This year’s TrendsWatch examines changes reshaping philanthropy. While charitable giving overall remains strong, that total masks a troubling trend: a shrinking number of US households engage in giving while wealthy individuals play an ever growing role. This growing “philanthropy gap” creates risks for nonprofits, both around the stability of support, and the way in which donors shape an organization’s priorities. In today’s guest post, Jessica Proctor, Director of Development & Membership for the Utah Historical Society tells us how she and her colleagues advocates for the benefits of a community-centric approach to fundraising, creating a wider, more resilient base of support.

–Elizabeth Merritt, Vice President, Strategic Foresight and Founding Director, Center for the Future of Museums

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The landscape of philanthropy is shifting. As generational wealth transfers and donor mindsets evolve, the traditional, transactional model of fundraising is becoming harder to sustain. Family foundations are sunsetting, funding priorities are narrowing, and donors are scrutinizing their charitable investments with unprecedented rigor. This presents not a threat, but a vital opportunity for institutions and their development teams to redefine their work through a mission-driven, community-centric lens. Adopting this approach is not just altruistic; it is strategically essential for your organization’s long-term financial health and relevance.

Community-centric fundraising shifts the perspective of development work from donor-centric, in which strategy and messaging are built around and elevates the role of major donors within the success of an organization, towards an authentic mission-driven ideology that celebrates the entire ecosystem of stakeholders supporting the work of an institution. This is a radical notion for very traditional institutions, which have spent decades building complex and sophisticated systems of research, cultivation, and recognition that historically have celebrated the donor as an organization’s hero. However, as the world changes, we are seeing different needs and expectations from donors at every level, and community-centric fundraising presents a strategic opportunity to replace the transactional mindset, enabling organizations to holistically support and deeply engage their stakeholders by prioritizing mission and shared values.

The increasing prevalence of Donor-Advised Funds (DAFs) allows individuals to build both capacity and philanthropic patterns slowly, often through modest, annual contributions. Crucially, some of these contributions are anonymous. This trend demands a critical question: How can we afford to treat any donor as minor, when their true capacity or long-term commitment may be unknown? Every supporter, regardless of current giving level, must be cultivated with equal respect and transparency.

Additionally, studies have shown that younger generations of donors are more mission driven. 

Gen Z and Gen Alpha care more about values alignment than transactional philanthropy. They seek to make a real difference, demanding transparency, demonstrable impact, and meaningful, personal connections with the organizations they support. Beyond monetary contributions, they value volunteer opportunities and authentic engagement. These emerging donors care far more about the organization’s impact than where their name appears on a list or the swag they receive.

At its heart, community-centric fundraising reinforces and strengthens the mission of any institution by recognizing all contributions—of all sizes and forms of engagement—as valuable and critical. This approach empowers development teams and challenges institutional leaders to prioritize authenticity, shared responsibility, and commitment to the core mission in every interaction.

What does this look like in practice?

Some organizations flatten recognition structures, ensuring all stakeholders receive equal acknowledgment regardless of donation amount. Others include volunteer time as an in-kind contribution, valuing volunteers as vital donors. Every institution is different, and community-centric fundraising may look different for each institution that embraces it. And while community-centric fundraising is rooted in development work, when embraced as a larger ideology by an institution, it becomes a powerful rallying point for all staff and volunteers.

At the Utah Historical Society (UHS), we work collectively to embody and practice a community-centric ideology across the organization. As a public-facing institution tasked with researching, keeping, and sharing the history of our state, we recognize that we are not the creators of history. Our teams work with communities across Utah to build and maintain relationships, and to support them in discovering and sharing their own history in their own way. Internally, we cultivate an environment of support and belonging. We celebrate and work in support of each other, prioritize respect and intentional listening in difficult conversations, and recognize the valuable voice of each distinct staff member.  

We strive to maintain a mindset of abundance that allows us to work with generosity and hope, both internally and externally. UHS has changed and grown dramatically in recent years, and we have brought our stakeholders, from members to partners to donors, along with us. That has led to some nuanced conversations about both the constraints and opportunities inherent in rapid growth and transformation, but we are committed to the vision of our organization that calls for major changes in our day to-day-operations. Looking to the future, we maintain a prioritization of serving every Utahn, and will continue to learn what that means as we engage outside our own walls and meet people where they are at. 

As the development officer of UHS and the Museum of Utah, I champion this perspective. Every donor, regardless of size, receives a hand-written note. We create transparent communication and engagement opportunities across all levels so every supporter can see the impact of their part in our collective work. I celebrate and support my colleagues in their work, and show up at their events in an effort to understand the deeper values and motivations of the communities their programs serve. I work in consultation with my colleagues to consider grant opportunities, major funding, and build enabling constraints to guide fundraising efforts. My work is driven by our mission, motivated by our strategic plan, and anchored by the community-focused values we embody as an organization.

Community-centric fundraising is not a fleeting trend; it is the evolution of philanthropic sustainability. It aligns the financial goals of the institution with its moral mandate by prioritizing mission over transaction. In a rapidly changing world where younger donors demand values and transparency, where DAFs hide potential capacity, and where a wide base of support is the best defense against economic uncertainty, community-centric fundraising delivers a clear benefit: a wider, more loyal, and more deeply engaged base of stakeholders. This philosophy demands that we continually learn, engage outside our walls, and meet people where they are, treating every member of our community with the profound respect they deserve. By embracing community-centric fundraising, your development team empowers the mission, strengthens community bonds, and, ultimately, secures a more robust and relevant future for your organization.