There are three fundamental truths about philanthropic giving and today’s tariff war.
1. People give from disposable income and assets and rarely to the point of affecting their lifestyle or financial security.
2. The tariffs outlined by President Trump yesterday will reduce everyone’s disposable income. For small-dollar donors, this will likely substantially reduce their giving even more than the declining trend over the past several years. And there will likely be higher unemployment in addition to higher inflation.
3. Affluent people are the least likely to be harmed by the tariffs or to change their behavior.
These truths point to a fundraising strategy that:
1. Reduces investment in raising smaller contributions from small donors. It is already expensive, and the ROI will decline further.
2. Invests in building your major donor pipeline.
3. Increases communication and stewardship with your more affluent donors.
4. Appeals to affluent donors for more significant gifts because they know you need it.
Donor Abacus can help.