Nonprofit sector faces donor decline despite rising gift totals

Charitable giving saw a 5% increase in 2025, marking the strongest growth in five years. However, the total number of donors fell by 3.6%, continuing a downward trend observed since 2021. This shift indicates that growth is increasingly driven by a smaller group of larger gifts, creating a potential sustainability challenge for nonprofit organizations.

To combat declining donor numbers, experts suggest focusing on storytelling and donor retention. The Fundraising Effectiveness Project reports that sector-wide donor retention sits at approximately 43%, meaning more than half of donors are lost annually. Effective marketing strategies emphasize humanizing the mission through specific outcomes rather than broad statistics.

Additionally, planned giving is becoming essential for nonprofit sustainability. Between 2024 and 2025, bequest revenue grew by 19.7% (unadjusted for inflation). While often perceived as a complex process reserved for wealthy donors, planned giving can be implemented by small to mid-size organizations by focusing on gifts in wills and identifying top prospects.