What not-for-profits need to know about fundraising in 2025

The Institute of Community Directors Australia (ICDA) spoke with the leaders of Fundraising Institute Australia, Equitable Philanthropy and GiveNow to assess the biggest fundraising trends this year.

In summary, their advice to fundraisers is to:

• press supporters to “pay what it takes”
• make the most of artificial intelligence, ethically
• keep gifts in wills at the front of mind
• think strategically
• demand that CEOs and boards take responsibility for raising funds
• invest in lasting relationships over one-off grant applications
• seek regular donations
• build committed members and supporters
• communicate impact more effectively
• commit to learning more about fundraising.

Fundraising peak has an eye on big-picture trends

Ahead of her organisation’s three-day national conference in Sydney, Fundraising Institute Australia (FIA) chief executive Katherine Raskob said three issues that should be front of mind for not-for-profits in 2025 were financial sustainability, artificial intelligence, and preparing for the looming rise in giving through wills.

Push to ‘pay what it takes’ continues

The FIA continues to advocate for “pay what it takes”, aimed ending the funding “starvation cycle” in the sector.

“Carrying on from the significant and positive awareness-raising last year, the “pay what it takes” and “reframe overhead” initiatives are important ones for 2025,” she said.

“It’s incredible that our sector is the only one that publicly competes to show who invests the least. Our sector has been in this ‘starvation cycle’ for so long; we all need to take responsibility for driving the change we want to see.”

The FIA supported a proposal in the Not-for-profit Sector Blueprint – a sector-driven plan being considered by the federal government – which promotes fully funding the NFP sector.

Raskob encouraged organisations to examine initiative four of the Blueprint, and to read research from the Reframe Overhead movement.

Artificial intelligence will test fundraisers

Raskob stressed that while fundraisers should use artificial intelligence (AI), human oversight was essential.

“We know the immense value of this tool for fundraising efficiency and it’s great to see it being used in a sector that can use all the efficiency gains available to us. As with any new tool, we need to train our teams to use the tool in ways that propel us forward while keeping an eye out for the risks.

“It will be important for fundraising organisations, if they haven’t already, to develop AI policies and protocols including transparency on the use of AI in the fundraising context. Of particular concern is the need for human oversight of any product of AI-generation to ensure it aligns with organisational values and does not impose threats to our organisation’s or sector’s reputation.”

The Institute of Community Directors Australia recently produced this help sheet on AI and governance frameworks, and published this special edition of Community Directors Intelligence and this book on the issue.

Fundraisers could benefit from trillions in generational generosity

It’s expected that a huge treasure trove of $2.6 trillion will be handed down to the next generation by 2040 as Australia’s population ages.

Raskob said gifts in wills and “intergenerational wealth transfer opportunities” would grow in importance for charities.

Organisations “need to be proactive with donors and supporters in helping them see the opportunities for charitable gift planning, not only while they are alive, but in perpetuity.”

Organisations should invest in their gifts in wills programs to “unlock a slice of the transfer of wealth”, she said.

Fundraisers gather to address trends

The Institute of Community Directors Australia will attend the FIA conference so it can share practical insights with community directors. The program addresses themes such as:

• seeking funds in a “cruel” and competitive environment
• dealing with the growing expectations of donors
• digital trends in data, metrics, crypto and artificial intelligence
• bequests, wills and intergenerational wealth transfers
• fundraising for advocacy
• fine-tuning storytelling, branding, pitching and fundraising “asks”.

Strategist says good fundraising is about partnerships

Catherine Brooks, chief executive of Equitable Philanthropy and a member of ICDA’s Community Directors Council, is developing an intensive program to be delivered over four weeks in May, for ICDA members wanting to seek funds effectively for the organisations they lead.

Brooks’ key message? “Fundraising isn’t just about asking for money – it’s about demonstrating value, building trust, and inspiring action.”

She argues that in understanding partnerships, charities and NFPs must “think beyond the cheque and consider what they can offer funders”.

This can involve supporting the work of funders by “inviting them into the work, helping them see the impact first-hand”, and linking funding with funder values and priorities.

She cites the example of a national social services charity that gave major donors early access to impact data, strategic plans and future challenges. This led to multi-year commitments from 80% of the funder partners.

In another case, a literacy charity linked to a corporate foundation invited workers to become literacy coaches and witness the benefits of their work. The result? A 50% funding boost the following year.

An organisation that shared key metrics and personal stories with a major philanthropic trust saw the trust then introduce the organisation to three new major donors.

“Funders expect more than passion,” Brooks said. “They want evidence of impact, alignment with their goals, and confidence that their support will deliver measurable results.”

NFPs can achieve a better fundraising result by ensuring directors and senior staff are heavily involved in the effort.

In interactions with funders, your CEO should be your chief relationship builder

“The role of the CEO in fundraising is no longer optional – it is essential,” said Brooks. “Funders want to connect directly with organisational leadership, and CEOs who can effectively pitch their vision, articulate impact and foster trust will open more doors.”

She recommended CEOs prioritise building personal relationships with funders, through one-on-one meetings, networking, and other forms of engagement.

“Your CEO should be meeting with at least one funder or potential donor per month. How else can they effectively develop deep relationships if not via meaningful face to face communication?”

She said boards should set key performance indicators (KPIs) for CEOs on fundraising, such as the number of funder engagements per quarter, and CEOs should receive “pitch training” to help them refine storytelling, donor engagement and presentation skills.

“Funders are increasingly drawn to leaders who can translate complex missions into compelling, actionable narratives,” she said.

Boards must also take ownership of fundraising

Brooks said that boards were often underused in fundraising, “yet their influence and networks can significantly enhance an organisation’s capacity to secure funds”.

“How many members of your board can name the donors and supporters of the organisation? How many of them have met with your donors? How many of them have thanked a donor in the last month, the last year? This type of engagement is key and donors deserve this level of respect and thanks as a minimum for their generous financial support.”

To boost board involvement, Brooks said organisations should:

• have a board-led fundraising strategic plan with clear expectations, roles and goals for members
• provide training to help board members understand their responsibilities in fundraising, including donor stewardship and leveraging personal networks, such as through ICDA’s Advanced Leadership for Chairs
• foster accountability by including fundraising contributions ino board evaluations.

Relationships are more important than randomly applying for grants

Brooks warned that “the era of scattershot grant applications is over”.

“Instead, NFPs must invest time and resources in cultivating meaningful, long-term relationships with funders. Building trust and alignment will yield more sustainable funding than chasing ad hoc opportunities.”

She recommended that organisations:

• have measurable targets for engagement with funders by the CEO and the chair
• allocate resources to researching funders, including identifying potential partners
• shift from a “transactional” to a “relational” approach with funders, involving regular updates, inviting funders to events, and sharing impact stories.

Brooks said resources were available to help organisations do better in all these areas and wrote this help sheet explaining how the Community Compass report on public attitudes towards not-for-profits could be used to understand different donor types.

ICDA’s sibling enterprise the Funding Centre also maintains extensive resources and guidance on funding opportunities, while ICDA trainers offer several relevant webinars and courses

Stay focused for effective online fundraising

Cathy Truong, executive director of donations platform GiveNow, also advised NFPs to prioritise long-term supporter relationships.

“For not-for-profits looking to cut through the noise in 2025, the best strategy is not to chase fleeting attention, but to invest in lasting relationships,” she said.

“Organisations that focus on sustained engagement through regular donations and committed membership bases will build stronger, more resilient communities of support.”

How to keep your donors engaged

She said the “abundance of competition for engagement” from other charities, businesses, influencers and media outlets, coupled with decreasing attention spans, meant that not-for-profits must work smarter to remain relevant and “front of mind”.

While some organisations were naturally the focus of public discourse and media interest, such as those involved in anti-racism, climate change and social cohesion, for others “the challenges are local” and required consistent activity.

“For these organisations, the answer is not to chase the widest possible audience but to cultivate deeper, more meaningful relationships with a committed core base,” Truong said.

She advised those organisations especially to focus on retaining loyal donors instead of chasing casual ones. Strong donations and membership programs would help, she said.

Regular donations will reward canny organisations

Truong said GiveNow’s records showed the value of committed supporters.

“At GiveNow, we have observed that despite broader trends in digital engagement, regular giving has remained largely steady for the past five years. While one-off donations can fluctuate depending on external factors such as economic conditions and media cycles, regular donors provide a stable, predictable source of income. On average, we see that monthly donors stay engaged for approximately two years, making them an incredibly valuable segment for organisations looking to build sustainability.”

Practical steps for improving a regular giving strategy included:

• encouraging monthly giving in donation appeals
• communicating impact consistently to show donors how their contribution was making a difference
• being flexible, and allowing for adjusting and pausing payments.

Building a committed membership will pay dividends

Truong also stressed the value of a healthy membership.

“A well-structured membership program is more than just an annual donation, it is a way to secure permission for ongoing engagement. Membership models encourage people to invest in your mission not just financially, but also emotionally and socially,” Truong said.

A strong membership program provides:

• a reliable annual revenue, enabling long-term planning
• regular communication opportunities with engaged members
• a readymade advocacy network to promote an organisation’s messages.

Truong said that organisations seeking to develop their membership program should:

• offer tangible benefits, such as exclusive reports and event invitations
• use storytelling – including case studies or key metrics – at least every six months to remind members why their support matters
• use digital tools to provide seamless sign-up and renewal processes.

GiveNow – related to ICDA as one of Our Community’s social enterprises – boasts more than 5,000 causes and more than half a million donors on its web-based giving platform, including thousands of mid-sized and smaller groups.