Overcoming Challenges in Arts Philanthropy: The Future Is Bold, Joyful, and Already Underway

Even in Uncertainty, Donors Showed Up

According to Giving USA 2025, charitable giving in the U.S. reached $592.50 billion in 2024—a 6.3% increase over the prior year, and the highest total ever recorded. This growth wasn't driven by one-time windfalls or foundation surges. Instead, individual donors led the charge, showing a widespread return to generosity.

Here's what that tells us: Donors are still giving even when everything feels uncertain.

They're not waiting for perfect conditions. They're responding to what matters to them. And for arts and culture organizations? This isn't just good news. It's an invitation to dream bigger.

The Real Picture: Challenges That Spark Innovation

Let's be honest about 2025—it comes with its fair share of puzzles to solve. But after working with arts organizations across the country, our team at Donorly has seen how creative leaders are turning obstacles into opportunities.

Staff turnover is hitting hard. As Donorly’s Head of Client Success, Allison Gutstein from our team sees it, organizations are dealing with real "staff turnover" and "limited bandwidth." Teams are stretched thin, and just when you get someone trained, they often leave for better opportunities. The organizations that are managing this well are laser-focused on finding efficiencies to "streamline processes and work smarter, not harder."

Boards are having the wrong conversations. Here's what Allison notices: "When organizations are running on a deficit too often Boards are looking at how to cut programming as opposed to how to increase contributed revenue." It's a defensive mindset that feels safer but actually limits growth potential. The organizations breaking through are the ones pushing their boards to think bigger about fundraising investment.

Everything costs more. Head of Research at Donorly, Weston Ganz, sees it everywhere: "The cost of producing theatre and arts content is higher than ever." Salaries have to be more competitive, materials cost more, venues are pricier—so ticket prices have to increase too. And now every potential audience member is doing their own cost-benefit analysis: "Is it based on the creators or actors? Location? Unique experience? Is it getting good press?"

Community engagement is genuinely challenging. Connor Stribling, Consultant at Donorly, keeps hearing about struggles with "community engagement," "mission storytelling," and reaching "new audiences." It's not just about marketing—it's about fundamentally connecting with people in a post-pandemic world where habits and expectations have shifted. Lauren Siegel, Consultant at Donorly, sees one specific challenge: "engaging new attendees and hooking them in—educating them that the organization is a nonprofit." Many first-time patrons don't realize they're supporting a charitable cause, which creates a missed opportunity for deeper engagement and giving.

Collaboration is messier than it should be. Weston points out something that sounds simple but gets complicated fast: "Navigating collaboration, specifically when two companies of equal or varying sizes pool resources to have a co-production or use a space that isn't theirs. You're managing dual resources, two donor bases, different organizational cultures—it's a lot.

The political climate creates real concerns. Nicole Hall, Consultant at Donorly,  hears this from donors, board members, and staff: worries that "the current political climate may drive more charitable dollars toward social justice causes." While the data shows arts giving actually grew alongside other sectors (9.5% increase!), the anxiety is genuine and affects how people think about their giving priorities.

Programming is a bit less predictable than it once was. Lauren also points to a theater-specific challenge that's making fundraising more complex. Where theaters used to be able to plan for full season announcements—which in turn helped motivate patron renewals—now some are announcing show by show. This makes relationship building even more crucial. If the donor buys into the organization, they'll be more willing to sign on to an unannounced season.

Why the Data Should Make You Smile

Even with all these moving pieces, giving to the arts rebounded strongly by 9.5% in 2024. Arts, culture, and humanities was one of only four sectors to hit all-time highs even after adjusting for inflation.

While we're still analyzing how this compares to pre-2019 levels, the upward trajectory shows renewed confidence in arts organizations and their vital role in our communities.

Nicole captures it perfectly: "Although Arts & Humanities remains one of the smallest giving sectors in the U.S., this trend is promising. We need to communicate to our clients that this data shows that people deeply value arts and culture."

Your work matters. Donors see it. Now it's time to celebrate it.

The Organizations Writing the Future

While some organizations are still finding their footing, others are absolutely thriving. Here's what the winners are doing:

They're creating spaces people love to be in. The smartest organizations aren't just presenting art—they're building community hubs. Cafés, toddler programs, internships, gardens, gathering spaces. They're becoming essential parts of the neighborhood fabric.

They're building partnerships that actually work. These aren't token collaborations—they're genuine relationships. Local businesses become event partners. Artists become teachers. Everyone amplifies each other's success because they're all invested in the community's cultural vitality.

They're celebrating donor relationships over time. Allison sees organizations creating beautiful "individual donor impact reporting" that shows people exactly how their years of giving have built something extraordinary. It's not just stewardship; it's legacy celebration.

They're seeing individual donors step up in powerful ways. Weston has been moved by watching "real people step up and say, 'I'll help fill in this gap'" when government funding gets cut. These aren't just donations—they're statements. People making meaningful commitments that create momentum for others to join.

Strong leadership makes all the difference in these moments. Lauren highlights a client she works with as a strong example of all the above. As the artistic director, they have such a clear vision and want to ensure donors see that vision. New leadership can really reinvigorate fundraising!

Leading with Possibility, Not Problems

Here's what lights us up: the most successful arts organizations have stopped apologizing for existing. They've stopped leading with crisis and started leading with vision.

Because look at what you actually do: You spark imagination. You build community. You give people spaces to belong, to heal, to celebrate, to think. You employ artists and administrators. You attract visitors and make neighborhoods more vibrant.

Nicole reiterates: "Arts and humanities may not feel like an 'urgent need,' but they are vital to a thriving community. Be proud of the need you meet, and be sure to communicate it broadly."

This is work worth celebrating, worth investing in, worth building a future around.

Instead of asking donors to fix problems, you're inviting them to create something beautiful.

Digital Engagement That Builds Joy

Your donors are online, and they want to experience your mission digitally too. The organizations getting this right aren't just sharing pretty pictures—they're creating genuine connection.

They're posting photos from toddler programs that make grandparents smile. They're sharing behind-the-scenes videos that make people feel like insiders. They're celebrating scholarship recipients in ways that make donors feel proud to be part of the story.

Connor sees organizations using AI thoughtfully—to handle routine tasks so staff can focus on the relationships that matter most. As Allison puts it: "Learn how to use AI to improve efficiencies to give the staff time to focus on personal meaningful connections when they can!"

Technology at its best makes you more human, more connected, more able to celebrate what matters.

Legacy Giving That Tells Beautiful Stories

The most exciting trend we're seeing? Donors who want their gifts to create lasting narratives of impact.

They're asking wonderful questions: "What will my gift make possible 50 years from now? How will my grandchildren understand why this mattered to me? What story will this organization tell about the community we built together?"

Think beyond naming opportunities. Think about ways to weave donors into the ongoing story of your organization's impact. Video tributes, storytelling components, celebrations that make future impact feel tangible and joyful.

Building Your Bright Future

If you want to thrive and create lasting impact, here's where to focus your energy:

Fundraising infrastructure investment is crucial. Here's what Allison sees as critical: "Convincing orgs to invest in fundraising infrastructure is SO important and especially right now." Organizations that are thriving have systems that actually work, but too many are still trying to manage major donor relationships with spreadsheets and good intentions.

Tell your story with confidence. Connor's advice is golden: "Believe in your mission and tell that story. Look at the need from a donor's perspective and succinctly communicate why their support is crucial for your org specifically, not the field as a whole."

But remember that different donors need different messages. Lauren emphasizes the importance of segmentation: "Messages for your community members to inspire giving differ for each segment of your audience. Speak to them directly (as directly as you can) by utilizing segmentations and automating this segmentation when possible. It's not one-size fits all."

Nurture the human connections. Weston learned this beautifully during her fundraising days: "Art was the interest that connected us, but wasn't the only thing. Both the fundraiser and donor have lives beyond the arts, and don't forget to invest in the other parts. Less transactional, more human."

Your Invitation to Lead

Here's your moment: Stop fundraising from a place of scarcity. Start fundraising from a place of abundance and possibility.

Ask yourself: Are we inviting donors into a story they're excited to be part of? Are we celebrating what we create and the community we're building together?

The organizations getting this right aren't just raising money. They're building movements of people who believe in the power of art to transform communities. They're creating legacies of joy, beauty, and human connection.

The future of arts philanthropy isn't some distant dream. It's happening right now, in organizations that choose vision over worry, celebration over complaint, and community over isolation.

And that future? It's bright, bold, and full of possibility.

Ready to Build Something Extraordinary?

At Donorly, we partner with arts and culture organizations that are ready to step into their power and potential. Whether you're launching a capital campaign, deepening donor relationships, or building sustainable systems for growth, we help you create fundraising strategies that are joyful, authentic, and built to last.

Because the future of arts philanthropy isn't just arriving—it's being created by visionary organizations like yours, every single day.

Book a call with Donorly and let’s build the joyful, sustainable fundraising strategy your mission deserves.