How to give smarter: 4 Lessons from the Catalyst Fund

Discovering strong nonprofits, giving with confidence, and funding staying power

If you’ve ever wondered, “Am I making the best use of my generosity?” you’re not alone. Many donors want to feel confident that their gifts are supporting effective organizations, not just the most visible ones.

Since 2023, the Catalyst Fund has focused on organizations that help engage donors (through education and community connection), elevate nonprofits (so more people learn about their work), and strengthen the nonprofit field (by supporting research and collaboration). The aim is simple: to help direct more individual giving to effective but underinvested nonprofits.

Using experience, reported data, and insights shared from grantees, the Catalyst Fund has accumulated a wealth of knowledge over the last year. While certainly not comprehensive, these learnings share insights across three areas: what grantees are learning from the research they were funded to do, what grantees are learning as they reflect on their work, and what the Catalyst Fund is learning from its grantmaking.

These learnings point to a hopeful truth: Small changes in how nonprofits are recommended, how stories are told, and how communities connect can make it easier for donors to discover promising nonprofits and give in ways that truly make a difference.

First, a quick reality check: Donors often want to support the most effective work and the communities with the greatest need, but it’s not always easy to see what nonprofits are most underinvested. Visibility gaps, uneven access to fundraising and storytelling resources, and differences in trust and networks can leave many high-impact organizations overlooked.

Here are four simple practices to help your giving go further through finding great nonprofits, learning what’s needed, acting with confidence, and supporting long-term results.

1. Discover on purpose: Widen your lens beyond the most visible nonprofits.

Most of us give to the organizations we already know. That’s natural, but it can unintentionally divert dollars from high-impact, community-rooted nonprofits that lack big marketing budgets or national name recognition. A simple habit of using trusted curation can help donors consistently find strong organizations they might otherwise miss.

What you can do: Choose one or two “discovery partners” (attend an event at your local community foundation (opens in new tab or window),  join a giving circle (opens in new tab or window), or use a platform such as Giving Compass’s Guide to Good (opens in new tab or window) or Charity Navigator (opens in new tab or window)) and use them to build a short list of nonprofits before you do deeper due diligence.

2. Give where you can build trust: Stay close to a community and learn what progress looks like.

Place-based giving works best when it’s rooted in relationships. When donors listen to local leaders and understand the community’s definition of success, they tend to give more consistently and their support is more likely to match what’s needed.

What you can do: If you are drawn to a particular place (a hometown, a special region, or a “second home” community), you can start by listening. Find out who is trusted locally and what outcomes matter to community members, ask staff from nonprofits you already support for referrals on who else you should meet with, and then choose a giving approach that is sustainable, such as providing recurring or multiyear support.

3. Make it easy to follow through: Reduce decision fatigue with a simple plan.

When giving feels complex, it’s easy to postpone decisions or default to the familiar. Donors who sustain impact over time often home in on a few priorities, develop a decision process they trust, and then act. 

What you can do: Set a goal of one small next step to complete this month, such as making a first gift, starting a recurring donation, inviting a friend to attend a nonprofit event with you, or signing up for a volunteer opportunity.

4. Fund staying power: Support capacity and flexible dollars, not only programs.

Many nonprofits can deliver strong results and still struggle to sustain them without the basics: staff capacity, fundraising systems, evaluation and learning opportunities, and clear communications. Flexible support helps organizations respond to changing needs and invest in the infrastructure that keeps their impact going.

What you can do: Each year, add one “capacity-forward” gift, such as unrestricted or “where it’s needed most” support, alongside program support.

The year’s learnings are encouraging. When donors are invited in with clarity, trust, and a sense of community, more giving reaches promising nonprofits and more nonprofits build the capacity to keep serving over the long term. Thank you for being the kind of donor who keeps learning, keeps showing up, and helps make generosity easier for others too.