9 Trends in Philanthropy and Fund Development

The world has certainly changed a lot since the pandemic. We work differently, think differently about how we spend our time and money, and have new technologies that can augment – or detract from – our work. These trends impact donors and prospective donors and, in turn, nonprofit organizations and our fund development work.

Here at Wastyn & Associates, we do our best to stay current with these trends so we can provide you with the most relevant advice for today’s world, grounded in well-established elements of human nature, human motivation, and basic economics.

Today, we share with you 9 trends that you and your organization might consider embracing – or at least monitoring.

Artificial Intelligence. The explosive growth of artificial intelligence and predictive analytics has significantly changed how all sectors work, including nonprofits. Development teams that pair these tools with the tried-and-true – personal outreach, donor visits, and hand-written notes – can segment more effectively, automate follow-up, and make each ask more personal. Saving you time from the more administrative and mundane tasks allows you to spend more time building relationships with donors and prospective donors – the most important thing that you can do to raise more money.

Diversify, Diversify, Diversify. Simply put, organizations that depend on one or two funders struggle; those that diversify thrive and survive as we saw during the pandemic and see even more in the current federal funding environment, especially for organizations who depend on federal grants and contracts. In addition to the enduring focus on major gift fundraising, membership programs, sponsorships, recurring gifts, and social enterprise strategies work well in 2025.

Prioritize Donor Retention. Retention beat acquisition. Period. Hands down. Fund development professionals who contact lapsed donors before year-end reactivate more support. Stewardship teams who invest time in making check-in calls and sending hand-written thank you notes to donors see higher retention and stronger donor relationships. Monthly giving programs also encourage donor retention. You already know that it costs nearly three times more to gain a new donor than to keep an existing one. Use that knowledge to focus on donor retention.

Digital Giving Continues its Surge. Mobile giving, peer-to-peer platforms, and app-based donations now represent nearly one-third of all dollars raised by nonprofits and nearly two-thirds of all donors. Organizations with user-friendly websites and giving tools capture support from donors who never write checks which includes the 63% of donors who prefer to give online with a credit or debit card. If your donate button requires five clicks or your website does not adapt to phones, you miss gifts. Fix that. Now.

Donor-Advised Funds Grew – Again to remain one of the fastest-growing sources of charitable support. In 2022, nearly 2 million donor-advised funds received approximately $86 billion in contributions, distributed around $52 billion in grants, and concluded the year with about $229 billion in assets. That number continues to climb. Nonprofits that track donor-advised fund giving, thank sponsoring organizations, and cultivate relationships with donor-advised fund advisors access dollars that they might otherwise have missed. If you do not know how many of your donors use donor-advised funds, start asking. Then build a follow-up process that treats them like any other high-impact prospect.

Impact Outpaces Activity. Donors no longer settle for updates on how many clients you serve. They ask what changed – and how their gift created that change. Development staff who share stories, visuals, and data keep donors engaged. Those who post glossy newsletters without outcomes lose attention and support. Make it human, measurable, and real.

Younger Donors Raise Expectations. Millennial and Gen Z donors contribute just over 11% of all dollars given to US nonprofits, with Millennials making up most of that share. A significant wealth transfer to these younger generations means this percentage will likely explode in the coming years. These donors give when organizational missions align with their values. They respond to transparency, timely responses, and strong digital engagement. Nonprofits that lean into these expectations – authentic storytelling, meaningful volunteer opportunities, real-time engagement – earn their trust and their dollars. Ignore these generations, and you lose your future donor base. Instead, engage them now before the wealth transfer begins.

Policy Changes Drive Uncertainty. Proposed tax reforms, new scrutiny of anonymous giving, and questions around donor-advised funds have forced many nonprofits to engage in policy discussions and advocacy for the first time. Ignoring the political landscape may require you to scramble after the fact. Instead, monitor changes at the local, state, and national levels and build advocacy efforts to stay ahead and to influence policy to benefit nonprofits and your organization.

Giving Days Demand Strategy. Giving Tuesday and year-end campaigns do not reward volume – they reward thoughtfulness, focus, and personalization. Nonprofits that pre-segment lists, test subject lines, and build buzz around impact see results. Others that send the same message to everyone – and only send it once – see fatigue and fewer gifts, if any. Plan early. Tell compelling stories. Share results. Make it feel urgent, not overwhelming.

Your organization does not need to chase every trend. Instead, focus on aligning your strategies with what your donors need to see, feel, and trust. In the process, build strong donor relationships, communicate clearly and often, invest in staff and systems that strengthen resilience, and stay nimble and open to change while monitoring the broader environment in which your nonprofit operates. Start with one change – something realistic, actionable, and impactful for your organization. Then keep going.

Would you like help to adapt to these trends? Let’s connect. Your mission matters way too much to fall behind.