Amplifying Impact: How donors can support nonprofits beyond dollars

Philanthropy is playing an increasingly important role across nearly every sector of society, from education and scientific research to public health and food insecurity. During the COVID-19 pandemic, for example, Feeding America responded to the growing hunger crisis by providing more than 10.8 billion meals from April 2020 to December 2021 - a 38% increase compared to the same period pre-pandemic. To support philanthropy’s growing influence, donors are stepping up to the plate - and they’re adopting new ways of giving that amplify their impact beyond dollars.  

Historically, donors have had three key ways to support nonprofits and grantees: 

• Dollars: Americans gave over $557 billion to philanthropic causes in 2023. Of this amount, the largest source of giving came from individuals, who gave $374 billion (about 67%).[1] 

• Time: Volunteerism in the U.S. bounced back after the pandemic, with over 75.7 million (28.3%) of the U.S. population age 16 and up formally volunteering through an organization between September 2022 and September 2023.[2]

• Expertise: Donors with business, legal, financial, operational, or other expertise can serve as formal or informal advisers and provide access to their networks. 

Savvy donors, including younger generations who are expected to inherit $84 trillion by 2045, are shaping the future of giving by prioritizing transparency and evolving beyond traditional cash donations and volunteering. Donors are adopting new giving vehicles such as Donor Advised Funds (DAFs), and they are increasingly interested in measurable results and success stories. 

Now, there are more ways than ever for donors, philanthropists, and foundations to amplify their impact beyond dollars and time by sharing their expertise. Capacity building is one way that donors can support the infrastructure of the nonprofits they care about, empowering nonprofits to be more effective and sustainable as they deliver on their missions. 

Capacity building support might include: 

• Leadership development: Executive coaching to help nonprofit leaders manage teams, prioritize their time, and become stronger advocates for their cause. 

• Infrastructure support: Investing in better IT infrastructure, data management, or organizational tools to streamline processes and free up time for nonprofit leaders to focus on their work. 

• Financial management: Improving financial health by strengthening financial literacy or improving financial tracking and reporting systems. 

• Impact measurement: Outside tools, expertise, and training to provide unbiased, third-party feedback and help nonprofit leaders see beyond the trees. 

• Strategic planning: Strategic work to develop or update a nonprofit’s roadmap, including its goals, strategies, and actions. An effective strategic plan guides an organization’s decisions and resource allocation, and it helps facilitate transparency with donors who are interested in a nonprofit’s “business plan.” 

At PlanPerfect, we know that nonprofits with a strategic plan achieve more, but developing and maintaining a strategic plan can be overwhelming. Nonprofit leaders are experts in their areas of focus, but they are stretched thin; three-quarters of nonprofit leaders indicate that burnout among their staff is at least slightly impacting their organization’s ability to achieve its mission.[3] Many don’t have the time, tools, or support to create a strategic plan that truly guides their day-to-day work. 

That’s where donors can help. By funding access to strategic planning tools and consultants, donors can empower nonprofits to clarify their goals, align their teams, and stay focused on what matters most.

So what can savvy donors do to amplify their impact and support nonprofit leaders? 

• Understand where your values and experience and the nonprofit’s mission align. The more you understand a nonprofit’s needs, the more likely you are to identify how your unique skills, network, and point of view can support the mission. 

• Consider offering capacity building support. While the impact of capacity building support might not be immediately clear, it’s a long-term investment in helping nonprofits make faster, more effective progress towards their goals. 

• Ask to review a strategic plan. Newer or smaller nonprofits might not have had the time or resources to develop a strategic plan, and others may have one that they rarely reference. Nonprofits with a “living” strategic plan - one that can address its evolving needs - are more likely to succeed. 

When donors move beyond writing checks to offer their expertise, insight, and support, they help nonprofits not just survive, but thrive. By investing in capacity building, donors become true partners in driving meaningful, lasting impact.

1. National Philanthropic Trust: Charitable Giving Statistics

2. United States Census: U.S. Volunteerism Rebounding After COVID-19 Pandemic 

3. State of Nonprofits 2024: What Funders Need to Know