Fundraising Trends 2025: What’s Working (and What’s Not)
The essence of fundraising has always been more or less the same, but the subcomponents of what actually goes into continue to shift year after year. So far in 2025, inflation has cooled slightly, the economy remains uncertain yet relatively steady, but donor expectations have leapt forward. Drawing from Giving USA, the Fundraising Effectiveness Project, Blackbaud Institute benchmarks, and conversations with dozens of our current clients and other development leaders, here’s a clear-eyed look at tactics gaining traction as well as those losing steam so far in 2025.
What’s Working in 2025
1. Recurring Giving and Pledges as the Default Setting
Monthly programs and pledged commitments have matured from side option to a primary revenue pillar. Organizations that place “Give Monthly” first on every gift array enjoy 2× higher donor lifetime value and smoother cash flow. Success hinges on friction‑free checkout (digital wallets, ACH) and tiered, impact‑anchored messaging. Pledges achieve the same affect for gifts that are often larger, providing the donors with more flexibility with how they give over a longer period while allowing them to stretch their giving as well.
2. Personalized and Human Donor Journeys with the Help of “Light” AI
It’s safe to say at this point that Artificial Intelligence isn’t going anywhere. Just like with computers becoming much more commonplace 20 years ago, those who learn how to use the technology effectively will be able to do more in less time than those who don’t. AI can assist with much of the task-based work required from nonprofit development. The organizations who are benefiting the most from it though know when to use AI, and maybe more importantly, when not to. Making the human connections between your donor and your nonprofit while using AI on more of the admin-type of work seems to be the proper balance of the distribution. It’s hard to deny AI is a revolutionary invention, but it will not replace the human connection in fundraising any time soon.
3. Community‑Centric Fundraising
More nonprofits are moving from transactional conversations to creating a tribe. When we say “tribe”, we’ve seen the nonprofits who are the most successful with this cultivate a sense of belonging where donors, volunteers, and staff rally around shared values to build a sort of community. The more that you can make giving feel like joining a group, the easier it is to get people to stick around and stay engaged with the work of your mission. The payoff is higher retention and peer‑recruited gifts that cost a fraction of paid acquisition.
4. Values‑Based Legacy Planning for Younger Donors
Someone doesn’t necessarily have to be over 65 to have the planned giving conversation! Millennials (now 29–44) are drafting wills online and naming missions that mirror their identity earlier than some previous generations. This is the age where many people will get connected with the missions that they will support throughout their life—even they can’t give as much right now. Framing bequests around impact in the present and future secures legacy intentions a decade or more earlier than traditional planned‑giving timelines and conversation.
5. Frictionless Payment Tech
Apple Pay, Google Pay, Venmo, and PayPal One‑Touch now power nearly 30 % of online donations on top platforms. Removing card‑entry friction lifts mobile conversion without denting average gift size. Make sure you have an optimized landing page to increase your online donation conversation rates
6. Donor Retention as the Strategic North Star
With acquisition costs rising from already high levels and small‑dollar gifts flattening which normally happens during times of economic uncertainty, organizations that redirect resources to stewardship are outperforming peers that chase constant new donor churn. Remember, it costs 7x-10x as much to acquire a new donor as it does to retain an existing one. So the highest performing programs are doing both.
What’s Not Working in 2025
1. Generic Appeals of Any Kind
Whether email, direct mail, or social ads, one‑size language now falls flat as people are giving to less charities. Personalization is the baseline donors expect and how to stand out with the current state of how saturated the donor market is.
2. Dependence on One‑Time, Small‑Dollar Gifts
Acquisition costs outpace returns when the average gift sits under $50 for a nonprofit organization. Sustainable growth requires upgrading existing supporters by keeping them engaged and informed. The math on replacing them every year with new people simply just doesn’t work.
3. Heavy Reliance on Grants and Foundation Funding
Foundation portfolios remain unpredictable since Q1 of this year, making grant cycles unpredictable. Many nonprofits already realize this and are looking at other avenues for new funding sources and revenue engines. This is wise, being that most money given away every year comes from individuals. Nonprofits leaning on a few large grants face budget whiplash when timelines slip or priorities shift. Just like a well-diversified financial portfolio is less affected by the ups and downs of the market, the same goes for philanthropic revenue.
4. Overreliance on Fundraising Events
In‑person galas and 5Ks are, unfortunately, back. Since the pandemic though, costs have climbed and donor fatigue sets in faster than it did before. Events and gatherings remain useful for cultivation and recognition, yet revenue‑led strategies that hinge on multiple large events risk thin margins and staff burnout. Not to mention the opportunity cost of time spent on fundraising events as a revenue driver.
Need more personalized insights on how your nonprofit could raise more money? We’ve help nonprofits raise more than $100M a year all over the country. Send us a message and we would be happy to chat with you to learn how we might be able to help your organization.
