What’s Next in Fundraising: 10 Trends Shaping 2025

As the philanthropic landscape continues to evolve, nonprofits must stay informed about emerging trends to effectively engage donors and sustain their missions. Here are the top 10 fundraising trends shaping the nonprofit sector in 2025:​

Decline in Inflation-Adjusted Giving Amid Federal Funding Cuts

Adjusted for inflation, charitable giving from individuals, foundations, corporations, and especially government sources is declining. The Trump administration's significant cuts to federal programs and grants, including the suspension of nearly all U.S. foreign aid contracts and reductions in domestic funding, have created substantial funding gaps for nonprofits. These cuts have led to the dismantling of agencies like AmeriCorps and the U.S. Agency for International Development (USAID), affecting a wide range of services and prompting legal challenges from multiple states. ​

AI and Data-Driven Fundraising Take Center Stage

Artificial Intelligence (AI) and data analytics are revolutionizing fundraising strategies. Nonprofits are leveraging AI to segment donor lists, predict giving patterns, and personalize outreach, enhancing engagement and efficiency. Data-driven decision-making enables organizations to measure campaign effectiveness and tailor approaches to donor preferences, leading to improved outcomes. However, it's important to note that some high-income donors express reservations about AI-driven appeals, emphasizing the need for a balanced approach. ​

Monthly Giving Programs Gain Momentum

Subscription-based giving models are thriving in 2025, offering nonprofits a predictable revenue stream and fostering donor loyalty. Donors appreciate the convenience and budget-friendly nature of monthly contributions, leading to higher retention rates and increased lifetime value. ​

Donor-Advised Funds (DAFs) Continue to Rise

DAFs are becoming a more prominent vehicle for charitable giving, providing donors with flexibility and tax advantages. Nonprofits are focusing on building relationships with DAF holders and sponsoring organizations to access these funds, which are growing in popularity among philanthropists. ​

Generational Shifts Influence Giving Patterns

Generation Z and Millennials are redefining philanthropy with a focus on social issues, transparency, and digital engagement. These younger donors prefer to support causes that align with their values and are more likely to engage through online platforms and social media. Nonprofits are adapting by creating authentic, mission-driven content to connect with these audiences. ​

Emphasis on Donor Retention Amidst Declining Participation

While total donation amounts remain steady, the number of individual donors is declining. Nonprofits are prioritizing donor retention strategies to maintain and grow their supporter base, recognizing that retaining existing donors is more cost-effective than acquiring new ones. ​

Collaborative Giving Models Gain Traction

Collective giving approaches, such as giving circles and community foundations, are gaining popularity. These models allow donors to pool resources for greater impact and foster a sense of community and shared purpose. Nonprofits are engaging with these groups to tap into new funding streams. ​

High-Net-Worth Individuals Rely More on Philanthropic Advisors

An increasing number of ultra-wealthy donors are seeking guidance from philanthropic advisors to manage their charitable contributions. In 2024, a network of advisors facilitated $60 billion in giving, accounting for about 9% of total philanthropy. These advisors assist donors in strategic planning, legal compliance, and identifying impactful giving opportunities, highlighting the growing influence of professional counsel in high-net-worth philanthropy. ​

Regulatory Changes Impact Fundraising Strategies

Potential changes to tax laws and charitable giving incentives are influencing donor behavior and nonprofit fundraising strategies. Organizations are staying informed about legislative developments to adapt their approaches and communicate effectively with donors about the implications of these changes. ​

Digital Fundraising Channels Expand

The use of digital platforms for fundraising continues to grow, with nonprofits embracing social media, crowdfunding, and virtual events to reach wider audiences. These channels offer cost-effective ways to engage donors and tell compelling stories, especially important in an increasingly digital world. ​

Staying informed about these trends is crucial for nonprofits aiming to enhance their fundraising effectiveness in 2025. By embracing technological advancements, focusing on donor relationships, and adapting to changing donor demographics and preferences, nonprofits can position themselves for sustained success in a dynamic philanthropic landscape.