In order to grow, you must embrace change. I’m personally a big believer in this sentiment and it’s a fitting statement as we to reflect on how things are changing in the nonprofit world. Key donor demographic shifts, new technology, and a shift in the way donors choose and support missions provide both opportunity – and challenge – for nonprofit leaders in 2025.
Here are five key trends the consulting team at JGA sees in our national volunteer work and in talks daily with our clients.
1. National trends are greatly influencing giving landscape
Trust in institutions are at an all-time low with the American public, and nonprofits are no exception. While an unprecedented wealth transfer from the remaining Boomers and senior Gen X generation provides an incredible opportunity for philanthropy, income disparity is increasing and the needs that nonprofits address have never been greater.
This means that your fundraising program must both resonate with the passions of individual donors and show a clear impact to the missions they want to help. It is a truism that all giving is individual – even a corporate or foundation gift to your organization must be championed by someone who sees the purpose. How can you make sure to differentiate what you do from other organizations? Or how can you make what you do clear and impactful with stories and examples?
We believe that listening to your donors, through campaign feasibility studies and data plus experience with your most engaged donors, are crucial in today’s giving environment. You cannot just show up, even as an established organization, and expect donors to give. You are going to have to ask smarter, and in a way that builds both trust and a sense of purpose for today’s donors. Because there are many other organizations asking at the same time.
2. Giving is more strategic, collaborative, and decentralized
Those passionate individual donors, who still drive the bulk of giving, are engaging with philanthropy differently. Donor-Advised Funds, family foundations and other strategic giving options are growing rapidly. In addition, collaborative giving opportunities, like giving circles and charitable crowdfunding are on the rise.
The relationship between the donor and the fundraiser is shifting. More donors have a plan, and your time is going to be better spent working with them collaboratively, listening to their motivations aligning missions and desires.
In 2025, we predict that you will be having conversations more often with big donors about the strategy behind giving: bequests will join individual giving and partnerships with the family foundation to create incredible philanthropic plans to help meet your mission. You should be ready to have these multi-layered conversations.
3. Our donor base is changing, and fundraising needs to change with it
Women will continue to drive giving in the future. Few organizations have made the shift to engage more collaborative and network-driven female philanthropists. Not to mention, the opportunity to impact women’s causes is incredible in the coming years. Luckily, work in the nonprofit sector is primed to take advantage of this, because partnerships between governments, corporations, and grassroots organizations are becoming more prevalent to tackle global challenges like climate change and education access.
Highly social Millennial and Gen Z donors are having more and more impact every day. Younger generations prefer digital and mobile giving methods, storytelling-driven campaigns, and nonprofits aligned with their values. As they grow into larger giving roles, nonprofits need to adapt their strategies to appeal to these donors, fostering lifelong connection and philanthropic habits.
“The way we’ve always done it,” is a ticket to donor decline, exclusion, and an uphill battle to grow a major gift pipeline. 2025 is the year to expand your strategy to focus on inclusion, social engagement, and impact.
4. AI adoption is crucial, but needs to be ethical and beneficial in fundraising
There will be more technological innovation in the next few years for nonprofits than we have seen in decades. Artificial intelligence and predictive analytics will help us better answer both who to engage and how to engage them, and fundamentally shift the way we reach out to donors. It is an exciting – and for many organizations – scary time.
In the coming year, we will be presented with numerous opportunities to utilize this technology. At JGA, we believe that this technology must be ethical, inclusive, and beneficial, because your work and the generosity sector is too important to not adhere to these values.
Artificial intelligence will not replace fundraisers. However, the fundraising teams that can adopt AI in a way they can truly use to elevate genuine, authentic human relationships will flourish in this new environment. If you are thinking through your path with these new tools, I strongly encourage you to engage us for help.
5. Transparency, authenticity and impact come before loyalty with today’s donors
Donors are increasingly demanding accountability and measurable results. This has driven nonprofits to adopt data analytics and impact evaluation frameworks. Storytelling, combined with real-time data, is becoming essential to communicate the tangible effects of donations, especially for younger donors.
We have always believed that authenticity is the primary currency of connection with donors here at JGA. Now more than ever, you should be engaging donors early in your planning, listening to their feedback, and being honest about what you can and hope to do. This is one reason that we believe direct, conversational connection with stakeholders and potential lead donors is crucial early in a fundraising campaign.
In 2025, you’ll need to fundraise smarter, and think differently about how you engage donors
As I’ve mentioned above, we are at a crucial point for nonprofits as the combination of the great wealth transfer and exciting new technology provide opportunities to further our missions. In the coming years, campaigns will set records, donors will embrace causes deeply, and fundraisers will change the way we have done things for decades.
That opportunity is not without stress, however. Some institutions, like smaller colleges, will face serious challenges. Smaller nonprofits face huge competition for charitable dollars, especially if they are engaging a limited donor base. Big institutions and missions run the risk of going stale with an increasingly younger donor base. And while data and AI provide tremendous opportunity to help you reach the best donors, using these tools in the right way is crucial.
We are watching these trends, continuing our commitment to the national conversation around giving, and talking daily with our clients and partners. If you would like to talk further about how one or more of these trends will impact your organization, please just email me. In our 31st year, we are growing and charging ahead, ready to provide direct, authentic, and mission-driven advice to help you meet your goals. That will never change.