5 Trends That Will Shape Fundraising In 2025

As we begin 2025, fundraisers face several key challenges and trends shaping their work.

Tax Law Changes
With the expiration of the Tax Cuts and Jobs Act (TCJA), new tax legislation is expected. The TCJA, by raising the standard deduction, led to fewer itemizers and decreased charitable giving by an estimated $16 billion annually. A push for a charitable deduction for non-itemizers is underway, which could encourage more giving. Fundraisers must stay alert to these changes and be ready to inform donors on how to maximize their contributions.

Artificial Intelligence Integration
AI is becoming more prevalent in fundraising, from automating appeals to engaging donors. However, donor trust is a concern—70% of high-income donors say they’d be less likely to give to a charity using AI. Fundraisers will need to balance adopting new technology with maintaining donor trust.

Declining Donor Numbers
The number of donors has been shrinking for years, with 2023 showing a decline in individual contributions. To counter this, nonprofits are focusing on reconnecting with smaller, everyday donors. GivingTuesday showed a slight uptick in donations, but it remains to be seen whether this is a trend that can be sustained.

Donor-Advised Funds (DAFs)
DAFs continue to grow in popularity, accounting for a significant portion of giving. However, fundraisers struggle to identify DAF holders and build relationships, as many donations are anonymous. With DAF assets projected to exceed $2 trillion by 2026, finding ways to engage these donors is crucial.

Nonprofit Financial Strain
Nonprofits are still grappling with financial challenges, exacerbated by economic uncertainty. Despite some bright spots like strong GivingTuesday donations, many organizations face financial distress, staffing cuts, and program reductions. Nonprofits will need to remain resilient and innovative in their fundraising efforts to navigate these hurdles.

In 2025, fundraisers must adapt to these evolving trends while ensuring they engage donors effectively and maintain financial sustainability.