends abroad in 2022 expected to send the same or an even higher amount of money in 2023.35
With an immigrant population above the national average, Broward County could see an impact on giving patterns and how individuals choose to contribute to charitable causes. Immigrant communities may be more engaged in informal giving, such as private transfers or volunteerism. Additionally, these individuals may maintain connections with nonprofits in their homeland, affecting both how often and how much they allocate to nonprofits in Broward County. During discussions with several firstgeneration immigrants, respondents perceived a greater need for philanthropic support in their homelands, especially if they’ve moved from a developing nation.
Diverse Broward County focus group participants reported giving back in many ways, including:
• Volunteering formally with organizations, including serving on boards and donating time and expertise
• Delivering clothing, medical supplies, etc. to nongovernmental organizations (NGOs) abroad
• Political activism
• Supporting the community by attending events and performances
• Monetarily supporting friends and relatives, including paying for education costs
• Visiting and providing care for older friends, family, and neighbors
• Creating a positive work environment with competitive wages to lift employees up.
Data Sources: U.S. Census Bureau Data, 2020; Scott Powers, “Florida counties’
report,” Florida Politics, August 12, 2021; American Jewish Population Project
Figure 3: Demographic Composition of Broward County & United States
Some donors find fulfillment through broader forms of generosity, including volunteering and lending expertise, which are also vital forms of philanthropy.
High-net-worth and diverse donors often report that volunteering is more fulfilling than giving money alone. In a study of affluent donors, more than a third of individuals reported volunteering in some capacity in 2022. Black/African American individuals demonstrated a notably higher rate of volunteerism (46%) compared to their non-Black/African American counterparts (36%).36
“I think it’s important not to just give your money, but to give your time and expertise.”
– Focus Group Participant
Many focus group participants wanted to give to organizations where they could contribute in many ways. Overwhelmingly, participants reported being most fulfilled by giving to a nonprofit through multiple
avenues, including volunteering at events, serving on boards, and leveraging their personal and professional connections to expand the nonprofit’s reach.
A significant finding among participants was their eagerness to offer their professional expertise to organizations. They expressed a desire for nonprofits to engage in discussions around their individual interests and abilities. With a goal of identifying opportunities that align with their strengths and passions, this approach would allow them to excel in their role and maximize value for the
“I sit on a few nonprofit boards, which to me is a form of giving back, trying to bring whatever skills I might have to use and to be useful.“
– Focus Group Participant
Individual trust levels in nonprofits are generally high, with some exceptions.
Donors tend to give to causes they are familiar with and have established trust and personal ties, including local religious congregations, homeless shelters, youth programs, and higher education institutions. Of Florida donors who gave in 2021, 74 percent gave most of their donated funds to organizations based in Florida.37
“[The Community Foundation of Broward] is an amazing resource to just learn about your community and get involved with some of the nonprofits…and begin to learn [how to] tackle some of these issues that we as a community face.”
– Focus Group Participant
“My fund through the Community Foundation has allowed me to [know] what the trends and what the needs are.”
– Focus Group Participant
Individuals are significantly more likely to devote time, treasure, and talent to a nonprofit organization when it is perceived or rated as highly trusted.38 A national survey revealed varying levels of trust in different institutions, with nonprofit organizations receiving the highest amount of trust (39.0%), followed by religious institutions (31.3%), while individuals, educational institutions, businesses, Congress and large corporations were trusted less.39 Similarly, in Broward
County, focus group participants generally reported high levels of trust in nonprofits.
Several participants noted that they had entrusted the Community Foundation of Broward and intermediaries such as United Way to help make sure their funds would make the greatest local impact. This finding is consistent with nationwide trends, which indicate that community foundations are perceived as one of the most trustworthy and transparent philanthropic entities, ranking just below religious organizations.40
Despite high trust levels among participants, research demonstrates a steady overall decline in trust in institutions since at least the 1970s. While there is greater trust in the nonprofit sector compared to government or business sectors, overall confidence across all three sectors remains low, with trust levels ranging from 39.0 percent for nonprofit organizations to 5.8 percent for large corporations.41
“There are a lot of resources available for the community and I feel a sense of pride to be a part of Broward County.”
– Focus Group Participant
Focus group participants voiced lower levels of trust in organizations they perceived as wasteful or dishonest. They also discussed a desire for transparency and to better understand the direct impact of their gift. Some diverse participants expressed lower levels of trust in institutions more broadly. Research shows that diverse communities may have lower levels of trust in institutions and may prefer instead to give directly from person to person.42
How much do you trust the following entities to generally do what is right? Completely / Very Much Source: “What Americans Think About Philanthropy and Nonprofits,” Indiana University Lilly Family School of Philanthropy. 2023, Retrieved from https://hdl.handle.net/1805/32247
Strategic giving is becoming more common among donors.
There is a growing interest in donor advised funds (DAFs) and other newer giving vehicles, especially among diverse donors. Multiple participants discussed planned gifts, DAFs, and foundations, with many of them having recently set up these giving plans. Through these strategic giving vehicles, donors optimize their philanthropic contributions for maximum long-term impact. For instance, planned giving—which involves making planned strategic contributions through vehicles such as trusts or wills—offers a sustained philanthropic legacy, while also providing tax benefits for the individual and a reliable source of future funding for an organization.
“I started a donor-advised fund. What I learned when I did that is that there are organizations like community funding organizations that are so helpful in helping you direct your giving to be effective and to fulfill [your] personal goals…That has been a big plus as well and probably encourage[ed] me to the more giving side as well…You become part of a more philanthropic world.”
– Focus Group Participant
Donor-advised funds offer similar benefits to individuals while also allowing them to increase their giving power over time through investment growth. Through DAFs, donors contribute assets to a sponsoring organization, receiving an immediate tax benefit. The sponsoring organization then invests and manages the assets over time, while allowing the donor to recommend grants to their preferred nonprofits. There are several types of DAF providers, including community foundations (e.g., Community Foundation of Broward) and national sponsors (e.g., Vanguard, Fidelity, and Schwab). Participants discussed how community-based DAFs allowed them to be well-informed about and engaged with community issues, thereby increasing the impact of their philanthropic contributions.
A substantial portion of participants reported they had made a change to their giving patterns in the last few years to be more strategic. Changes included:
• Making gifts to a smaller number of organizations that are more aligned with donors’ goals;
• Efforts to ensure the organization succeeded, such as offering to make connections and setting up matching gifts; and
• Changes to the grantmaking application and reporting process to make it easier for nonprofits.
Strategic digital tools and platforms are increasingly helping donors navigate philanthropic decision-making, especially within diverse communities. Research has demonstrated that Black/African Americans are significantly more likely than their non-Black counterparts to use social media for fundraising, online donor-advised fund recommendations, and text-to-give. Social media platforms, like Instagram or Facebook, offer tools for individuals to raise awareness and collect donations that go directly to nonprofits. Furthermore, affluent
Black/African Americans are more likely to have or plan to establish private foundations, donoradvised funds, planned giving instruments that specify charitable beneficiaries, endowment funds, charitable distributions from IRAs, giving circles, and charitable LLCs.43 Planned giving or legacy-building
“I’m retiring at the end of the year. I’ve started making some serious plans as to retirement; planning and charitable giving is definitely a part of that…in a more structured way than it is now.”
– Focus Group Participant
I do not expect this to affect my long-term philanthropic behavior(s)
is particularly important to communities of color, as it creates a long-term pathway to address systemic disparities and build equity for future generations. Many participants reported that the events of the last five years, including the COVID-19 pandemic, did not have as large of an impact as their personal milestones (such as retirement). Consistent with these findings, in a national study the majority of affluent individuals (79.3%) reported their long-term philanthropic practices were unlikely to be altered by their experiences with the pandemic and the racial justice movement that gained prominence in 2020 (see Figure 5).44
Source: “The 2023 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households,” Indiana University Lilly Family School of Philanthropy, 2023, Retrieved September 26, 2024 from https://scholarworks.indianapolis.iu.edu/server/api/core/bitstreams/2fd1581e-c1a0-43de-a174-a3080d019fc2/content
Figure 5: Changes to Affluent Giving in the United States, Based on Events Beginning in 2020
What Can Nonprofits Do?
To connect with diverse donors, look inward first
The path to equity and inclusion starts at home. Nonprofit leaders should reassess their organizations’ internal operations, especially in areas like recruitment, employee retention, and advancement. Ensure that diversity goals are reflected in staff, board composition, vendors, and formal policies that devote staff and marketing resources to support engagement efforts.
“When I started…there were fewer than a dozen organizations we supported, and they all looked the same. Their leadership all looked the same and the audience they served look the same. I think the organizations stagnated as a result. Sometimes we make the mistake [of wanting] to surround ourselves with more people who look the same. We would be better served if we brought people to the table who don’t look like [us] and inspire them to give.”
– Focus Group Participant
Recruiting staff and board members from underrepresented groups can bring new perspectives to the table and provide critical insights to an organization’s strategy and mission.45 Research has shown that organizations with a higher percentage of Black, Indigenous, and People of Color (BIPOC) individuals on their boards reported higher levels of active engagement in oversight and governance. These boards were more inclined to view their role as strategic thinkers. Additionally, those organizations that believed they had successfully promoted diversity and inclusion internally were more likely to have board members actively participating in all aspects of fundraising.46
Where possible, leaders from communities of color should play a role in determining how resources are allocated. This approach provides nonprofits with valuable insights into the needs of communities—not only drawing from the unequal experiences of diverse individuals but also deriving wisdom from their extensive history of philanthropic engagement.47
The fundraising cycle, from cultivation to stewardship, should also recognize all forms of generosity. Mutual aid, giving circles, and informal small gifts have been long-standing philanthropic traditions within communities of color.48 Mutual aid refers to informal, voluntary efforts where individuals share resources and services to support one another. Examples include distributing emergency supplies and crowdfunding to meet the immediate needs of community members, such as medical bills. Giving circles involve collective action and resource pooling, serving as a philanthropic vehicle that unites individuals with shared values to discuss and determine how to allocate the pooled contributions.
Build bridges to meet next gen and diverse
donors where they are and create opportunities for engagement
As older generations transition into retirement, Millennials are emerging as the largest, most educated, and most racially and ethnically diverse workforce. Nonprofit organizations need to adapt as these younger, more diverse generations become the preeminent economic influence in America.
“I think it’s important that they have flexible giving opportunities, because you don’t know where the next area of greatest need will be…there are a lot of diverse needs. We need the flexibility to give in the most meaningful ways to make the greatest impact.”
– Focus Group Participant
To stay relevant, nonprofits should invest in staff development to ensure a strong understanding of current technologies, including innovative giving vehicles. To reduce barriers to giving, the donation process must be as intuitive and accessible as possible. For example, quick payment options like Venmo or Apple Pay are increasingly popular among younger donors and should be integrated into online platforms. Next-generation donors are also more likely than older individuals to donate non-cash assets including real estate and cryptocurrency.49 Nonprofits should be prepared to advise and accept more complex forms of giving.
Building trust with diverse and nextgeneration donors requires authentic engagement, which can be achieved by creating meaningful opportunities that go beyond giving money, such as volunteering or attending events. Research has shown that younger Floridians show a higher tendency to volunteer than their older counterparts.50 Empower BIPOC, LGBTQ+, or younger board members and volunteers to serve as ambassadors to their community.
Understand that a “one-size-fits-all” approach does not apply: listening to each donor’s specific story is key. Consider identity-based giving mechanisms, such as giving circles and participation on grant committees, which can create leadership opportunities for diverse donors, allowing donors to actively participate in decision-making for the organization. Affluent Black/African Americans and Asian Americans are significantly more likely than other groups to attribute their charitable giving to affinity group discussions, such as those within a giving circle.51 Pooling resources with other donors also enables individuals to achieve a greater impact collectively than they could on their own.
It is also important to make diverse donors aware of planned giving opportunities, donor-advised funds, and other strategic giving vehicles. By leveraging these methods, donors can enhance their long-term impact through consistent, strategic giving.
“I’ve been on various committees and focus groups. I’ve worked with the Community Foundation on grant committees…with the hope that it would improve life in some way. It’s something I really have a passion for because we’ve lived here so long.”
– Focus Group Participant
Communicate Broward County’s greatest needs and the impact of your nonprofit
Most participants praised the diversity of Broward County and reported they felt they belonged in the community. However, some participants expressed concern that rapid growth may be changing the county’s character. In particular, participants worried that the newer residents may not be interested in “putting down roots” or supporting the local community philanthropically. Newer residents may also be “snowbirds,” spending only winters in the community. As mentioned previously, year-round Florida residents allocate a higher proportion of their charitable contributions to Florida-based organizations compared to part-time residents who spend less than 12 months a year in the state.52
“We are here half the year. Sometimes I’m a little conflicted. And then I decided I should do 50/50, because I live in these 2 areas, and you know they support me. I need to support them.”
– Focus Group Participant
Nonprofits should enhance their outreach to these potential donors, especially those new to the area or not engaged with philanthropy locally, by implementing targeted communication strategies. These communications should highlight the “give where you live” principle by demonstrating how local donations create an immediate, tangible impact in the donor’s community.
Consider how technology has transformed the ways donors and nonprofits interact. The rise of mobile platforms, peer-to-peer fundraising, text-togive, crowdfunding, and social media has reduced barriers to giving and provided fresh opportunities for nonprofits to engage with constituents, specifically younger generations. For instance, younger affluent individuals are more likely than their older
counterparts to favor digital outreach from nonprofit organizations, particularly through social media. They are also more likely to rely on media and the internet to assess the impact of their giving.53
Next-generation donors value personalized and authentic experiences. They prefer concise, visually compelling storytelling that speaks directly to their values. In response, nonprofits should harness the potential of platforms like social media to deliver immersive and personalized video content and impactful illustrations that clearly convey real-world outcomes to donors.
Organizations should encourage donors to bring the next generation along to presentations, events, and site visits. This will deepen their emotional connection to the cause, helping continue the tradition of philanthropy in the community. Fundraising professionals can utilize the power of storytelling to vividly illustrate an organization’s transformative impact. Participants shared that they were moved to give after hearing the stories of individuals whose lives were improved through the efforts of local nonprofits.
“It feels like organizations aren’t doing enough to promote what they do and when they ask for volunteers, they don’t know what they need the volunteers to do. Or, they don’t take time when someone walks in and says, ‘I’d like to volunteer’ to actually sit with that person and talk about history and background and interests and help them find causes.”
– Focus Group Participant
What Can Those Living in Broward Do?
Find giving and volunteering opportunities that are
fun!
Many participants reported that getting involved in the local community during potentially difficult life transitions, such as retirement or moving to a new area, can be especially rewarding. Take your time to explore different organizations and find one or more that fit with your interests. When you discover a group that is right for you, you will be more likely to feel excited to return and contribute. Several participants who moved to Broward County reported that getting involved with nonprofits was a great way to get to know others in the community.
“I feel like when I’m involved in different community [nonprofits]…I build connections with different people that I never would have been able to before…it turns out to [have] a very positive effect on me, as well.”
– Focus Group Participant
Involve the next generation
Most donors in this study reported that their philanthropic values were shaped by observing or participating in activities of all kinds alongside their parents, including gifts of time and talent. Whether it is attending a service event, volunteering, or
discussing the strategic impact of your charitable giving, be sure to include the next generation in your own philanthropic endeavors.
Several participants expressed a deep interest in understanding the values and passions driving their children’s generation. This highlights the importance of meaningful dialogues with younger individuals about their own interests and philanthropic goals. By listening to younger generations, you can support them as they endeavor to make a positive impact on the world.
Give back in different ways
Philanthropy takes many forms and is not a one-sizefits-all approach. Everyone, regardless of financial means, has the power to make meaningful change in Broward County. Most participants reported giving back in many ways, including volunteering, caring for friends and relatives, creating a positive work environment, and attending events. All of these activities propel the Broward County community toward its untapped philanthropic potential.
“[The Community Foundation] is a great, great resource to get plugged into community and begin to learn.”
– Focus Group Participant
References
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Community Foundation of Broward
The Community Foundation of Broward provides community leadership, fosters bold philanthropy and builds permanent resources to tackle Broward’s biggest challenges — today and forever.
Our mission is to transform Broward through focused leadership that fosters collaboration, builds endowment, advances equity and connects people who care to causes that matter.
Indiana University Lilly Family School of Philanthropy
The Indiana University Lilly Family School of Philanthropy is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a
comprehensive approach to philanthropy through its academic, research, and international programs, and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy, and the Women’s Philanthropy Institute.
