The Way Major Donors Give During a Recession May Surprise You!

I’ll never forget the time I asked a major donor for a gift during an economic downturn. It was 2008, the market was in freefall, headlines were screaming panic, and everyone in the nonprofit world was tightening their belts. But not Colorado real estate developer Theodore Temple Beckett. Ted, leaned back in his chair, smiled, and said, “Jimmy, you and your organization need my help now more than ever—how much do you need?” That moment stuck with me. Over the past 35 years, I’ve sat across from hundreds of major donors in boom times and busts, and one thing is clear: recessions don’t stop generosity—they reveal it. This article is drawn from decades of firsthand experience with philanthropists who don’t just survive downturns—they give big during them.

During periods of economic downturn, many nonprofits brace for the worst—expecting giving to dry up, donors to retreat, and fundraising to falter. But those who work closely with major donors know that’s not how it works. It may be counterintuitive, but savvy nonprofit executives know RECESSIONS ARE A SEASON TO RAISE YOUR BIGGEST GIFTS.

Why?

Because the affluent, the ultra-high-net-worth individuals (UHNWIs), and family offices don’t play by the same financial rules as the average consumer. Their wealth strategies are anchored in truth, driven by math, and deeply divorced from emotional economics. In fact, many of them don’t just weather recessions—they win them.

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This article explores why major donors continue to make transformational gifts—even (and especially) in recessionary times—and what fundraisers should understand to better engage them during these seasons.

They Were Rich Before the Crash—and Still Are

When a market correction hits, it doesn’t wipe out a billionaire’s wealth—it simply repositions it.

Most major donors have accumulated vast financial reserves long before a downturn. A 15% market dip may eliminate “millions” in gains, but if you’re sitting on a $40 million portfolio, that still leaves you extraordinarily well-positioned to give. The difference is not just math—it’s mindset.

Wealthy donors understand that markets go through cycles. They are not operating with the scarcity-driven, paycheck-to-paycheck fears that dominate middle-income households during recessions. This insulation from panic is precisely what makes them philanthropic powerhouses in volatile times.

They Make Money During Recessions

Recessions aren’t downturns for everyone. In fact, many family offices and investment firms thrive in volatile markets. Skilled asset managers and private wealth advisors know how to capitalize on:

• Discounted equity positions after a market correction
• Emerging domestic industries boosted by tariffs
• Lower interest rate environments ripe for real estate and business expansion
• Resilient consumer sectors that indicate long-term trends
• Strategic alternatives like distressed assets or turnaround funds

These are not accidental wins—they’re calculated moves. Major donors who make large gifts during recessions are often doing so from new wealth they’ve just created in a down market.
They didn’t panic; they positioned.

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They Ignore Economic Politics and Embrace Economic Truth

What’s perhaps most misunderstood about major donors is how detached they are from the emotional rollercoaster of media, political news, or social narratives.
Where others see chaos, they see calculus.

Where headlines scream recession, they study job growth, consumer spending patterns, and interest rate trajectories.

One reason major donors give in recessions is because they don’t let opinion interfere with opportunity. Whether it’s new tariffs that disrupt foreign imports (and thus create domestic growth opportunities), or a Fed decision that lowers borrowing costs and stimulates capital markets, these individuals are following numbers—not narratives.
That’s why they often see giving during recessions as both a moral duty and a strategic act. They’re not “waiting it out.” They’re leaning in.

They Recognize Opportunity in Uncertainty

Let’s look at the broader picture. In early April 2025, the stock market corrected nearly 10%. Predictably, fear rose. But seasoned investors saw something else: buying opportunities.
Smart philanthropists know that capitalizing on undervalued assets often yields high ROI—and the same applies to charitable giving. When nonprofits are struggling the most, that’s precisely when major donors can create maximum impact. It’s a version of the same contrarian investment principle: buy low, sell high. In philanthropy, that looks like giving high when others pull back.
When nonprofit budgets are strained and social needs skyrocket, donors see the chance to be difference-makers—heroes in the storm.

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They Confront “Psychic Poverty”

Let’s be honest: even wealthy people have emotions. Yes, they’re grounded in math, but they’re also human. And when they watch their portfolios drop by seven figures, even temporarily, they can fall into what’s called “psychic poverty.”

Psychic poverty is the feeling of loss or lack—even when immense wealth remains.

They’ll say things like, “I’ve lost millions this week,” or “The market wiped out my gains,” all while standing in a 12,000-square-foot home with original art on the walls and Bentleys in the garage.
I once joined Christy Baker, the marvelous CEO of RSVP Enid in Oklahoma, on a donor call with “Jack,” who opened the meeting with:

“This market crash has cost me millions!”

Without missing a beat, Christy, with a twinkle in her eye, asked:

“Jack, are you trying to tell me you’re broke?”

He paused… then laughed.

“No, I’m not broke. How can I help?”

That’s the secret: help donors reframe their losses not as danger signs, but as noise within the greater signal of long-term abundance. Once they regain perspective, the generosity flows again.

They Are Your Solution During Unstable Times

Recessions test everyone. But for wealthy donors, they also ignite a sense of duty. They understand that you have bills to pay. When the world is reeling, they ask themselves, “What good can I do with what I have?” They demonstrate this with their continued support for charitable causes despite economic challenges.

This desire for impact—paired with the reality that they’re still wildly resource-rich—drives big gifts. Donors hesitate to spend on luxuries or new investments in uncertain times. They prefer to give philanthropically. Why? Because it creates meaning. It offers legacy. It combats helplessness.

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Final Thoughts: Nonprofits, Take the Call

If you’re a nonprofit executive or board member, do not retreat during a recession. Lean in.

Your major donors still have wealth. Many are growing it. All of them are looking for significance. Don’t assume they’re pulling back—ask them how they’re really doing. Let them talk. Listen for signs of psychic poverty and gently reframe. Then, with courage and clarity, make your ask.

Recessions may shake the world—but with major donors, they open doors. Your job is to walk through them. You see, .MAJOR GIFTS FUNDRAISING IS RECESSION PROOF!

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How Major Donors Give During Recessions May Surprise You was first posted at INSIDE CHARITY

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To learn more about Jimmy LaRose visit https://JimmyLaRose.com