Latest / The Nonprofit Podcast / Ep 148| 5 Fundraising Trends to Watch in 2025
Transcript
- 0:04SPEAKER_01: The Nonprofit Podcast, powered by DonorBucks.
- 0:09SPEAKER_01: It's 2025, and there's never been a more exciting time for nonprofits to fundraise.
- 0:15SPEAKER_01: With giving patterns evolving and new tools and strategies emerging, there's so much potential for organizations like yours to thrive.
- 0:24SPEAKER_01: But where should you focus your efforts?
- 0:27SPEAKER_01: Welcome to the Nonprofit Podcast.
- 0:29SPEAKER_01: I'm Jenna, Education and Community Engagement Manager here at DonorBox.
- 0:34SPEAKER_01: We are here each week with practical actions you can use today to take your nonprofit to the next level tomorrow.
- 0:41SPEAKER_01: Today we are exploring five key fundraising trends for 2025 that can help you amplify your impact, strengthen donor relationships, and raise more money for your cause.
- 0:53SPEAKER_01: Joining me is Lindsay Bauer, Donor Box's content marketing manager and the writer behind a fantastic blog post on this very topic.
- 1:02SPEAKER_01: Lindsay, thanks so much for being here today.
- 1:05SPEAKER_01: Thanks, Jenna.
- 1:06SPEAKER_01: I'm excited to be here and to talk about these trends.
- 1:08SPEAKER_01: I'm excited too.
- 1:10SPEAKER_01: I really loved reading this blog article.
- 1:12SPEAKER_01: What stood out to me is how these trends aren't just big ideas, they're real opportunities for nonprofits to step up their fundraising this year.
- 1:20SPEAKER_01: So I want to dive right in.
- 1:22SPEAKER_01: The first trend you mentioned is individual giving.
- 1:26SPEAKER_01: And I think many organizations have seen the decline in recent years, but the good news is that it's projected to grow by 3.4% in 2025.
- 1:36SPEAKER_01: And you highlighted in your article, according to the Lilly Family School of Philanthropy, individual giving is bouncing back.
- 1:43SPEAKER_01: Of course, we're not completely out of the woods yet, but with inflation slowing down, it's looking a little more promising, I think.
- 1:50SPEAKER_01: Individual giving is still one of the most reliable income sources for nonprofits, but many organizations struggle to make the most of it.
- 1:58SPEAKER_01: What do you think is driving this growth and how can nonprofits really tap into it?
- 2:05SPEAKER_02: It's definitely an exciting time.
- 2:07SPEAKER_02: And you're right, individual giving has had its ups and downs, but the projected growth is really promising.
- 2:12SPEAKER_02: I think one of the biggest drivers here is that donors want to feel connected to the cause, not just send in a check, end of the transaction there.
- 2:21SPEAKER_02: Nonprofits that are focusing on building those personal relationships are really seeing results.
- 2:27SPEAKER_02: One thing I'm noticing too is that more nonprofits are doubling down on recurring giving.
- 2:33SPEAKER_02: When you focus on recurring donations, you're building a loyal donor base.
- 2:37SPEAKER_02: Recurring donors are so valuable.
- 2:39SPEAKER_02: They give up to 42% more per year than one-time donors, and their retention rate is 78% compared to the industry standard of around 30 to 35%.
- 2:49SPEAKER_02: So nonprofits that focus on making recurring giving as easy and impactful as possible are in a great position to grow in 2025.
- 2:57SPEAKER_01: Oh yeah.
- 2:58SPEAKER_01: I've seen firsthand how important it is to build that relationship with donors.
- 3:03SPEAKER_01: And when you show them that they're not just a one-off contributor or, you know, but a true partner in your mission, it makes such a difference.
- 3:11SPEAKER_01: And we've worked with many nonprofits that have really focused on donor retention by making the experience personal.
- 3:18SPEAKER_01: And they've sent thank you videos from staff and even celebrated donors' anniversaries of their first GIF or their recurring gifts.
- 3:25SPEAKER_01: And little touches like that have helped increase their donor retention rate by over 20% in one instance of one nonprofit that we've been working with closely in just six months.
- 3:35SPEAKER_01: And it's all about recognizing those moments that make donors feel special to really tap into that individual giving better.
- 3:42SPEAKER_02: That's such a great example.
- 3:44SPEAKER_02: Really, those small personal touches build trust and loyalty with donors.
- 3:49SPEAKER_02: Another thing I'm seeing too is nonprofits making it super easy for people to sign up for recurring donations.
- 3:55SPEAKER_02: And the easier you make it, the more likely they are to commit.
- 3:59SPEAKER_02: A simple, clear donation process really goes a long way.
- 4:03SPEAKER_02: And the easier you make it for donors to give, the more likely they are to keep giving.
- 4:08SPEAKER_02: I think we'll see nonprofits using tools like DonorBox's recurring donation feature more and more to get the most out of individual giving.
- 4:16SPEAKER_02: These tools help automate the process and make it easier to keep those donors engaged long term.
- 4:22SPEAKER_02: It's all about making the process seamless while also showing donors that their support really matters.
- 4:28SPEAKER_01: Yeah, absolutely.
- 4:29SPEAKER_01: It's all about making it easy and making it feel meaningful.
- 4:33SPEAKER_01: And um, okay, another trend you highlighted in your article is data-driven fundraising, which is something I'm super excited about.
- 4:41SPEAKER_01: I love data.
- 4:42SPEAKER_01: And in 2025, it's more important than ever, I think, for nonprofits to leverage data to make smarter decisions.
- 4:50SPEAKER_01: I mean, we live in a world where data is everywhere.
- 4:54SPEAKER_01: And if you're not using it to drive your fundraising, you're likely missing out on some really key opportunities.
- 5:01SPEAKER_01: Uh, so you mentioned that a study by McKinse found that companies with a data-driven approach outperformed competitors by up to 20%.
- 5:10SPEAKER_01: That's huge, right?
- 5:12SPEAKER_01: And if it's working for businesses, there's no reason it can't work for nonprofits too.
- 5:17SPEAKER_01: Nonprofits are businesses.
- 5:18SPEAKER_01: So focusing on data gives you this competitive edge and it leads to better decision making, more efficient fundraising, and even better, a deeper understanding of your donors.
- 5:30SPEAKER_01: But where do nonprofits even start?
- 5:33SPEAKER_01: I think this can be a little intimidating.
- 5:35SPEAKER_01: Do you have some tips or key metrics that they should be tracking?
- 5:39SPEAKER_02: Yeah, data is definitely something that can be overwhelming for many organizations, right?
- 5:44SPEAKER_02: Especially when they're just starting to think about how to use it strategically.
- 5:49SPEAKER_02: But ultimately, the truth is data is just your roadmap.
- 5:53SPEAKER_02: It tells you where you've been, um, but also where you're headed.
- 5:56SPEAKER_02: First off, if you're not tracking your ROI or return on investment per donor or the conversion rate for your latest campaign, really easy to access stats like that, now is the time to start.
- 6:10SPEAKER_02: In today's data-driven world, those metrics are crucial for understanding where your efforts are paying off and where there's a little room to improve too, right?
- 6:18SPEAKER_02: And it's not just about the numbers, data helps you connect with your supporters in more meaningful ways.
- 6:24SPEAKER_02: So, one of the first steps I recommend is upgrading your tools.
- 6:28SPEAKER_02: You need to be able to track donor behavior so you understand how people are interacting with your donation form and with your landing pages.
- 6:35SPEAKER_02: So I suggest using tools like Google Analytics and MetaPixel to track those kinds of behaviors.
- 6:40SPEAKER_02: And those are really easy to use with your donor box donation form too.
- 6:44SPEAKER_02: When it comes to other kinds of donor information like giving behavior, investing in a CRM like donorbox CRM is crucial.
- 6:51SPEAKER_02: It's built to give you those insights you need without making it too complicated to access them.
- 6:56SPEAKER_02: You can track donor information, donations, and even let AI tools like DonorBox's JAI sort through it all and create visualized reports to make decision making easier.
- 7:07SPEAKER_01: I like how you're tying this all back to understanding the donor experience.
- 7:13SPEAKER_01: So it's not just about these numbers on a screen, it's about connecting those dots between those numbers and your supporters' behavior and how they're interacting with your nonprofit at various levels and stages in their journey, right?
- 7:26SPEAKER_01: I think a lot of nonprofits can really benefit from also direct feedback from their donors, too, like surveys.
- 7:34SPEAKER_01: That's another form of data that a lot of nonprofits don't usually rake in.
- 7:38SPEAKER_01: A tool like Google Forms or a SurveyMonkey is an easy free way to collect insights about what your supporters care about, what motivates them, and where they think, you know, your organization can improve.
- 7:49SPEAKER_01: And I think that data as well can be super helpful in shaping your future campaigns.
- 7:53SPEAKER_02: Exactly.
- 7:54SPEAKER_02: Yeah, surveying your donors can provide some really good insights into their preferences, interests, and also concerns.
- 8:02SPEAKER_02: You'd be surprised how much you can learn by asking a few thoughtful questions.
- 8:05SPEAKER_02: And then the next step after all of this is applying all of that data in a meaningful way.
- 8:11SPEAKER_02: You need to make sure your whole team is on board with using data to drive decisions.
- 8:16SPEAKER_02: So this means cultivating a culture that values data and regularly reviewing what you're learning as you go.
- 8:22SPEAKER_02: I recommend setting up quarterly meetings with key stakeholders to dive into the metrics and discuss any adjustments you want to make.
- 8:29SPEAKER_01: Yeah, I think that's great advice.
- 8:31SPEAKER_01: You can have all the data in the world, but then what are you doing with it?
- 8:35SPEAKER_01: So keeping everyone on the same page and being open to adjusting your strategies based on that is the key here.
- 8:42SPEAKER_01: When you can look at your data and say, okay, we know this donor tends to give around this time, or this group is more likely to engage with this campaign.
- 8:50SPEAKER_01: It just makes your outreach so much more effective and efficient, which makes your work more rewarding as well.
- 8:55SPEAKER_01: Okay, on to the next trend you mentioned for 2025, and that is embracing digital tools for engagement.
- 9:04SPEAKER_01: Nonprofits have been using digital platforms for years now, but you mentioned that 2025 will see an even more robust use of these tools to engage with donors in new ways.
- 9:14SPEAKER_01: So, what tools do you think nonprofits should really focus on this year to elevate their engagement strategies?
- 9:20SPEAKER_02: Yes, we are definitely seeing more nonprofits adopting tools like AI and automation.
- 9:26SPEAKER_02: And I think 2025 is going to be a big year for really leveraging these technologies.
- 9:31SPEAKER_02: The great thing about AI is that it can help nonprofits create highly personalized communications at scale.
- 9:38SPEAKER_02: Imagine being able to generate things like thank you emails or social media posts, but still have them feel authentic and representative of your brand's voice.
- 9:49SPEAKER_02: What I'm really excited about though is how these tools are going to help make donor communications even more meaningful, but without the burnout.
- 9:58SPEAKER_01: Yes, absolutely.
- 10:00SPEAKER_01: It's all about working smarter, not harder.
- 10:03SPEAKER_01: I mean, with tools like DonorBox's AI assistant, JAI, which you've mentioned earlier, nonprofits can write those personalized, tailored messages without the manual effort.
- 10:14SPEAKER_01: Instead of like sending out these generic thank you notes that are just like built into any template or form, JAI can help you create messages that reflect each donor's unique experience with your organization, but still in a way that is authentic to your brand.
- 10:27SPEAKER_01: And it's such a powerful way to build stronger connections and make donors feel valued.
- 10:32SPEAKER_01: I'm seeing a theme here for this year, just more connection and more engagement.
- 10:36SPEAKER_02: Yes, you can never go wrong with more connection and more engagement for sure.
- 10:40SPEAKER_02: And when you think about scaling that personal touch, that personal engagement, it becomes a game changer.
- 10:47SPEAKER_02: Often nonprofits can't send handwritten notes or make calls to every donor, right?
- 10:52SPEAKER_02: But with these digital tools, you can replicate that personal touch on a much larger scale.
- 10:58SPEAKER_02: So, for example, you could automate thank you emails that include a specific message for donors based on the amount they gave to the campaign they supported.
- 11:07SPEAKER_02: So you can get really specific with your segmentation there.
- 11:11SPEAKER_02: And creating social media posts with design platforms like Canva and with social media schedules like Hoot Suite, you can make your outreach more engaging, more impactful in the long run, and less time consuming for you and your team.
- 11:25SPEAKER_01: 100%.
- 11:26SPEAKER_01: That's why I love tools like donor boxes, CRMs, automated moments with automated moments, for example, nonprofits can automatically connect with donors for important milestones like birthdays or anniversaries or first donations or cancellations or changes to the recurring giving plan.
- 11:43SPEAKER_01: And when your outreach is efficient and personal like that, it really sets you up on a whole new level.
- 11:49SPEAKER_02: Yeah, it's all about using technology to enhance, not replace that personal connection.
- 11:55SPEAKER_02: And that's why it's important to focus on tools that allow for automation and personalization.
- 12:00SPEAKER_02: Whether you're a smaller nonprofit just getting into digital tools or a larger one looking to streamline, using the right tech can really transform how you engage with your donors.
- 12:11SPEAKER_02: And in fact, this is really a common trend these days.
- 12:14SPEAKER_02: 92% of nonprofits believe that AI can help them drive engagement.
- 12:19SPEAKER_02: And that's a huge number.
- 12:20SPEAKER_02: The more you can automate and personalize your outreach, the better your chance of creating long-lasting donor loyalty.
- 12:27SPEAKER_02: I will say, donors, of course, still crave authenticity.
- 12:31SPEAKER_02: So automation should never feel robotic, right?
- 12:35SPEAKER_02: It's about striking that balance, staying connected, being authentic, and using technology to enhance those relationships, not replace them.
- 12:43SPEAKER_01: Totally.
- 12:44SPEAKER_01: Always all about authenticity.
- 12:47SPEAKER_01: All right, let's talk about trend number four, and that is planned giving.
- 12:52SPEAKER_01: It's a topic that, despite its incredible potential, tends to get overlooked by many nonprofits.
- 12:58SPEAKER_01: But you recently highlighted how the great wealth transfer is in full swing.
- 13:04SPEAKER_01: And I know our listeners will definitely find this fascinating.
- 13:07SPEAKER_01: And we actually had a full episode about this, and that's episode 117 of the nonprofit podcast.
- 13:13SPEAKER_01: So I encourage our listeners to go back and check it out.
- 13:16SPEAKER_01: But can you break down what this means for nonprofits, Lindsay, and why it's such an exciting opportunity to explore plain giving this year?
- 13:24SPEAKER_01: Absolutely.
- 13:25SPEAKER_02: The Great Wealth Transfer is a big opportunity for nonprofits, and it's happening right now.
- 13:30SPEAKER_02: We're talking about trillions of dollars shifting hands as baby boomers pass on their wealth to heirs, including their favorite charities.
- 13:39SPEAKER_02: Experts predict this transfer could reach$124 trillion over the next 23 years, which is an incredible amount of funding for nonprofits, and about$18 trillion of it is expected to go directly to charitable organizations.
- 13:56SPEAKER_02: But nonprofits need to keep in mind that the remaining$106 trillion that's being given to heirs, it also creates a huge opportunity for nonprofits to tap into.
- 14:08SPEAKER_02: As the wealthiest generation passes on their assets, there's a huge increase in the number of wealthy individuals, many of whom are passionate about giving back.
- 14:17SPEAKER_01: This is such a huge opportunity.
- 14:19SPEAKER_01: This is a mind-boggling amount of money.
- 14:22SPEAKER_01: So if nonprofits haven't already been thinking about plan giving, they really need to start now, right?
- 14:29SPEAKER_02: Yeah, absolutely.
- 14:30SPEAKER_02: The time is now for sure.
- 14:32SPEAKER_02: Plan giving is all about building relationships with donors today.
- 14:36SPEAKER_02: So they'll think of your organization when they're deciding how to allocate their wealth down the line.
- 14:41SPEAKER_02: It's not just about waiting for these surprise bequests, it's about fostering loyalty now, which pays off in those larger gifts later on.
- 14:50SPEAKER_02: And while planned gifts are often seen as unexpected windfalls, they should really be treated as an important piece of your fundraising strategy.
- 14:58SPEAKER_02: If nonprofits don't have a planned giving program in place now, or in place yet, now is the time to prioritize it, even if you can't always predict the exact amount you'll receive each year.
- 15:11SPEAKER_02: This is ultimately an investment for long-term sustainability.
- 15:15SPEAKER_02: A lot of organizations may not have the capacity to count on planned giving as a regular revenue stream, but it's something they definitely want to nurture.
- 15:23SPEAKER_02: And with this ongoing wealth transfer, there's an incredible chance to capitalize on that relationship building, especially when you consider how many younger heirs are now coming into wealth.
- 15:33SPEAKER_02: It's not just about baby boomers anymore.
- 15:35SPEAKER_02: There's an opportunity with millennials and Gen Z too, who are looking for ways to support causes they're passionate about.
- 15:42SPEAKER_01: Yes, millennials and Gen Z are really starting to make their mark in philanthropy, which I love to see.
- 15:49SPEAKER_01: And many of these younger donors are not just interested in traditional ways of giving either, right?
- 15:54SPEAKER_01: They're embracing things like stock donations and crypto and other alternative ways to give.
- 16:00SPEAKER_01: And nonprofits that can tap into these giving preferences will have a huge advantage.
- 16:05SPEAKER_01: So think about how your organization can develop targeted programming that resonates with these younger, more tech-savvy donors that are bringing in this money from other generations, right?
- 16:17SPEAKER_01: So personalized communication is really key here.
- 16:20SPEAKER_01: They want to feel like they're a part of something impactful.
- 16:23SPEAKER_01: And if nonprofits can show them how their donations make a difference, they will be more likely to give and even plan for future donations.
- 16:32SPEAKER_02: I agree.
- 16:32SPEAKER_02: And when it comes to getting the ball rolling on planned giving, it's honestly never too early to start those conversations with donors.
- 16:40SPEAKER_02: Whether you're sending out information about how they can leave a legacy or just fostering an ongoing dialogue about their values and their vision for your organization, these small steps can really pay off down the road.
- 16:52SPEAKER_01: Yeah, yeah, absolutely.
- 16:53SPEAKER_01: I think the sooner you start talking to your donors about plan giving, the better, even if it's just making them aware of the opportunities or having those early conversations about legacy giving, it's all about laying the groundwork for the future.
- 17:06SPEAKER_01: I've heard from a lot of organizations that um their donors are just waiting for them to ask, right?
- 17:11SPEAKER_01: They never asked.
- 17:12SPEAKER_01: So they never got those legacy gifts.
- 17:15SPEAKER_01: And this is definitely something for nonprofits to think about.
- 17:18SPEAKER_01: The great wealth transfer isn't just something that's gonna happen overnight, it's ongoing, and nonprofits can certainly benefit from it in real, tangible ways if they start prioritizing plan giving today.
- 17:31SPEAKER_01: All right, and that leads us to our final trend for 2025, and that is corporate partnerships and giving.
- 17:39SPEAKER_01: Corporate giving is a major topic, and you mentioned, Lindsay, that it's expected to grow at a slower pace than it has in previous years.
- 17:48SPEAKER_01: Can you walk us through how nonprofits can make the most of these partnerships, even with the more modest growth projections?
- 17:55SPEAKER_02: Absolutely.
- 17:56SPEAKER_02: While the growth rate of corporate giving is slowing down, it's at the end of the day, it's still growth, right?
- 18:03SPEAKER_02: Uh and the opportunities for nonprofits are still significant, especially when it comes to corporate social responsibility programs, also just called CSR programs.
- 18:13SPEAKER_02: Companies are increasingly prioritizing their CSR efforts, and many large corporations like those in the Fortune 500 and SP 500, they issue CSR reports.
- 18:25SPEAKER_02: So CSR is really no longer optional.
- 18:27SPEAKER_02: It's a necessity for these businesses, which makes it a great opportunity for nonprofits to align with these companies in meaningful and productive ways.
- 18:36SPEAKER_01: So it sounds like there's a shift where CSR is really taking center stage.
- 18:42SPEAKER_01: Like you said, for a lot of these companies, it's no longer optional and it is a requirement.
- 18:47SPEAKER_01: So, how can nonprofits get ahead of the curve and tap into these opportunities?
- 18:52SPEAKER_02: Nonprofits should spend time this year building out proposals to partner with corporations, even those that haven't yet shown a direct interest in their cause.
- 19:04SPEAKER_02: So I encourage organizations to really think beyond traditional sponsorships and grants.
- 19:09SPEAKER_02: Corporate partnerships can also include models like workplace giving programs, match and gift campaigns, or even co-hosting events.
- 19:18SPEAKER_02: It's about finding a model that fits both the nonprofit and the corporation's goals.
- 19:23SPEAKER_01: Yes.
- 19:24SPEAKER_01: When I worked at a domestic violence shelter, we had a lot of corporate organizations that had the CSR requirements.
- 19:31SPEAKER_01: And they even came in and passed out lunches for everybody who was living in the shelter.
- 19:35SPEAKER_01: So it can really span a whole bunch of different types of models and programs, as you said.
- 19:40SPEAKER_01: And one that you mentioned is matching gifts.
- 19:43SPEAKER_01: And I know that's an area where nonprofits can really double their impact.
- 19:47SPEAKER_01: I always say if you're not using matching gifts, you were leaving money on the table.
- 19:51SPEAKER_01: So what is your take on how nonprofits can leverage that in this context?
- 19:55SPEAKER_02: Matching gifts are such an underutilized opportunity for nonprofits.
- 20:00SPEAKER_02: Around 65% of Fortune 500 companies offer matching gift programs.
- 20:05SPEAKER_02: So if you're not already promoting that to your donors, you're potentially, like you said, leaving money on the table.
- 20:11SPEAKER_02: You might be missing out.
- 20:12SPEAKER_02: A simple way to make it easier for your donors is by integrating a matching gift tool like double the donation on your donation form.
- 20:20SPEAKER_02: It allows donors to quickly search to check if their employer matches gifts, and then they'll receive an email with the next steps to help them claim that matching gift.
- 20:30SPEAKER_02: It's a great way to increase donations without a ton of extra effort.
- 20:34SPEAKER_01: Okay, I know we've covered a lot of ground today, and all these trends can feel a bit overwhelming, especially right at the beginning of the year.
- 20:41SPEAKER_01: Things took off at light speed, but I want to summarize everything we just talked about.
- 20:45SPEAKER_01: So, first, maximize individual giving.
- 20:48SPEAKER_01: So start building deeper connections with your current donors to increase their engagement and make recurring giving easy.
- 20:54SPEAKER_01: Make all giving easy, but especially recurring giving.
- 20:57SPEAKER_01: You want to use that data, track donor behavior, and use those insights to guide your fundraising efforts and how you engage with your donors.
- 21:05SPEAKER_01: You want to leverage digital tools.
- 21:07SPEAKER_01: So invest in those easy-to-use tools that make donor engagement feel personal and authentic, from AI to Canva to automated posting things like Hootsuite.
- 21:17SPEAKER_01: You do not want to forget that planned giving.
- 21:20SPEAKER_01: Have those important conversations with your key donors about leaving a legacy and explore those corporate partnerships.
- 21:28SPEAKER_01: Find companies that align with your mission for collaboration opportunities.
- 21:31SPEAKER_01: There's so much opportunity there across all sorts of different programs.
- 21:36SPEAKER_02: That is it.
- 21:37SPEAKER_02: And I would say too, you know, don't try to do everything all at once.
- 21:41SPEAKER_02: Pick one or two trends to focus on and take small actionable steps to integrate them into your nonprofit strategy.
- 21:48SPEAKER_02: Over time, you'll see those results.
- 21:51SPEAKER_01: Yes, that is great advice.
- 21:53SPEAKER_01: Start small, stay consistent, and watch your results grow.
- 21:57SPEAKER_01: Lindsay, thanks so much for sharing your insights with us today.
- 22:01SPEAKER_01: Of course.
- 22:02SPEAKER_01: Thank you so much for having me.
- 22:03SPEAKER_01: And thank you for joining us on the nonprofit podcast.
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