Philanthropy in America—and giving to education specifically—is the strongest it has ever been, according to the just-released Giving USA 2018: The Annual Report on Philanthropy. But, amid political and legislative shifts, the future of giving may be uncertain. What will matter most, say nonprofit leaders, is what has always anchored advancement: relationships.

"There is a huge amount of really thoughtful relationship-building going on," said Sue Cunningham, CASE president and CEO, during a June 13 Campbell & Company webinar. There, she and fellow philanthropy experts discussed the Giving USA data and trends. "There are many, many individuals involved [with philanthropy], whether they give as alumni or corporations. This is what happens when people want to have a profound impact," she said.

Giving Increases Across the Board

This year's Giving USA data paint the picture of a thriving charitable giving sector. Across the country, nonprofit organizations raised $410 billion in 2017. Adjusted for inflation, that's a 3 percent increase over 2016. Almost every sector—arts, health, the environment—posted growth in giving. (Only international affairs organizations recorded a decline.) Giving to education jumped 6.2 percent (4.0 percent, adjusted for inflation) to $58.90 billion—although it didn't grow as dramatically as giving to arts or health organizations (an 8.7 percent increase and 7.3 percent increase, respectively).

What's behind the increases in giving? Several factors are likely at work, the report explains:

• First, megagifts continue to be on the rise. Giving USA recorded $4.1 billion in mega-gifts from individuals and $850 million in mega-gifts by bequest. A good portion of those are for education: In 2017, according to a study by the fundraising-consulting firm Marts & Lundy, the value of mega-gifts to colleges and universities rose 25 percent compared to 2016. Three out of four reported gifts of $10 million and up last year went to higher education. 
• Second, while individual giving generally stayed the same, foundation giving is up. Foundation grants grew last year to $67 billion, up 4 percent since 2016.
• Third, the economy—which significantly impacts giving-is strong, according to the report. 
• The final variable impacting philanthropy could be called "the Trump effect." Giving to progressive causes (such as environmental protection) surged after Donald Trump's 2016 election as president. Mollie Marsh-Heine, vice president of development at Earthjustice, called it "fear-based giving."

Despite the strength in this year's giving data, the future of philanthropy in America is somewhat uncertain, panelists agreed. Will donors who were spurred by "fear-based giving" in 2017 continue to give this year, next year and beyond? How will the 2018 tax reform bill shift giving patterns? Though mega-gifts may grow, how will mid-level donors give in the future?

"There's one way of looking at this data [and saying] we don't have control over it," said Peter Fissinger, president and CEO of Campbell & Company. "But we consistently see some nonprofits do better than others. They take the opportunity to build strong relationships with donors."

Relationships, stressed Cunningham, remain at the core of advancement, regardless of what the future holds.

"At the heart of it is having an org vision where you can be clear about how philanthropy supports the institution," said Cunningham. "Think about how your organization is perceived from the outside in. Think through the donor experience. Build that to be as effective as it can be."

This article is from the June 2018 BriefCASE issue.