Why Donations Are Down (and What to Do About It)

Since the recent tariff announcements, donations on Zeffy have dropped 37% compared to the same period last year. It’s a sharp and unusual shift, based on over $100 million in monthly giving through our platform.

This isn’t a typical seasonal dip. Something’s changed—and for many nonprofits, it’s already being felt.

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Why are tariffs driving the drop in donations?

Between the data and what we’re hearing from nonprofits, two main reasons stand out for why donors are giving less.

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1. People are worried about the stock market

Tariffs have hit global markets hard, wiping out trillions in wealth. American consumers—especially those near retirement—have been hit the hardest. When financial confidence drops, donations slow down. Since early April, this group has started to hesitate, and it’s showing up in donations.

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2. When the market drops, donors pull back

Most charitable dollars come from high-income households, and much of that wealth is tied to the stock market. When confidence dips, so does giving. These donors tend to give more when the market feels stable.

In April, donations over USD $500 dropped by 50% compared to the 2024 baseline, while donations under $500 dropped by 30%. It’s a sharp difference—and fits the broader trend we’ve seen since the April 2 tariff announcement, with larger gifts hit hardest.

But it’s not just major donors. Everyday supporters are feeling the pressure too, especially with rising costs and economic uncertainty. The result is a predictable pause: many are waiting to see where things go before making a gift.

That kind of hesitation is normal. But for nonprofits used to consistent support, it can make planning much harder.

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What can nonprofits do right now?

Between federal funding freezes, rising costs, and more demand for services, nonprofits are already carrying a lot. This moment calls for care, not panic.

Here are two principles to guide your next move:

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1. Hold off on fundraising if you can

If your next campaign isn’t urgent, consider waiting. Many donors are under financial pressure right now, and you’ll likely see better results when confidence rebounds. Timing matters—and patience can pay off.

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2. If not, be open about what’s going on

If you do need to ask for support, be transparent. Explain what’s changed, how it’s affecting your work, and how the funds will be used. Donors appreciate honesty, especially when they know you’re not asking lightly.

They’re seeing the same headlines you are. Acknowledge the moment, reinforce your mission, and share the real impact of their support. And be thoughtful about who you’re asking, especially if they’ve given recently.

These small steps build trust. They’ll help you stay connected to your donors—and weather this storm together.

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Don’t lose sight of your mission

The recent market dip may feel sharp, but it won’t last forever. Over time, markets recover, and generosity tends to follow. Since 1930, the stock market has delivered an average inflation-adjusted return of 6.5% per year.

If you’re not sure why you’re fundraising right now, it may be worth waiting. And if you are, be clear, be honest, and stay focused on what really matters: your mission and the people who believe in it.

Trends like this usually level out. In the meantime, communicate with care, be transparent about your needs, and trust that brighter days are ahead.

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