How to Raise Money in an Uncertain Economy
Headlines and jittery markets can make even seasoned fundraisers feel like they’re sailing the ship a little bit blind. The real challenge is learning to pivot correctly with the natural ebbs and flows of uncertain markets. Here are some strategies that follow will equip you to do exactly that even if the economy keeps us guessing for another year.
Uncertainty Isn’t New, But Here’s Why “Uncertainty” Feels Different in 2025
Interest-rate limbo. The Federal Reserve has held its target range at 4.25 % – 4.50 % for five consecutive meetings, signaling caution while inflation remains sticky and growth slows.
Generosity is still inching upward. U.S. donors gave an estimated $592.5 billion in 2024, a 3.3 % real-dollar increase and a new all-time high.
But loyalty and total number of donors keep drifting down. Overall donor retention fell to 42.9 %, down another 2.6 % year-over-year.
Diversified nonprofits are proving sturdier. Data aggregated by Nonprofit Quarterly shows that organizations with multiple revenue streams weather downturns far better than single-stream organizations.
Americans are still writing checks. What is happening though is that they are choosier than they were even a year ago, and unfortunately are churning faster.
Principles That Will Never Go Out of Style
Mission clarity always. In a shaky economy, lots of donors tend to triage. Be the easiest “yes” in their philanthropic portfolio.
Impact transparency builds trust. Combine hard numbers with human stories so supporters see exactly where their dollars land.
Stewardship is revenue insurance. Even a 10 % bump in retention can more than double long-term income. Acquiring new donors costs far more than keeping the ones you have.
Eight Tactics for 2025-26
Diversify revenue streams. Organizations with three or more funding channels bounce back faster from financial shocks. First step: map your current mix and set a 12-month goal to add one new stream like corporate partnerships or planned gifts.
Accelerate monthly giving. Recurring donors provided a 144 % revenue lift from 2018-22 and remained the most reliable givers during COVID and beyond.
Court mid-level donors. With the standard deduction still high, gifts under $2000 are the fastest-growing slice of individual giving. Treat these mid level donors like major gifts prospects because some of them actually might be.
Use matching challenges if appropriate. Mentioning a match boosts appeal response rates 71 % and average gift sizes 51 %. Ask a board member or loyal donor to seed a challenge for the fall or even Giving Tuesday.
Promote asset-based gifts. A strong stock market means many supporters hold appreciated securities. Highlight stock, Qualified Charitable Distribution (QCD), or even cryptocurrency options in every appeal.
Invest in donor-centric tech. Clean CRM data and automated stewardship journeys counteract shrinking acquisition pools. Schedule a data-hygiene sprint this quarter.
Collaborate, don’t compete. Cost-sharing coalitions can reduce overhead especially for advocacy or research missions.
Scenario-plan your cash. Model “base, bear, and bull” income scenarios and agree in advance on expense triggers so surprises don’t halt mission-critical work.
Build a Culture of Resilience
Board leadership. Board members should lead (by example) in giving, stewardship, and advocacy of your mission.
Staff transparency. Share high-level dashboards internally so everyone understands the stakes and celebrates wins.
Don’t automatically shake your head at new innovation. Keep an open mind to trying AI tools or new platforms, especially ones that are low or no-cost.
Last year Americans just delivered the largest charitable total ever recorded, even with interest rates at multi-decade highs and donor retention sliding on a national scale. Start small and pick one action from the playbook , and watch momentum build. Even (and in fact especially) when the markets won’t cooperate.
Need help raising more money for your nonprofit organization? No matter the size of your nonprofit, an uncertain economy affects everyone. Send us a message and we would love to learn more about the goals of your nonprofit!
