At this year’s Bridge Conference — a joint effort of the Association of Fundraising Professionals (AFP) Washington DC Metro Area Chapter and the Direct Marketing Association of Washington — I attended a thought-provoking presentation that unpacked the latest data from sources such as Giving USA 2025, the Generosity Commission, and the Fundraising Effectiveness Project. The presenters shared deep insights into donor trends, sector shifts, and what’s next for nonprofit fundraising.
Here are ten highlights from that session:
1. Individual Giving Still Dominates
The big picture hasn’t changed: 9 out of every 10 dollars still comes from individual donors. While corporate giving hit a record high, it remains just 7% of the total. Foundations represent 19% of the total.
2. Donor Declines and Rising Dollars
Charitable dollars are up overall, but donor counts and participation are down. Many donors who stopped giving during the pandemic haven’t come back, a trend confirmed by both Giving USA 2025 and the Generosity Commission.
3. Retention Rates and Monthly Giving: a not-so-hidden opportunity
While overall donor retention rates are down, donor retention among monthly/recurring donors sits at around 45%, strengthening the case for monthly giving programs.
4. A Generational Wealth Shift — Led by Women
The long-anticipated intergenerational wealth transfer is underway. Importantly, women will control a large share of this wealth, making them essential voices and decision-makers for nonprofits to engage.
5. Changing Sector Priorities
Religion (primarily houses of worship) still receives the most charitable dollars, but human services are steadily gaining on education as a leading cause category.
6. Long-Term Donors Are Gold
Consistency matters: donors who have given for 20+ years remain among the most reliable. Identifying and stewarding these long-time givers can be a cornerstone of donor strategy.
7. Tax Deductions Play a Smaller Role
Between 88–90% of Americans do not itemize deductions, meaning their giving is not influenced by charitable tax breaks. This reinforces that idea that values and impact are major drives of giving among most Americans.
8. Nonprofits’ Economic Footprint
The nonprofit sector is the third largest US employer, contributing about $65 billion in payroll taxes. Beyond their impact on communities, nonprofits are a significant piece of the US economy.
9. Foundation Giving Cannot Make Up for Government Grant Cuts
30% of nonprofits receive grants from the government. With recent volatility in government funding, human service organizations — those nonprofits that provide essentials like food, healthcare, shelter, etc. — are most vulnerable. 40% of those government grantees report that government funding is a primary source of their revenue (which makes sense, as the people they serve are unlikely to be able to provide major financial support). Private foundations would need to increase grant making by 282% to make up for recent cuts in government grants.
10. Technology for the Win!
Donors are expressing increased comfort with virtual interactions. 40% have used a smartphone to make a gift. AI can suggest worthy causes and organizations based on a person’s giving history and interests, so finding ways to maximize your nonprofit’s generative AI discoverability can make a difference.
What To Do Next
The big takeaways:
- Double down on retention, especially through monthly giving programs.
- Recognize the wealth transfer and adapt stewardship strategies for women donors.
- Highlight consistency and loyalty in donor recognition.
- Keep individual donors front and center while exploring corporate and foundation gifts as complementary streams.
Fundraising is shifting, but the fundamentals—relationships, consistency, and clarity about donor impact—are as critical as ever.
Special thanks to the presenters of The Future of Philanthropy: Key Trends and Takeaways from Giving USA 2025 and the Generosity Commission at the 2025 Bridge Conference: Wendy McGrady, President and Chief Operating Officer, The Curtis Group; Chair, Giving USA Foundation and Tooshar Swain, Director of Public Policy, Americans for the Arts. Their insights, along with data from Giving USA 2025 and the Generosity Commission, informed much of the content in this post.
Don’t miss out on new ideas and great tips on fundraising, leadership, writing, philanthropy, and lots of related topics. Join the PITCH list to get Lauren’s monthly newsletter delivered straight to your inbox, and get a free gift when you sign up!