Major Donors Give Big During Recessions w Jimmy LaRose

Major donors have a history of stepping up their giving when economic storms arrive. It seems counterintuitive – if markets are down and uncertainty is up, why would wealthy philanthropists give even more? The answer lies in a potent mix of financial resilience, strategic opportunity, and data-driven confidence. Even in a recession, high-net-worth donors remain equipped and empowered to be generous. They understand that economic downturns, while challenging, are also cycles rich with opportunity and truths that transcend the fear of the moment.

Market Corrections Make Major Donors Money

One key reason major donors continue to give big in recessions is simple: they actually grow their wealth in these periods. Economic downturns have a silver lining for those prepared to seize it. Markets often overshoot on fear, driving asset prices down below their intrinsic value. High-net-worth individuals, with the guidance of skilled financial advisors, recognize these moments as prime investment opportunities. Rather than retreating, they lean in – buying quality stocks at a discount, purchasing distressed assets, or refinancing debt at favorable rates. As one market strategist noted, if a recession is avoided and panic-driven selloffs abate, there can “ultimately [be] a buying opportunity” in oversold sectors. In other words, a correction sets the stage for savvy investors to capitalize on market inefficiencies. This ability to play offense during a downturn means some wealthy donors may actually see their net worth rise over the full cycle of a recession and recovery. For example, those who bought into stock market dips in past recessions often reaped outsized gains in the subsequent rebound. Far from fearing recessions, many well-advised investors view them as part of the wealth-building journey – a chance to buy low and later, sell high or enjoy higher dividends.

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Because they can emerge from recessions even stronger financially, major donors feel empowered to give generously during the rough patch. Why wait for the recovery to make an impact, when you can do good and position yourself for gains at the same time? This mindset turns a downturn into an opportunity for strategic generosity. Donors often consult with their family offices and advisors to align their philanthropy with their investment strategy. For instance, if certain industries are temporarily battered by tariffs or market pessimism, donors might both invest in those undervalued sectors and increase donations to related causes. They know that when the economy rebounds – as it invariably does – their bold moves will likely leave them with even greater resources. Indeed, many high-net-worth individuals keep “dry powder” (cash reserves) specifically to deploy during recessions, confident that short-term losses will translate into long-term gains. As one analysis highlighted, after a period of steep market declines, “futures markets [may] price in” interest rate cuts by central banks, signaling easier monetary conditions ahead. Wealthy investors interpret such shifts as tailwinds that can propel a strong recovery. By acting when others are fearful, they set themselves up to profit from the eventual economic upturn – and they are fully aware of this potential upside. This foresight makes them more willing to commit large donations even while the downturn is underway, because they anticipate being made whole (and then some) when growth resumes.

Guided by Data, Not Fear or Hype

Perhaps the most inspiring trait of major philanthropists in a recession is their data-driven optimism. These donors do not make decisions based on political rhetoric or media fearmongering. Instead, they ground their strategies in measurable economic indicators and factual analysis. While sensational headlines might scream doom – focusing on tariff wars, market crashes, or partisan drama – seasoned donors and their advisors dig into the real numbers. If the data tells a more nuanced story, they listen. For example, despite waves of negative news, the U.S. labor market might remain remarkably strong. In April 2025, even as recession worries brewed, “jobless claims [were] remain[ing] at low levels,” easing recession fears. A weekly initial unemployment number around only ~223,000 is “well below worrisome levels” historically, indicating the job market is still healthy. High-net-worth donors see such statistics and take heart – people are largely still employed and spending, which buoys the economy’s foundation. Likewise, they watch consumer spending trends closely. At one point, consumer spending literally “lit a fire under the U.S. economy,” fueling growth. If consumer expenditures are holding up or only dipping slightly, that’s a factual sign that the sky isn’t falling, no matter what pundits opine. Even when consumer confidence flickers or headlines note inflation’s return, major donors contextualize it: Is core consumer spending truly collapsing, or just normalizing from high growth? They parse the truth in the numbers rather than succumbing to blanket pessimism.

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This evidence-based approach extends to other indicators as well. Sophisticated donors examine tariff impacts, interest rate changes, manufacturing data, and more to form a full economic picture. They understand, for instance, that new tariffs might jolt certain industries and spook the stock market, but they also look at how companies adapt and whether domestic demand stays strong. Often, they find that businesses and consumers are more resilient than feared. As RBC Wealth Management observed during a tariff-induced market scare, companies have proven to be far more adaptable and resilient than they’re often given credit. Rather than panicking over trade-policy news or political posturing, wealthy donors trust hard economic truths: innovation continues, people still need goods and services, and many corporations will navigate the challenges. Additionally, these donors pay close attention to central bank actions. When they see the Federal Reserve responding to a slowdown by cutting interest rates or when inflation appears to be stabilizing, it reassures them that conditions will eventually improve. In short, data > drama for major philanthropists. This rational outlook means that even in a recession, their confidence in the eventual outcome remains high. Guided by numbers, trends, and historical context, they refuse to retreat into fear. Instead, they double down on their missions, supported by the conviction that the real economy (jobs, spending, production) will ultimately drive a recovery – and that their giving can help society make it through the storm.

Wealthy and Resilient – Even in a Downturn

Finally, the reason major donors continue to give big in recessions is simple: they remain very wealthy, even after a market correction. Ultra-high-net-worth individuals went into the downturn with substantial capital cushions, and a pullback in asset values typically leaves them with plenty of financial firepower. For perspective, recent market data shows that a steep selloff – while painful – hardly wipes out the gains of prior years. As of early 2025, the S&P 500 was down about 17% from its all-time peak. That decline, though significant, still means an investor who held a $100 million portfolio at the peak might have roughly $83 million after the correction – hardly a dire outcome. Moreover, many wealthy investors hold diversified, defensive portfolios designed to cushion downturns. For example, dividend growth stocks (held widely by high-net-worth investors) have historically “performed better than the S&P 500 in not-so-great years and in bad years,” providing a downside cushion during tough times. These resilience strategies ensure that major donors’ wealth doesn’t evaporate when the economy dips – in fact, their fortunes often remain far above average, enabling continued generosity.

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Their financial resilience is often bolstered by professional wealth advisors and family offices who plan for volatility. Long before a recession hits, savvy investors prepare by diversifying assets, taking some profits at highs, and keeping cash on hand. So when a downturn arrives, they are ready. Instead of being overleveraged or panicking to sell, many wealthy individuals find themselves in a strong position – they’ve lost some value on paper, but their lifestyle and giving capacity remain intact. This peace of mind empowers donors to commit to big gifts even as headline indexes are slumping. They know they had a buffer going in, and that buffer is usually still there. As RBC Wealth Management analysts put it, “stock market corrections… are admittedly difficult to endure” but successful investors remember that they are investing in robust companies, not in fleeting headlines or politics, and companies tend to be “adaptable and resilient” over time. In short, major donors understand that a recession is not a personal financial ruin for them – it’s a temporary valuation drop in assets they’ve carefully grown over decades. With that perspective, they feel both an obligation and an opportunity to give back when it’s needed most.

Confidence, Opportunity, and Strategic Generosity

All these factors culminate in an overarching theme: confidence. Major donors give big in recessions because they are confident – confident in their own financial stability, confident in their investment strategy, and confident in the fundamental resilience of the economy. This confidence is contagious and strategic. They view their philanthropy during downturns not as a risky bet but as a timely intervention and a wise investment in the future. Just as they expect their portfolio moves to pay off when the cycle turns, they believe donations made during hard times will yield outsized impact. Needs are greater during recessions – communities struggle, unemployment and uncertainty increase – so a dollar given now can do more good than a dollar given in a boom. Major donors recognize this opportunity to create positive change when it’s needed most. They often recall that some of the greatest fortunes and social initiatives are born in times of crisis. Rather than hunkering down, these philanthropists choose to lead by example, providing nonprofits the significant funding required to weather the storm.

Crucially, high-net-worth donors plan their generosity. It’s not impulsive; it’s strategic. They align their giving with both their values and the economic outlook. If indicators show that a recession is likely to be shallow and that recovery is on the horizon, they might accelerate multi-year pledge schedules to get funds working sooner. They know their wealth will likely bounce back with the market – history shows that after recessions, equities often rebound strongly, rewarding those who stayed the course. This knowledge frees them to focus on the long term. As one advisor quipped, the best approach in a market shock is to “take some deep breaths and count to 100” before making big changes. Major donors embody that patience. They aren’t pulling back in fear; they’re patiently proceeding with purpose. In doing so, they send a powerful message of hope. Their big gifts during a recession signal to everyone that better days are ahead – and they’re willing to back that belief with their treasure.

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In sum, major donors give big in a recession because they can, because they often get even richer by wisely navigating downturns, and because they trust data over doom-and-gloom. They see opportunity where others see crisis. With significant wealth still at their disposal and often growing, they feel a responsibility to use it for good when times are tough. Guided by economic truth rather than headlines, they remain confident that their philanthropy is both sustainable and desperately needed. This blend of pragmatism and generosity results in courageous, strategic giving at exactly the moment it can have the greatest impact. In economic uncertainty, major donors don’t back down – they step up, turning adversity into a time of opportunity for building a better future.

Sources: Recent financial analyses and market commentary provide insight into donor behavior. RBC Wealth Management’s advisory notes on enduring market corrections and finding opportunities rbcwealthmanagement.comrbcwealthmanagement.com, along with MarketWatch economic reports on employment and consumer trends marketwatch.commarketwatch.com, illustrate why wealthy individuals remain confident and generous during recessions.

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