Fundraising Trends: Insights from 2024 & Strategies from BetterUnite

Amidst the economic uncertainty that has defined the first part of 2025, many nonprofits are grappling with where to place their fundraising efforts and what the correct next steps should look like. Taking a look back at the broader fundraising trends of 2024 can be a valuable exercise as we look to make those decisions. 

As a former fundraiser myself and now the CEO of BetterUnite, I not only understand the need for nonprofits to stay informed on fundraising trends, I am also intrigued by data and analyzing those trends for our sector.

The Fundraising Effectiveness Project (or FEP - a collaboration with Giving Tuesday and the Association of Fundraising Professionals, with data provided by software companies among whom BetterUnite is proud to be included) has released their Q4 report on giving in the US, and it highlights both encouraging progress and ongoing challenges.

Giving Grew, but from Fewer Donors

The total dollars raised in 2024 increased by 3.5% year-over-year - a promising sign. However, this growth comes alongside a concerning -4.5% decrease in donor numbers. In other words, fewer people gave money, but that smaller group of people gave more. This shift follows a pattern: it is the fourth consecutive year of declining donor numbers. This shift means that high-dollar donors are even more instrumental in driving overall giving.

Retention Challenges

Another concerning result of the FEP report is the decline in donor retention rates by -2.6%. Micro donors (people who gave $1-$100) and small donors (people who gave $101-$500) in particular are being lost at alarming rates. Historically, this segment of donors has formed the foundation of broad-based, community-centered support for nonprofits. Even mid-sized donors (giving $501-$5,000) slipped by -1.2% this year, unevenly weighting the major ($5,000-$50,000) and supersize ($50,000 plus) donors in the overall gifts.

Turning Insights into Action

The FEP report isn't just a summary of giving trends, it's a roadmap for action. I wanted to not only interpret the reports numbers for you, I wanted to suggest actionable steps you can take right now.

• Rebuild Grassroots Pipelines: Micro, small and midsized donors are not gone - those real people with real budgets and money are simply diverting their spending to different priorities. Investment in small donor acquisition efforts is paramount - those that leverage storytelling, more accessible giving opportunities and levels, first-time donor incentives and more game-ified options.
  
  
• Engage Donors Early to Prevent Attrition: Don't wait until year-end giving days come around to engage ALL donors. Starting now, stewardship campaigns that target donors from 2024 who have not yet given in 2025 can re-inspire engagement and also boost retention rates.
  
  
• Leverage your Data: Evaluate your 2024 donation performance carefully. Identify successes, any failures and pinpoint where efforts fell short, then adjust your strategies accordingly. Data-informed decisions have the greatest chance of success in the challenging fundraising landscape in which we find ourselves mid-2025.
  
  
• Balance the Metrics: It's true - there are risks associated with overall donation growth from fewer donors. Therefore, it is essential that nonprofits begin to measure success based on donor engagement and retention, not just by gross dollars raised. Transparency in these metrics will ensure that everyone in your organization understands and contributes toward fundraising strength.

Moving Forward and Doing Good, Together

At BetterUnite, we believe deeply in the power of actionable data coupled with strategic innovation. The Fundraising Effectiveness Project’s latest report underscores the timeliness and necessity of this approach. Our collective goal for 2025 must be to reverse the decline in donor engagement by prioritizing long-lasting connection with ALL of our supporters, regardless of the size or scope of their gifts.

Together, as a nonprofit sector made stronger by the unique, once-in-a-generation challenges we face today, we can leverage these insights to adapt our strategies and ensure a thriving future of nonprofits and the communities we serve.

We may not be able to eliminate uncertainty but we can mitigate risk and make 2025 one of our strongest years yet.

*all data in this blog comes from the Fundraising Effectiveness Project's Q4 report found HERE