5 Fundraising Trends for 2025

As the fundraising landscape continues to evolve, nonprofits are navigating new challenges while uncovering fresh opportunities to connect with donors and drive impact. In 2025, five key trends are shaping the future of philanthropy. Here’s what you need to know to stay ahead of the curve:

1. AI With an Eye Towards Ethics: Artificial intelligence was a hot topic in 2024 and will remain a growing focus in 2025. Tech-savvy nonprofits are leveraging AI to analyze donor behavior and preferences, enabling hyper-personalized communication, helping organizations deliver the right message to the right person at the right time. Even small nonprofits with limited budgets can get started with AI by using tools such as ChatGPT to draft thank-you letters, appeals, and other donor communications. While the benefits of AI are clear, many nonprofits are still reluctant to take full advantage of this technology due to ethical questions and concerns about losing the human connection that drives stewardship. While nonprofits vary widely in their current adoption of AI, this technology is here to stay and will become increasingly embedded in our lives. As a result, nonprofits must seek opportunities to leverage AI effectively while remaining mindful of its potential risks.
   
   Resources for AFP Members: AFP has numerous resources addressing the ethics of AI including Advancing Philanthropy articles, complimentary webinars, as well as a session at AFP ICON in Seattle this April, titled “Ready, Set, Ethical AI: Preparing Your Organization for AI in Fundraising”. There are also webinars on ChatGPT, including one coming up in February, which will introduce beginners to building ChatGPT prompts.
    
2. The Rise of Subscription Giving: Monthly giving programs are thriving in 2025, offering nonprofits a predictable revenue stream and fostering donor loyalty. Subscription giving appeals to donors looking for a simple, budget-friendly way to support causes they care about, in a model they’re familiar with from across their day-to-day lives. Platforms are now emphasizing convenience, with seamless setup processes, mobile-friendly options, and automatic updates to maintain recurring gifts.
   
   Resources for AFP Members: Dave Raley, author of “The Rise of Sustainable Giving: How the Subscription Economy Is Transforming Recurring Giving and What Nonprofits Can Do to Benefit”, will be presenting a session on this topic at AFP ICON. You can also catch Dave on January 29th, virtually, for a complimentary webinar, The Rise of Recurring Giving: Strategies for 2025 and Beyond.
    
3. Impact of Government Policies: In the United States, fundraisers are concerned about how legislation may impact the nonprofit sector in 2025. For example, H.R. 9495, the ‘Stop Terror-Financing and Tax Penalties on American Hostages Act’, when it was introduced in 2024, included a provision authorizing the Treasury to revoke the tax-exempt status of nonprofits accused of supporting terrorism. While the bill did not pass last year, in-part due to widespread opposition from a coalition of nonprofits, which included AFP, there is still the possibility that it could be reintroduced in 2025, which has nonprofits worried about how broadly it could be applied if passed and the implications this would have for the sector. Meanwhile, the Tax Cuts and Jobs Act of 2017 (TCJA) is set to expire in 2025, which means lawmakers will also be debating tax policy this year. Nonprofit leaders are hopeful that alongside the possible extension of TCJA, Congress will consider also reinstating and expanding upon legislation from 2020 which offered a charitable deduction for all taxpayers, including those who did not itemize their taxes.
   
   Resources for AFP Members: Fundraisers can learn more about the Charitable Act on the AFP website and use our submission form to contact their representatives to share how tax deductions for non-itemizers could incentivize giving from small individual donors. You can also donate to AFP’s PAC to support AFP’s advocacy efforts more broadly.
    
4. Donor-Advised Funds (DAFs) Continue to Grow: Donor-advised funds remain a popular giving vehicle, with more donors using them to streamline their philanthropic efforts. As DAFs become more accessible to individuals at various income levels, nonprofits must adapt their strategies to effectively engage DAF donors, emphasizing the impact and outcomes of potential contributions.
   
   Resources for AFP Members: If you’re just getting started with DAFs, check out this micro-learning video that clears up some misconceptions and provides a few easy to implement steps to start accepting DAF donations. You can also learn about DAFs through sessions at AFP ICON.
    
5. Combating Declines in Donor Retention: AFP’s Fundraising Effectiveness Project continues to report declines in donor retention, particularly among new donors and those giving small amounts, less than $100. For some fundraisers, the fact that major donors have been keeping total donated dollar amounts steady lately, despite these declines, indicates a need to maintain focus on major gifts, however, as we have seen in previous years, this is not a sustainable strategy. In Q1 of 2023, for example, a decline in major gifts caused an outsized decline in dollars, with no alternative sources of revenue to compensate. As the chief data officer at Giving Tuesday, Woodrow Rosenbaum, said in a recent episode of AFP’s podcast, these FEP quarterly reports are not weather reports. They are not something that has happened to us, we as fundraisers have the ability to alter future outcomes by prioritizing the areas where we are continually seeing problems, i.e. donor retention. Doing this will take a combination of tried-and-true strategies, such as more meaningful donor stewardship, personalized expressions of gratitude, and providing evidence of the impact of donor gifts. It will also require infusing our old strategies with new approaches, including the use of AI to identify and connect with donors outside of our typical donor bases and being open to new forms of giving, including accepting donations through donor-advised funds.
   
   Resources for AFP Members: Check out AFP’s library of on-demand webinars on topics like converting one-time year-end donors to lifetime supporters, engaging with donors from different generations, and donor stewardship in a resource-limited environment.

The fundraising world is dynamic, and staying ahead requires adaptability and innovation. By embracing these trends, nonprofits can strengthen donor relationships, enhance their mission’s visibility, and secure the resources they need to drive meaningful change.