Forecasted Fundraising Trends for 2025

Nonprofit staff have grit. With an ever-increasing demand for programming and services alongside a decreasing donor numbers, staff and organizations are being squeezed now more than ever.  

However, giving has been or is expected to grow in some areas. There are pockets of opportunity to better engage donors, invest in technology, and better strategize fundraising efforts.  

Let’s look ahead as your organization plans, strategizes, and adapts in 2025. What can you and your team expect in the fundraising event, donor relationship, and nonprofit marketing landscapes? 

---

This on-demand webinar reviews what 2024 was like for nonprofits and offers fundraising, donor, and marketing strategies for 2025. It’s a must-watch for nonprofits aiming to stay ahead and future-proof their fundraising efforts. 

---

Shifting Donor Preferences  

Donor expectations are changing; Communication needs to be tailored. AI is undoubtedly at the forefront of everyone’s minds, and donors want to understand their impact. 

How your organization personalizes outreach goes a long way to helping donors understand impact.

 

Personalization and Stewardship 

A perpetual news cycle, coupled with a bombardment of communication, makes breaking through the noise a real challenge. If you blanket all communication to your entire donor pool, your organization will not yield much success, especially in the long term.  

You must segment your donors to better personalize. It doesn’t have to be overly complicated or have dozens of layers, but tailoring your marketing to groups, such as by donation level and/or frequency, interests, and demographics, will support your donor retention and stewardship efforts best. Segmentation helps your donors feel valued by your organization.  

Once you create your segmentation plan, you can personalize your communications based on each segment. Sending targeted e-mails and newsletters to people by name and creating a thoughtful phone call cadence and mailing pattern can help steward relationships with people who will become long-term supporters and major donors. Even something as simple as signing typed letters or cards with your branded color by hand makes a difference.   

Storytelling  

Storytelling is paramount to achieving success with your fundraising and donor management strategies; it drums up emotions, creates deeper understanding, and bridges genuine connections with your support network to your mission. Stories stay with us.  

Compelling storytelling makes your cause and constituents feel relatable, authentic, and urgently in need. It ties donations to outcomes. The right narrative can transform your campaigns, events, and marketing materials. Even with limited resources and time, you can improve how you share your mission and successes to inspire donor engagement and giving.  

Improving your nonprofit’s storytelling can help your organization retain donors and grow funding, grants, and corporate interest in 2025.  

AI Supported Fundraising   

AI and AI-supported tools offer technology that can have real benefits for nonprofits, but they also carry a lot of ethical considerations. 

Many free AI-based tools for nonprofits can help save you time. Some AI tools are new to the market, and you should research which can offer a return for your investment of time and energy. In other cases, tools nonprofits are already using, such as Canva and Sign-Up Genius, are integrating AI into their technology.  

However, it’s important to remember: AI is not a replacement for a qualified fundraiser. These copywriting, editing, volunteer management, and other AI-based tools can support your work, but it is wise to keep guardrails in place. Never feed AI donor’s personal information, don’t take AI output as fact, and recognize that bias in AI output exists. 

 

Appealing to Younger Generations  

Younger generations are expected to continue growing in influence and impact. To best engage with these ever-increasing donor populations, nonprofits have to understand and cater to their priorities and interests.   

Younger Millennials and Gen Z grew up in a digital era. They take in information rapidly, so hyper-personalization and short-form content should be a part of your marketing. Nonprofits need to ensure the security of these donors’ data. They are aware of the risks of compromised privacy. They are early adopters of AI and other technology, so digital-first strategies will help your nonprofit target these younger donors. 

These generations demand an understanding of how their giving influences outcomes, so strategic storytelling should be a priority for nonprofits to perfect this year.  

Demands for More Engaging Events 

Organizations are expected to host more events in 2025, and high-energy events will likely take center stage.  

Nonprofits can reinvigorate their legacy galas, golf outings, and other events by incorporating a new aspect to the event – there are SO many creative possibilities:  

• Adding in fundraising games that help raise additional funds, entertain supporters, and keep guests engaged – and coming back year after year  
• Create a competition-style fundraising component, where peer-to-peer fundraising goes on hyper-drive and people compete for a superlative award 
• Offer awards to top researchers or corporate partners to acknowledge their contributions and encourage more attendance from their family and friends   
• And more! 

Nonprofits should explore pop-up-style events or smaller, surprise fundraisers to boost engagement. These short-term, high-energy events can be highly targeted and create a sense of urgency among donors.  

This year, we can also expect a more substantial investment in volunteer programs, community engagement, and peer-to-peer fundraising, as nonprofits aim to build networks. This not only increases reach but also fosters a sense of ownership and community, which, in turn, rockets engagement.  

Doubling Down on Donor Retention 

Ruthlessly prioritizing donor retention should be a priority for nonprofits in 2025. To be most effective, you must diversify your asks and appeals while folding in storytelling. Giving people multiple reasons and multiple ways to give increases donor engagement.  

Your nonprofit also needs to improve the donor experience from end to end. Secure, easy online giving, quickly acknowledged gifts, and authentic gratitude all work together to keep donors giving again. Additionally, reporting impact and implementing best practices for long-term stewardship will increase donor loyalty.   

It is expensive to get a new donor. Keeping those who have already given and stewarding them to give more and support in other ways will support long-term sustainability at your nonprofit this year and more to come.  

The Era of Reactive Giving  

Reactive giving, driven by emotional responses to natural disasters, crises, or current events, is will likely continue to rise. This unplanned surge of donors can catch nonprofits off guard. These moments can also result in a windfall for a nonprofit.  

Your organization should prepare for reactive giving. Your mission and constituents don’t exist in a vacuum. While these donors may give small, one-time gifts, being consistent with messaging and sharing regular mission updates can give reactive donors a reason to give again. 

You can also encourage reactive donors to get involved in other ways. Offering opportunities for donors to volunteer with or advocate for your organization can foster stronger loyalty and deeper engagement. 

Nonprofits can transform reactive giving moments into opportunities for building lasting donor relationships and sustainable funding. 

This year, nonprofit organizations must embrace change and innovation to thrive. Donors expect meaningful engagement, transparency, and personalized experiences. By leveraging technology, nonprofits can streamline operations, deepen connections with supporters, and maximize their impact. 

Focusing on donor retention and stewardship is equally important. Through consistent communication, recognition, and demonstrating the tangible outcomes of their contributions, nonprofits can inspire long-term loyalty and advocacy. 

Ultimately, success in 2025 hinges on the ability to balance existing best practices with innovation, creating strategies that adapt to modern expectations. This year, nonprofits can not only overcome challenges but also seize opportunities to make a lasting difference in the communities they serve.