What's Changed in Fundraising
In the 1980s I fell into fundraising, as so many of us do. I learned a language and a way of thinking that helped me to raise a lot of money for a variety of organizations. And during the 20 years I was a practicing fundraiser, it seemed to me that things were pretty static. You raised money in particular ways and the changes that did occur—giving by credit card instead of checks, more women in the field (and a lowering of salaries). But fundraising was fundraising.
Looking back, of course, that wasn’t true at all. Things were changing all the time. And that is something that hasn’t changed at all.
Then, for the past 17 years, I’ve been consulting—working with nonprofits to help them build capacity (or, as my tagline says, “moving them from mired to inspired). And what mainly changed in fundraising it seemed had to do with size. Organizations that had the wherewithal to hire professional staff typically (but not always) raised more money and were more sustainable.
And then, 2020 happened.
Suddenly, everything seemed to change. Some of that, of course, was situational. Special events couldn’t happen, nor could in person meetings. The way we connected had to change. And it did (though I fear that now, things are returning—with a vengeance—to the way they were. Organizations that discovered that their special events cost more than they were worth, are back to those special events.
Beyond that, much about fundraising has changed, and you really need to be aware of how these changes affect you.
For starters, there have been seismic changes in giving. Individual giving is actually way down, and foundation giving has increased a lot. Along with increased foundation giving, however, many foundations have recently gone through their periodic thinking about their giving. Some have changed interest areas—of great concern to existing grantees—and many others have gone to invitation only proposals, an issue for those nonprofits who haven’t been invited.
Individual giving, of course, is still the biggest piece of this pie, but at an even decreasing percent. When I started fundraising, individuals provided about 80% of all charitable gifts, with another 6% given by bequest. In 2024, that percentage was down around 67%. This is a problem. You all should be concerned that fewer families are giving.
Philanthropy is often considered a “nice to do” rather than something you must do. 2020–again—and the recent inflation, made a lot of people reconsider their financial priorities. Nonprofits have suffered. I think this is for two reasons:
Too many nonprofits forget about donors in between asks
And too many nonprofits never bother to learn what is important to those donors
This could be a topic for an entire book, but for now, plant a seed in your brain to consider how you are cultivating and stewarding donors.
But for all the doom and gloom, do realize that these changes are a wonderful opportunity for you. For eons at least, we (consultants like me) have been telling you that you must have a diversified portfolio of givers. Finally, hear that. And understand that it goes way beyond individuals, corporations, foundation….it means look to younger donors, donors who can only make small gifts—now. And don’t just keep them on your mailing lists, think of real strategies to engage them and to help you learn more about them.
Also recognize that many donors now give through DAFs—and many put money into DAFs, take the tax credit, but somehow neglect to put the money that is in that DAF into a nonprofit. Help to change that. Understand that there is no way you can “target” DAFs. But you can and should talk with your donors about how, if they have a DAF, it is a terrific way to make gifts to your organization.
And just as you must be focusing on younger donors you should be reminding everyone that they can leave a legacy that will allow their passions and values to live forever. Planned gifts should be a part of your fundraising plan—even if your PG Program is only about simple bequests
Back to the present. You must be considering younger donors because we are at the start of a huge transfer of wealth. Many Gen X, Y(AKA: millennials) and Gen Z’ers will inherit both cash and some will inherit the management of those DAFs and family foundations. And even if they don’t, while they may not be wealthy now, who knows what tomorrow may bring. More importantly, loyal annual donors often end up giving a lot more than we give them credit for—and oftentimes, bring along their friends.
As you are focusing on these younger donors, you need to learn how they are different than the Boomers you have been relying on. Ask what do they care about? How do you reach them? And critically—because this is a real issue—how do you gain their trust?
You will need to change your messaging and the ways you go about raising funds. Remember my comments about big special events? Well, what could replace them that would appeal to a younger donor who wants to have a personal connection with the organization and who want to be involved in the process and not just the pageantry.
A big change is the ubiquity of electronic and social media. If you are under 40 this may not seem so new, but to many of us—we remember the days before cell phones, personal computers, the Web, and all that go along with those changes. This newer reality means that you are meeting people differently and telling your stories using different mediums. A beautifully printed brochure? No one cares. Think video! A well crafted letter with lots of information? Most people would prefer an email or text—and please, don’t make me scroll.
I’m old enough to remember when giving by check started morphing into giving by credit card. Today, online giving is becoming a norm and that means that you have to think really differently about the experience your potential donors can have. What does your website look like and who does it serve? How hard/easy is it to get to your donor landing page? More than two clicks and trust me, you have lost a number of your potential donors.
All this and more it’s important to you because it changes what you say, what you focus on (keeping current is hard work). And how do you get seen and heard in a space that is really busy and where a lot of users have the money to really make a splash? How do you compete with that? Think about this: 59% of Gen Z’s are motivated to give by a social media post—your job is to know which platform speaks to them, and how to use that platform effectively.
And now we have to (much as I would prefer not to) talk about AI. It is having a huge impact on fundraising. In addition to helping you create content (and the key word here is HELPING as we all know AI is notoriously flawed and doesn’t always get the facts right), AI can help you with a host of analytics, making sure you spend your limited time wisely. BUT, and there is always a but…beyond the issues of AI sometimes making things up, you as an organization must consider how you protect confidentiality of your donors. And, if this matters to you, AI requires a lot of electricity to function. This will impact how quickly we can move away from fossil fuels that are bad for the environment.
So, to circle back—change is the one constant in life. I hope this quick and necessarily incomplete overview is making you consider what is changing in your fundraising life.