October 8, 2024
This paper explores the untapped potential of the “Meaningful Middle” of philanthropy—a diverse set of donors giving between $1 million and $25 million annually. Our research considers and attempts to define the unique role these donors play, the challenges they face, and the various strategies and structures they can employ to maximize their impact. Meaningful Middle donors are vitally important to organizations. Additionally, the information is intended to be useful for nonprofit leaders and board members who want to further or form relationships with Meaningful Middle donors.
Making a Philanthropic Impact Is Complex Managing wealth and charitable giving is complex and challenging. Limited staff support, lack of internal systems and Isolation from “professional” philanthropic networks make giving back harder than it should be. Most Meaningful Middle donors are operating with 0–5 staff. Strategies exist for philanthropists and strategic partners with service providers—investment advisors, philanthropic advisors and tax specialists. There is no ‘right way’ to thrive as a Meaningful Middle donor—but there are existing strategies.
Tremendous Impact, Less Attention Meaningful Middle donors are individuals, families or foundations giving $1–25 million annually. They bridge the gap between mass-market donors and mega-philanthropists and often support local initiatives and medium-sized organizations. Many Meaningful Middle donors hold DAFs, which give out 20% annually versus the average 5% that foundations distribute.
Megadonors Are Often Inaccessible to Nonprofits and Vice Versa Most nonprofits are seeking new donors but don’t know where to look. Seventy-five percent of US charitable giving comes from individuals and yet, most organizations can’t identify or access megadonors. Supporting local initiatives is one area where
Meaningful Middle donors play a crucial role and have significant leadership opportunity in the broader philanthropy ecosystem. This type of place-based philanthropy is often a poor fit for megadonors, who frequently have little or no connection with specific local communities. But Meaningful Middle donors—who focus on communities where they built businesses, where they raised families, and where they currently invest—do.
Next Gen Philanthropists Need a Roadmap As we enter into a historic $30 trillion wealth transfer across the United States, much of this transfer will be in the form of assets for which the next generation may not have ready use. Engaging in an assessment of potential philanthropic value of less obvious balance-sheet line items is worthwhile for any donor seeking to expand their philanthropy.
Nonprofits Need the Meaningful Middle Meaningful Middle donors can bring the best of both worlds to social change work. They bring relational capital to help local actors and organizations grow and diversify, often have interest in exploring structures and strategies beyond traditional grantmaking, and the ability to give at levels beyond the mass market donor.
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