The year of 2024 was pretty good for nonprofits! Giving to your organizations was the most it has ever been in history according to Giving USA and we ended 2024 with an up market. Both of these indicate a positive year of giving for 2025!
However, there is so much change in the world and so much conflicting information that it is easy to get bogged down in how the year might be! I looked at several polls on giving for 2024 and they ranged from 50% to 88% when talking about the percentage of people who gave last year. What that says to me is that there is a great deal of possibility and that ALL people are seeing the value in giving to things they believe in and want to support. I’m sure you have observed the passion in the world in the past several months!
For 2025, you might look at these 5 things:
Millennials rank second in the amount of money donated per year. They have passed their parents in giving! The Boomers still lead the pack and some of your communication and strategies will continue to work with them. However, you might want to update some of your strategies to make them more relevant to a younger audience. Always include giving options for all people at all income levels. Millennials are participating in impact investing. Do your investment policies reflect positive priorities? That is what they are looking for!
AI changes everything! Make sure you are paying attention, but AI can generate fundraising materials for you in a fraction of the time. You can also focus on generational materials! In addition, AI can help you free up time to spend with donors. More face to face meetings is always the way to go.
Get to know your donors and form meaningful relationships with them. Charities have become increasingly transactional and they need to do way more than ask! Get to know them so that you know what projects are meaningful to them, which ways of giving are most beneficial to them and what stewardship would be most appreciated by them. Millennials want to be involved in the projects they invest in. There will be way less “unrestricted” giving moving forward.
History tells us that there will be some kind of economic recession roughly every decade in the US, however, the timing is hard to predict since they can be caused by natural disasters and obviously, a pandemic! When will it be? Fundraise for it now by focusing on endowment and other tools to help “recession proof” your organization. In addition, steward your donors so well (back to those personal relationships) that they stick with you in a down year.
Lastly, The wealth transfer that we have been talking about for years is happening. Be ready. As Boomers pass on, their families want to invest in things that leave a lasting legacy. Don’t forget to be focused on planned giving when spending time with donors, it is only growing.
The future of fundraising really comes down to the organizations that remember how to have a conversation, what to listen for in that conversation and pairing that with what could help now and in the future. Ask them how they want to be communicated with and do it. Use AI to get a jump start on communications in order to open up time in your day for one on one visits. Charities have become increasingly transactional so be the one who takes the time to get to know your donors. You should be having personal, meaningful conversations with them about the future, both yours and theirs. Ask their opinion, and listen. Ask them what they need and LISTEN. Begin to “recession proof” your organization by asking your donors to invest in endowment and “rainy day” funds, and ask their opinions on how they would ensure your organization stays in existence in good and bad times. Donors give to you because they want to be part of the solution and they trust you to keep working toward that. Make sure they know all the planned giving options, and that there are vehicles that can help them provide for their families and continue to support the causes near and dear to them. It feels like there is a lot of challenge for nonprofits right now, but I see signs of a great deal of momentum. Be positive and keep forming those meaningful relationships with your donors and their families!
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