We started creating a nonprofit outlook a few years ago when we saw how the pandemic was affecting the nonprofit sector, noticed shifts in nonprofit operations and observed changes in donor behavior due to technology. We wanted to combine our research, observations and client trends into a simple document to share.
This is our third year, and our 2025 outlook has a little extra. We reviewed our 2024 predictions to see how we did and included our “hits and misses.” We thought it was important to acknowledge what we got right, and own up to areas where we missed the mark so we can all prepare for a successful 2025!
2024 prediction: Donors will be cautious due to the economy.
We anticipated donors, especially smaller ones, would remain cautious due to economic uncertainties and inflation. This caution was confirmed as many individuals prioritized essential expenses such as food and rent over discretionary spending. Even with inflation showing signs of cooling, smaller donors made fewer, smaller or no gifts, even with interest rates remaining relatively high throughout 2024.
2024 prediction: Corporate giving will be driven by employee engagement.
Corporate giving saw an uptick, largely driven by employee engagement initiatives. Workplace giving programs and corporate volunteerism became more prevalent, strengthening ties between corporations and nonprofits.
2024 prediction: There will be competition with political campaigns.
As we expected, the 2024 election year intensified competition for philanthropic dollars. Political campaigns and action committees actively sought contributions, challenging nonprofits to differentiate their appeals to donors.
2024 prediction: The markets are set to grow.
Disclosure: We have no expertise in this area, but we did look to those who did when we made this prediction. The markets surged.
2024 prediction: Foundation giving would be mixed.
We anticipated variability in foundation giving due to market volatility in prior years. However, many foundations maintained or even increased their contributions by adjusting their spending policies to support nonprofits during uncertain times.
Digital-first giving will dominate.
Digital isn’t going away and people will continue to expect seamless, personalized digital interactions. Nonprofits must prioritize their digital giving infrastructure. Updated website content and functionality and mobile-optimized donation pages will be expected by donors. Fundraising campaigns must include paid and organic digital components and be complemented by ongoing communication efforts throughout the year. Nonprofits that stay in front of their donors and constituents through personalized digital communications will come out on top.
We will see more major gifts.
The market performance in 2024 has put many wealthy individuals in a place to make significant major gifts. Cultivating major donors will be essential, especially as smaller donors are still cautious about inflation.
Note: If your nonprofit doesn’t accept stock gifts (at the very least), now is a good time to change that. Many donors prefer giving stock because of favorable tax advantages.
Donors will continue to expect impact reporting.
As people continue to be more selective about their gifts, they are going to expect the nonprofits they support to show the impact of those gifts. They will expect simple reports that visualize data to show that impact. Attention spans are short (and getting shorter) so long written reports that require lots of reading aren’t going to work. Donors will expect increasingly sophisticated impact reporting and on-going updates. Once a year isn’t enough.
Many donors will continue to be cautious.
Donor behavior will continue to be influenced by the economy. Inflation is still higher than the Federal Reserve target rate, a new president with new policies is taking office and there is a shift in the legislative branch of government that are all on people’s minds. Be transparent with your needs, continue to demonstrate relevance in your community, build trust, communicate regularly and encourage giving throughout the year.
Employee-driven giving will continue to grow.
Corporate giving as a percentage of overall giving has grown at the highest rate over the last few years. Much of that is attributed to employee-driven efforts. Plus, many companies are starting to bring people back to the office and are looking for ways to make the transition smoother as part of their employee engagement strategies. Look for ways to holistically involve a company – volunteer opportunities, tailored engagement strategies and aligning the corporate mission with yours.
2024 prediction: Increased investment in digital paid off.
Nonprofits that invested in their digital presence, including website optimization, fundraising campaigns and content, improved their engagement with constituents. Those who used AI tools correctly to develop additional digital content and improve efficiency were able to spend more time personalizing communication and improving donor relations.
Note: AI is a starting point for content, not the end. If you aren’t taking the final AI content and changing it to match the voice of your organization, it will start to show AND sound like everyone else.
Suggested read: 2025 Online Statistics for Nonprofits
2024 prediction: Email authentication compliance improved deliverability.
Organizations that updated their email practices in line with new Google and Yahoo standards maintained effective communication channels and improved their deliverability rates. Those who didn’t likely saw reduced engagement and deliverability. You can still update your email compliance. Learn more about Google and Yahoo authentication.
Suggested read: Google confirms New Gmail Security Boost for 2.5 Billion Users
2024 prediction: Nonprofits will use much more video.
We expected a significant increase in the use of video content, but some nonprofits were slow to adopt it. This is likely due to cost (or perceived cost). However, those nonprofits that invested in both high-quality video and user-generated video content saw increased engagement with donors and other constituents.
AI use will grow beyond content creation.
AI adoption will grow exponentially as individuals get more savvy with writing AI prompts and understanding use cases for AI tools. The number of available AI tools is growing and existing tools are adding functionality that can significantly improve our productivity. These tools can be used for a variety of marketing (and non-marketing tasks) including predictive analysis for giving, grant writing assistance and personalized communications.
Note: As we mentioned before, it is important to maintain your organization’s voice when using AI tools. So, make sure you edit your copy and compare it against organic writing! Also, always check data and analyses to make sure the information you are getting from your AI tools is correct and provide the analysis you need/want.
Short-form video will dominate.
We’re making this prediction again in 2025. Even if your nonprofit doesn’t get on the video bandwagon, video will continue to favor those who create short-form videos (30 seconds or shorter) for social media. Concise and compelling videos are proven to capture audience attention and are becoming an important medium for storytelling and showing impact.
People will be more concerned with data privacy.
Privacy is becoming a bigger concern for Americans as more people learn about data breaches and how their personal information is being used online. In 2025, nonprofits need to show their constituents how they collect and use data, like email addresses and donation history. Organizations that are open about their data practices and give people clear choices about their privacy will build more trust with their communities.
2024 prediction: There will be significant transition of nonprofit leadership.
The sector experienced a wave of retirements among senior leaders, highlighting the importance of succession planning and leadership development. That transition will continue into 2025 as many long-time nonprofit executives and founders choose to retire.
2024 prediction: The time is now for strategic planning.
Many organizations undertook strategic planning to navigate post-pandemic realities and position themselves for future success. We expect this trend to continue into 2025.
2024 prediction: There will be an increase in nonprofit mergers in 2024.
While the data is not yet available, merger and acquisition projections from a variety of sources indicate this to be true. We see this trend continuing for the foreseeable future.
We did okay here for the most part! We cannot quantify if nonprofits invested in professional development and it if paid off.
Hybrid work will continue to evolve.
Organizations will need to refine their hybrid work policies, focusing on outcome-based performance measures rather than time-based metrics. The adoption of flexible work arrangements will continue, requiring investments in digital infrastructure and effective remote management practices.
Nonprofits will need to invest in technology infrastructure.
Updated, cloud-based systems and cybersecurity will become non-negotiable as digital operations expand and leave organization open to data breaches.
There will be a skills gap.
Continued transitions of long-time leaders will leave many organizations struggling to fill the shoes of seasoned and experienced professionals. New leaders will bring new energy, but many will need specialized training, mentoring and formal leadership development.
AI adoption will be essential, but slow for some organizations to adopt.
While some organizations embraced AI, others remained hesitant due to concerns about cost, complexity, and ethical considerations. As AI tools become more accessible, more people will be likely to adopt them, whether you know it or not. Establish guidelines for ethical AI implementation and use.
Nonprofits have historically faced challenges in their work. But that’s what makes the sector unique. When faced with challenges, nonprofits look for opportunities and ways to solve problems. That’s what we love about the nonprofit sector. It’s filled with people like you that are resilient, tenacious and committed to improving our communities.
Our final thoughts to you for 2025:
You can choose to focus on what you cannot control OR focus that energy on what you CAN control. Take charge of what you can in 2025 and our wishes for much success.
Like what you read? Subscribe to our weekly blog and it will be delivered directly to your inbox!