Simplified: Sioux Falls has been and remains a strong community when it comes to people giving money. But according to a study released this week by nonprofit consulting firm Maximizing Excellence, most donors believe philanthropy overall in the city is weaker now than it was five years ago – which leaves less room for optimism moving forward.

Why it matters

  • Maximizing Excellence's "State of Sioux Falls Philanthropy" report was first conducted in 2020 amid economic uncertainty during the pandemic. Five years later, the report's reprisal shows local nonprofits on the whole haven't made meaningful progress – particularly when it comes to broadening the overall donor base.
  • Philanthropic leaders said they're seeing the same small group of donors asked again and again, leading to donor fatigue. That, paired with economic uncertainty, diminishing federal grant opportunities and belt-tightening from the city paints a rather bleak picture for Sioux Falls nonprofits.
  • It's not all doom and gloom, though. The report shows most philanthropists interviewed see philanthropy overall as a feather in Sioux Falls' cap. Moving forward, on potential solution is a greater focus on "collective action," or finding ways to bring lots of people together in grassroots efforts to raise money, instead of holding out for one big donation from an individual.
    • Additionally, the report cited a need for more emphasis on philanthropy among up-and-coming leaders and younger generations.
"To sustain what makes Sioux Falls the community it is, it cannot be business as usual for philanthropy," Founder and CEO Cindy Peterson said. "The findings urge Sioux Falls to shift the community's philanthropic mindset and make philanthropy more of a commonly held goal throughout the community."

Tell me more about the report

The four-page report includes data compiled from 30 interviews with established and emerging philanthropic leaders.

Here are some key stats worth noting:

  • About 2/3 of people interviewed said philanthropy in Sioux Falls is weaker today than it was five years ago.
  • Just over 60% said they're concerned about the future of local philanthropy.

The report also concludes that traditional fundraising models feel increasingly unsustainable, and as younger generations age into leadership roles, there isn't a clear "transfer of philanthropic responsibility" from one generation to the next.

These findings ring true with the challenges nonprofit leaders say they're facing.

  • A Sioux Falls Simplified survey conducted this spring found nonprofits reporting fewer donations, cuts in services, staff reductions and millions of dollars in anticipated revenue lost to federal budget cuts.

What happens next?

Maximizing Excellence is hosting a listening session starting at 8:15 a.m. Friday, Sept. 15 in the company's training room (in the commerce building on 8th and Phillips).

You can also read the full report here. It includes advice for nonprofits and data from donors on what they want to see and how they want to feel when they give.