Partner Article

The top seven nonprofit fundraising trends to watch in 2025

In 2024, charities faced steep hurdles, from scarce grant funding to drops in individual donations due to economic pressures and global instability. Individual giving decreased, partly due to the cost-of-living crisis, partly due to geo-political crises, partly due to a sense of pessimism. 

In fact, inflation has impacted 47 per cent of American’s charitable giving — and in 2022 — they donated the smallest amount in 30 years. As the nonprofit landscape becomes more competitive, organisations must adapt to new trends to stay resilient, relevant, and impactful. 

Here are the top fundraising trends to watch in 2025 that could help you thrive.

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1. Growing competition in the nonprofit landscape
The nonprofit sector has seen an influx of new organisations, each with unique missions, but this growth has led to greater competition for the same pool of donors and funding. With the number of registered nonprofits increasing every year, standing out has become challenging. 

Every year, nonprofits have 100,000 additional organisations competing for donors and donations, donations that are continually diminishing in value. In 2025, the key will be to hone in on what makes your mission unique and find new ways to tell your story to potential supporters.

Tip: Nonprofits need to sharpen their emotional positioning and brand messaging to capture attention. Developing a unique brand voice and investing in digital outreach can help differentiate your nonprofit, making it memorable in an increasingly crowded sector.

2. Overcoming donor fatigue
Retaining existing donors is more cost-effective than acquiring new ones, but it requires intentional strategies. With individuals donating less in 2024 due to growing inflation and financial struggles, nonprofits are turning to more personalised engagement efforts to build loyalty. Expect to see nonprofits focusing on creating donor journeys that make supporters feel connected and valued.

Nearly seven in 10 affluent donors said their personal values or beliefs led them to support specific nonprofits, and six in 10 indicated their interest in an issue led them to give.

Tip: Use storytelling to illustrate the impact of donations and maintain regular, authentic communication that goes beyond the “ask” and more toward gratitude. By fostering a culture of transparency and trust, nonprofits deepen emotional connections and can boost donor retention in a challenging environment.

3. Using AI to identify giving opportunities
AI and machine learning are transforming how nonprofits understand donor behaviors and predict giving trends. Through predictive modeling, nonprofits can identify patterns and preferences among donors, helping them anticipate who is likely to give, when, and at what level. 

These insights enable organisations to tailor appeals, optimise campaign timing, and personalise donor outreach, leading to higher engagement and increased donations. Even with these advancements, it’s important to balance technological integration with ethical considerations and human empathy to maintain trust and authenticity in donor relationships.

Tip: Investing in AI tools might seem daunting, but even basic donor management software now offers AI-driven features that can provide actionable insights to help boost fundraising efficiency.

4. Creating effortless online giving experiences
With more people accustomed to seamless online transactions, donors expect the same ease when contributing to charities. Nonprofits are therefore focusing on creating frictionless donation experiences — from simplified donation pages to one-click giving options. Mobile giving and text-to-donate options are also on the rise, helping nonprofits capture donations in real time.

In addition to technical improvements like the above, nonprofits are using storytelling, impact visuals, and clear calls-to-action to motivate donors. The goal is to create an online giving experience that is both efficient and emotionally rewarding.

Tip: Ensure that your website is mobile-optimised and that donation forms are simple and user-friendly. Consider adopting one-click giving solutions to make donating as easy as possible for supporters—and thank donors at each touchpoint.

5. Engaging fundraising automation in nonprofits
In 2023, 37 per cent of nonprofits reported that limited staff capacity hampered their ability to operate at full potential. As nonprofits face limited staffing, automation is becoming essential to handle repetitive tasks, such as sending thank-you emails, tracking donations, and scheduling social media posts. 

Automation helps free up time for staff to focus on high-impact activities, like relationship-building with major donors or planning campaigns.

Tip: Identify tasks in your organisation’s workflow that are repetitive but necessary. Use automated tools for email marketing, social media, and data tracking to enhance productivity without adding headcount.

6. Projected increase in total giving by 3.9 per cent
Good news for nonprofits: despite recent challenges, experts predict a 3.9 per cent increase in total giving in 2025, fueled by rising incomes and renewed consumer optimism. As the economy stabilises, individuals and businesses are expected to resume or increase their charitable contributions. Nonprofits should prepare now by ensuring they have robust outreach strategies in place to attract new donors and engage lapsed ones.

Tip: Position your nonprofit to be top of mind as donors return to giving by consistently sharing impactful stories and clear financial updates that showcase your mission’s effectiveness and how you’re using donors’ contributions.

7. Increases in grants and giving by foundations
With the anticipated economic rebound, grant funding is expected to see an uptick by 5.3% in 2025, though competition will remain fierce. Nonprofits that can clearly demonstrate measurable impact and outcomes are likely to have an advantage. Building relationships with grant makers and ensuring you have well-prepared, impactful proposals will be crucial to securing funds in 2025.

“Many economists now agree that the U.S. appears to be on track for a ‘soft landing,’ in other words, achieving a decline in the inflation rates of the last few years without tipping the economy into a recession,” according to Ben Casselman, economics reporter for the The New York Times.

Tip: Stay proactive by researching new grant opportunities regularly and creating templates for compelling proposals. Consider highlighting your organisation’s adaptability and transparency, as funders increasingly value these traits.

Fueling your mission for lasting impact in 2025

In the past few years, several variables have affected giving—the pandemic, stock market fluctuations, and surging inflation. This has left many nonprofits feeling uncertain about the future of their missions, their businesses, and their beneficiaries. 

But as the economic landscape begins to stabilise, 2025 offers new avenues for those ready to adapt and grow. By embracing these emerging trends, nonprofits can build stronger donor relationships, streamline operations, and amplify their fundraising efforts. Staying informed and agile will be essential for nonprofits to keep their missions impactful and sustainable in the years ahead.

This was posted in Bdaily's Members' News section by Finfare .