84% of US Philanthropy is Controlled by Individuals—But the Biggest Risk is Being Overlooked

Here’s a striking fact: 67% of the $550 billion in US philanthropy comes from individual giving. Add foundations (20%, half assumed to be controlled by individuals) and bequests (7%), and the share jumps to 84%.

The Hidden Problem

Smaller donors ($1–$100) are disappearing fastest—dropping by ‑8.9%. These supporters are tomorrow’s major donors; losing them now is a ticking time‑bomb for fundraising sustainability.

Why Does This Matter?

• Future pipeline ↓ – today’s small givers become tomorrow’s high‑value contributors.
• Revenue volatility ↑ – over‑reliance on a shrinking major‑donor pool is risky.

What Can Be Done?

A cue may lie in Europe’s mass‑market fundraising playbook:

• Build long‑term relationships with small‑gift supporters.
• Use personalised communication to engage at scale.
• Leverage AI‑driven insights to predict and prevent donor churn.

The Bigger Picture

I’ve been reflecting on a broader narrative:

1. Lower returns – traditional targeting is maxed out in a crowded space.
2. Lower trust – donors feel disconnected from generic campaigns.
3. Rising demand for personalisation – nonprofits that deliver it can outperform.
4. High creative costs – but AI now makes large‑scale, personalised content affordable.

The AI‑Powered Flywheel

Tackle those challenges with AI and you unlock a virtuous cycle:

1. Content liquidity → personalised experiences at scale → trust & engagement ↑
2. Acquisition costs ↓ as you reach fresh audiences with tailored messaging.
3. Returns ↑, funding further growth and deeper donor relationships.

Diversify Before It’s Too Late

With USAID and other institutional funders broadening priorities, diversifying revenue streams is critical. Individual donors remain the most reliable—and flexible—source when backed by personalisation and sustained engagement.

How We’re Doing It at augedo

We’ve already seen European nonprofits thrive with AI agents:

• Online Oscar – generates personalised content at scale.
• Strategy Sam – delivers complex data analysis so fundraisers can focus on strategy.

Together they handle the heavy lifting of personalising outreach while humans steer the vision.

Let’s Nurture Tomorrow’s Donors—Today

💡 Your turn: What’s your experience with small‑gift donors? How are you keeping them engaged? Share your insights and let’s tackle this challenge together!