What’s Old is What’s New Again? Our Thoughts on 2025 Trend Predictions
Like you, we are heartened by the success of GivingTuesday 2024. Increases across the board – 16% in total dollars donated, 7% in the number of total participants, 4% in financial contributions and 32% in in-kind giving – tell us that philanthropic spirit is alive and well in the U.S. The news is especially encouraging, given the dimmer view that came out of the Giving USA report on 2023 giving, which showed a 2.1% decline when the figures were adjusted for inflation.
What does it all mean for 2025? Where should we be directing our resources to build on the good news of GivingTuesday? When we scoped out a number of the industry’s trend spotters, we noticed a few defining themes. Surprisingly (unsurprisingly?), their predictions have us thinking more about time-honored principles than about the next shiny new approach. Here is what we think stands out:
Technology will continue to evolve. Generative AI is the new kid on the block, and it is showing great potential as a tool for improving efficiency in areas such as identifying new donors, analyzing giving behavior, and improving the donor experience. A recent survey of nonprofit professionals showed that our fellow professionals are using AI to streamline time-consuming tasks like note-taking, drafting policies and job descriptions, and creating social media posts and presentations. These rapid changes can feel overwhelming, however. My recent blog, “Is Your Technology Working for You?”, provides important perspective on how to harness the power of new developments in the technology world.
Donor relationships rule. From our perspective, this is nothing new. We have always advised leaning into donor engagement and stewardship as a long-term relationship-building process. The opportunities are huge and right in front of us. GivingTuesday’s results included a 4% increase in volunteers and a 17% increase in participants who eagerly spread the word about charitable giving. People want to be part of the solution! Make it easy for them to jump in and help. And don’t forget that the great baby boomer wealth transfer is in progress – do what you can to include asset-based fundraising strategies in your plans.
Nonprofit staffing will remain a challenge. In 2023, the National Council of Nonprofits reported that more than 74% of nonprofits surveyed were experiencing job vacancies. Nearly three out of four reported salary competition as thwarting their hiring efforts; 66% pointed to budget constraints. We were happy to see Hubspot recommend engaging “consultants on an as-needed basis” (i.e., fractional staffers!) to fill gaps.
We also asked our team of seasoned fractional nonprofit professionals to weigh in on what they see on the horizon for 2025. Here is what they added to our list:
Fundraising instability will remain a challenge. Professionals and organizations alike will continue to navigate gaps in budgeting to support traditional fundraising staff structures. A flexible mindset, coupled with an honest look at strategic priorities against resource capacity and organizational culture, will help move organizations toward more effectively filling short-term and long-term staffing needs. Alternate human resource models like contract or fractional support will further emerge as an important tool in creating a firm foundation for fundraising programs.
Gifts of highly appreciated stocks will continue to grow. Our experts recommend publishing a “Ways to Give” document that can be shared with all major and leadership donors. Be sure to include information on giving via donor advised funds, IRAs, wires and other securities such as crypto currency. Donors are tapping into all of their options for making charitable donations.
A renewed focus on operations has emerged. While nonprofits realize that revenue generation is critical to the long-term health of their organizations, efficient and effective operations seem to be getting more attention. Buttoning up financial and HR processes and ensuring compliance on all levels are critical operational priorities. All functions, including fundraising and program delivery, benefit from a smooth-running ship.
Some things never change – and that’s good, too! Remember, always thank your supporters for making the work of your organization possible. Stewardship is the highest form of cultivation and personal connectivity is what will help distinguish your organization from all the others in 2025.
We are optimistic about the current climate for building and growing a sustaining foundation of support. And we are excited about the tools – like fractional staffing and generative AI – that are available to help you maximize your resources. Taken together, we foresee lots of nonprofit success in 2025!
The More Than Giving Co. can help you help you maximize your resources for 2025.
Schedule a call today to learn how we can help.