2024 was an interesting year for fundraising professionals. Persistent and emerging challenges in the nonprofit landscape coincided with some. While some issues carried over from previous years, new dynamics reshaped the way organizations navigated their work.

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2024: Highs, lows, and lessons learned

Last year was a year of highs and lows for fundraising and advancement professionals. From staffing struggles to shifts in donor behaviors, the year brought challenges that tested the resilience of nonprofits across sectors. However, these hurdles also paved the way for innovation, collaboration, and strategic rethinking, setting the stage for what 2025 might bring.

• The donor market: Fewer donors, more donations

The donor landscape in 2024 presented an interesting problem. While overall donations increased, the donor pool continued to shrink. According to the Association of Fundraising Professionals (AFP), there was a 2% increase in total donations but a 4.5% decline in the number of individual donors. This trend posed a significant challenge for nonprofits reliant on a broad donor base for smaller, recurring contributions.

• Staffing continues to be a tricky problem

Staffing shortages and high turnover rates continued to be among the most pressing concerns for nonprofits in 2024. According to a study by NonProfit PRO, nearly 70% of nonprofits reported struggling with staffing challenges, citing underfunding and burnout as primary drivers.

This crisis was compounded by the competitive job market, which made it difficult for nonprofits to attract and retain talent. High turnover negatively impacted team morale and operational efficiency, forcing many organizations to stretch already limited resources to achieve their goals.

• Navigating tech adoption

The rise of AI and other tech tools has been both a blessing and a challenge for nonprofits.  While AI offers powerful capabilities—from predicting donor behavior to automating administrative tasks—it also requires significant investment in training and implementation. Many teams struggled to fully integrate these tools due to lacking technical expertise or financial resources.

The use of AI also brings forward some ethical concerns that increasingly became relevant throughout the year. There exists the risk of over-automating donor communication, which could lead to a loss of the personal touch that is central to alumni engagement. For smaller organizations, the hype around AI could also lead to investments in tools that did not align with their needs, diverting funds from more pressing priorities.

• Opportunities in adversity

Despite the challenges, nonprofits showcased remarkable resilience. Many embraced hybrid fundraising models, combining virtual and in-person events to engage a broader audience. Charity Digital reported that organizations leveraging digital tools for storytelling and donor engagement saw significant returns on investment.

Additionally, DonorBox emphasized how nonprofits that invested in robust donor communication tools experienced improved retention rates, especially during year-end campaigns.

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2025: Building on Resilience and Innovation

As we move into 2025, nonprofits more than ever need to build on the lessons of 2024 by focusing on sustainable growth and strategic innovation.

Resilience emerged as a defining characteristic in 2024, and nonprofits should ideally look to build upon it by adopting sustainable strategies and scalable practices, to better navigate uncertainty and a world that’s throwing a lot of innovations at us without leaving us much time or resources to consider our approach to each of them. With all that being said, we’d like to explore some broad focus areas that teams and institutions alike should watch out for in 2025:

• Pragmatic tech adoption: Cutting through the hype

The excitement surrounding AI and other technologies in 2024 often led to unrealistic expectations for nonprofits. A research paper published by Lauri Goldkind, Joy Ming, and Alex Fink critically assessed AI’s role in human services, questioning whether it offered genuine value or was simply a trend driven by hype. The study concluded that while AI holds transformative potential, it requires proper alignment with an organization's size, mission, and resource constraints to be effective.

Throughout 2025, Nonprofits should be shifting focus toward scalable and budget-conscious technology solutions. For example, a hypothetical smaller team that only needs a CRM and basic analytics could leverage low-cost digital tools and achieve better outcomes if these tools are customized to their specific workflows and objectives, as opposed to trying to cover all their bases and wasting both resources and time spent on upskilling.

• A renewed focus on People

The staffing crisis doesn’t seem to be letting up anytime soon with 68% of organizations reporting difficulties with recruitment and retention in 2024. Common challenges include toxic work cultures, burnout, uncompetitive salaries, and insufficient training opportunities. Increased investment in professional development, equitable pay structures, and supportive workplace cultures have been big talking points for a while but now they need to become key priorities. Policies aimed at reducing burnout, such as flexible work schedules and mental health support should be a good starting point.

Additionally, peer mentoring and community-building efforts are gaining traction. Nonprofits can leverage mentorship programs and peer support networks to foster a sense of community within their teams, leading to improved job satisfaction and retention.

At the heart of every nonprofit is its people—the staff, donors, and volunteers whose collective efforts drive change. By fostering positive internal cultures and focusing on impactful strategies, nonprofits can inspire trust and loyalty, ensuring their mission thrives in the years to come.

• Deepening donor relations

Nonprofits have responded to the recent donor market shifts by focusing on deepening relationships with existing donors. Strategies such as targeted communication and personalized outreach have since become standard practice. 2025 should be a good year for teams to consolidate knowledge of their tools and long-term goals so that they continue fostering donor loyalty seamlessly. A key area of focus will be on small and medium-sized donors and how teams can turn them into loyal donors moving forward.

With federal budget cuts for nonprofits and institutions seeming likely on the horizon, advancement and nonprofit teams especially in the US will need to explore sustainable alternatives to reach their goals.

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That’ll just about do it for now but with 2025 seeming a difficult year to predict, there should certainly be a lot more to talk about in the coming months.