What is Giving Compass?
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When planning their gifts, people often consider their passions, current events, recommendations from friends and family, or well-known organizations. It is another step to think about how donations support under-resourced communities.
Philanthropic Funding Gaps
When it comes to which nonprofits receive donations, there can be bigger differences than many people realize. For example, BIPOC-led nonprofits receive fewer corporate donations (58%) compared to white-led organizations (71%). Other funding disparities exist as well. The Latinx community represents 18% of the US population but only receives 1.3% of donated dollars. The Asian American and Pacific Islander community, the fastest-growing racial group in the country, receives 0.2% of foundation grants. Indigenous people comprise 2% of the US population but only 0.23% of philanthropic funds are directed to Indigenous-led organizations.
Grassroots organizations and those committed to long-term systems-change, rather than direct-service also are more often overlooked.
Why Donors Need an Impact-Driven Approach
Being informed about causes, nonprofits, and the funding dynamics of philanthropy helps people make smarter choices that align with their values. It’s also an important step towards viewing philanthropy as an investment in the changes one wants to make in the world. However, in an era of information overload and diverse societal challenges, finding the right tools to make informed decisions can be difficult. Donors need simple, research-backed, unbiased educational resources.
Guide to Giving Better in 2025
To support donors committed to an impact-driven strategy, Giving Compass created The Guide to Good Giving. This guide ensures every dollar and every hour a donor gives counts.
Covering multiple stages of the giving journey — from researching causes and selecting nonprofits to setting giving goals and measuring impact — this guide helps donors:
Adopt impact-driven philanthropy practices
Impact-driven philanthropy (IDP) is the practice of investing time, talents, and resources thoughtfully and intentionally to advance meaningful change. By using IDP principles and practices donors can take a step closer to seeing the intersections between complex social issues and advocate and fund solutions accordingly.
Question assumptions about giving
Many myths influence giving, from the belief that high overhead signals inefficiency to the idea that grassroots organizations can only have a small impact. Donors will learn to identify these philanthropic falsehoods and recognize the ways shifting their behavior can lead to more impactful giving.
Set, track, and measure giving goals
Beyond setting financial or time-based goals, donors can incorporate community-based approaches, such as supporting underfunded nonprofits, prioritizing BIPOC-led organizations, or promoting grassroots groups within their networks. Setting, tracking, and measuring these goals ensures accountability and commitment to making the biggest impact.
Filled with actionable strategies, the Guide to Good Giving is your first step towards transformative giving. Download your copy and have confidence you are making a difference.