Most donors want to give locally. Most don’t end up doing it. Researchers are calling this the nonprofit visibility gap, and it’s more common than you might think.
Giving Compass’ Madeleine Alegria and Brandolon Barnett’s peer-reviewed study, published in The Foundation Review, a publication of Dorothy A. Johnson Center for Philanthropy, explores what’s behind the gap and what it takes to close it. Below are the key points of the study.
Despite rising interest in supporting local causes, many donors continue to give to large, nationally recognized nonprofits. This reflects ongoing structural barriers such as limited nonprofit visibility, decision fatigue, and search environments that prioritize brand familiarity.
At the same time, small-dollar giving has declined for three consecutive years, highlighting the need for more transparent, accessible, and trustworthy tools to support donor decision-making (Childress, 2024; Lilly Family School of Philanthropy, 2023).
In a 2024 evaluation study, 291 U.S. donors were randomly assigned to use either the Giving Compass Guide to Good platform or general internet tools to select a new nonprofit for a $50 donation. Giving Compass users were significantly more likely to give locally, selected nonprofits with smaller net assets, and reported higher trust in the sector by the end of the study.
Findings suggest donor tools shaped by behavioral science and ethical AI design can support more intentional and equitable giving. As foundations and intermediaries continue to invest in digital infrastructure, this study points to the importance of search transparency, algorithmic accountability, and capacity-building for smaller nonprofits.