3 takeaways for donors and nonprofits from the Catalyst Fund

Donors can drive impact through grantmaking at the community level. 

Grantees of the Catalyst Fund—a grantmaking program led by Fidelity Charitable’s Board of Trustees—engaged 2.2 million donors in 2024, with over $25 million flowing to nonprofits in key priority states.

A year after shifting its focus to addressing funding disparities, the Catalyst Fund sought data and feedback from grantees about the nonprofits and donors with whom they’ve engaged. Thirty-two grantees submitted reports to the Catalyst Fund team in 2024, providing three key takeaways for donors.

1. Local giving has both powerful momentum and room to grow

In the feedback from grantees, we learned that donors are increasingly drawn to supporting nonprofits in their local communities, especially in underfunded regions. If you’ve considered giving locally but haven’t yet acted, you’re not alone. Even small, well-placed gifts can make a meaningful difference in the areas that need it most.

Of the $75 million total given to nonprofits across the country by donors working with our grantees in 2024, more than $25 million has been directed to local organizations in states in the South Central and Mountain West regions of the U.S. Most grantees report pivoting to focus more on prioritizing these regions, and they say they’re open to collecting more data on outcomes so we can continue to track the ongoing impact.

Many donors tell our grantees that they want to feel more connected to the organizations and communities they support—especially at the local level. Additionally, younger donors show growing interest in global causes, such as climate and humanitarian relief. But donors say they’re often overwhelmed by frequent, impersonal asks from nonprofits. This leads to choice overload, hesitation, and missed opportunities to give meaningfully, according to our grantees.

Our grantees’ experience suggests that starting small, trying exploratory grants, and viewing risktaking as part of the learning process can help donors feel more confident and engaged.

2. Relationships matter more than ever

Reflecting on research conducted by Catalyst Fund grantees among nonprofits, we’ve found that nonprofits echo donors’ desire for sustainable relationships while recognizing that frequent requests can be overwhelming. Nonprofits tell our grantees that they’re committed to long-term connection but aren’t counting out one-off matching campaigns or outreach videos that might act as “initiation moments,” laying a foundation for future giving.

- Founding member, Las Vegas Women in Business for Good on Grapevine

Catalyst Fund grantees report that collective giving, such as with giving circles, is on the rise. This is supported by research from the Dorothy A. Johnson Center for Philanthropy, which found that over $3.1 billion was contributed via collective giving groups between 2017 and 2023. These models offer community and shared learning to donors and a broader reach for nonprofits.

Both donors and nonprofits value authentic, sustained connections. Consider engaging with organizations beyond a donation by learning about their impact goals, listening to their stories, or exploring volunteer opportunities. These touchpoints help build trust and deepen your philanthropic experience.

3. Small changes can unlock greater impact

In the experience of Catalyst Fund grantees, nonprofits are leaning into authentic storytelling to connect their values with donors’ goals. However, many struggle to maintain a scalable, cost-effective digital presence. According to Nonprofit Tech for Good, nearly one-third of U.S. nonprofits haven’t updated their website in more than three years, even though many donors encounter nonprofits online and their first impressions are known to have a significant impact on their contributions. Focused attention on digital presence can be a simple but effective way to move the needle for many nonprofits.

- Somos El Poder Fundraising Con Ganas participant

Fundraising capacity-building courses and sustainable relationship-building take time, but we can already see short-term indicators of change: Catalyst Fund grantees shared that 86% of participating nonprofits reported implementing a change based on learnings from these offerings.

From providing unrestricted funding “where it’s needed most” to introducing promising nonprofits to people in your network, you can play a critical role in helping organizations grow. Thoughtful, flexible giving, especially when paired with a willingness to experiment, can empower nonprofits to adapt and lead to lasting change.