2025 Nonprofit Fundraising Trends: Insights to Elevate Your Strategy

In 2025, nonprofit fundraising continues to evolve, driven by both challenges and innovative strategies that promise to reshape the way organizations operate and engage with donors. Drawing on the latest data and studies, here are the top 10 trends and strategic recommendations that can help nonprofits navigate the evolving landscape of philanthropy.

1. Rising Charitable Donations Amid Fewer Donors

Donations are up, but the donor pool is shrinking. According to the Fundraising Effectiveness Project, donations rose by 3.7%  through June 2024 — the largest second-quarter increase in four years. Despite challenging economic conditions, total giving surpassed $500 million for the third consecutive year in 2023, as reported by The Giving Institute. This resilience in giving underscores the importance of diversified funding sources from individuals, foundations, bequests, and corporations. 

Projections by the Lilly Family School of Philanthropy anticipate a rise in giving, up to 4.2% annually, and Giving Tuesday alone contributed to a record-breaking $3.6 billion in donations. These positive reports reflect the resilience of collective philanthropy, yet the number of donors continues to decline. They dropped 5.3% year-over-year through Q3 2024. This signals a pressing need for nonprofits to:

• Diversify funding sources.

• Focus on engaging and retaining existing donors.

• Develop strategies to attract new supporters.

We won’t know what the final numbers for the fourth quarter are for a few months, but there’s a solid case for optimism in fundraising as we enter 2025.

2.  Donor Acquisition Challenges and the Need for Engagement Plans

A staggering 47% of nonprofit leaders identified donor acquisition as their top challenge, as per NonProfit PRO’s survey. This marks a 10-percentage-point increase from the previous year, signaling growing difficulties in attracting new donors. However, a more concerning statistic is that 56% of nonprofits reporting having no formal donor engagement strategy.

This gap offers a clear opportunity:

• Build a Donor Engagement Plan: Use personalized outreach, digital communications, and compelling storytelling to create meaningful connections. As donor acquisition becomes more challenging, keeping donors connected and engaged is increasingly important.

• Leverage Technology: Tools like Julep can help automate and personalize your engagement efforts, making it easier to connect with donors.

Nonprofits must prioritize creating and implementing comprehensive donor engagement strategies to reverse the trend of declining donor numbers.

3. The Rise of Digital and Sustainer Donors

The digital shift is undeniable, with digital-first donors proving 48% more valuable than their offline counterparts according to NextAfter. Organizations that harness the power of digital platforms are not only expanding their donor base but also enhancing the value of each contribution, which significantly impacts their overall fundraising efforts.

Additionally, the emphasis on recurring donations continues to grow, with monthly gifts comprising 31% of online fundraising.

Actionable Tip: Focus on converting first-time donors into sustainers. Use digital tools to highlight the long-term impact of recurring gifts and make the donation process seamless.

4. The Power of Data-Driven Decisions

Gone are the days of intuition-based strategies. More nonprofits are embracing data to guide their strategies. Leveraging analytics to track donor retention, campaign performance, and program outcomes is becoming a norm. This shift not only refines fundraising tactics but also builds trust and transparency with stakeholders.

Get Started: Use donor management tools like Julep to gain insights and refine your fundraising efforts.

5. AI and Technology Revolutionizing Nonprofits

Artificial intelligence is reshaping the nonprofit sector. It’s hard to open a nonprofit publication with an article about how artificial intelligence is revolutionizing the nonprofit sector by democratizing data access and enhancing operational efficiency. From analyzing donor trends to automating personalized communication, AI empowers nonprofits to scale their efforts efficiently.

Pro Tip: Adopt AI tools responsibly by ensuring data privacy and focusing on tasks like donor segmentation, campaign personalization, and predictive analytics.

6. Shifts in Year-End Giving Patterns

Year-end giving is no longer the primary focus of fundraising efforts. According to M+R year-end donations now account for only 5% of annual donations. Nonprofits must shift to year-round engagement strategies and focus on recurring donors by consistently communicating with them.

7. The Economic Impact of Volunteers

Volunteer work has been valued at $33.49 per hour, a notable increase from the previous year, highlighting the substantial contribution of volunteers to nonprofit operations and cost savings.

Corporate volunteerism has seen a 57% global increase, partly due to efforts to enhance employee connection in the post-pandemic hybrid work environment. This trend offers nonprofits new avenues for engagement and support.

Opportunity: Partner with corporations to create impactful volunteer programs that align with your mission and resonate with their employees.

8. Success in Nonprofit Collaborations & Shifts in Nonprofit Management

Collaborative efforts among nonprofits have led to measurable successes in service expansion and funding increases. With 73% of such collaborations deemed successful, this strategy remains a viable pathway for resource sharing and impact amplification.

As the sector continues to evolve, there’s a greater focus on sustainability and community-centric approaches. Encouraging recurring gifts and fostering a sense of community through events and peer-to-peer fundraising are becoming crucial for long-term success.

A greater focus on community collaboration with grassroots fundraising helps nonprofits remain nimble and relevant to their donors.

9. Understanding Donor-Advised Funds (DAFs)

While contributions to  DAFs have decreased, the funds remain a significant component of philanthropic giving, with steady grant outputs. Last year, donations to DAFs dropped by 21.7% to $59.43 billion. However, these funds remain popular and a consistent funding source for nonprofits. A total of $251.52 billion exists across all DAFs, and the average payout remains at 24%.

10. Strategic Recommendations

To thrive in 2025 and beyond, nonprofits should:

• Enhance Digital Engagement: Capitalize on the higher value of digital donors by expanding online engagement strategies.

• Develop Comprehensive Donor Engagement Plans: Address the gap in donor engagement strategies to improve both acquisition and retention.

• Leverage Data for Strategic Decisions: Utilize data to drive decisions, improving effectiveness in fundraising and donor relations.

• Focus on Year-Round Engagement: Shift focus from year-end giving to maintaining consistent donor engagement throughout the year.

• Foster Collaborations: Continue to explore and expand collaborative efforts for greater impact and resource sharing.

Thrive in 2025 with Innovation and Strategy

As we navigate these evolving trends, it's evident that data-driven decisions, digital transformation, and strategic collaborations will be key to nonprofit success in 2025. By embracing innovation and focusing on donor engagement and retention, nonprofits can not only survive but thrive in this dynamic landscape. Let's harness these insights to make a profound impact and drive our missions forward in the coming year.

Ready to elevate your fundraising efforts? Schedule a demo with Julep CRM to discover how we can help you navigate the future of philanthropy.