I’ve been thinking about the new year, and suffice it to say, this coming year will be A.LOT. While I don’t have a crystal ball, there are some key issues I am watching that have the potential to impact the nonprofit space significantly. Here they are:
Merger(s) Ahead: Collaboration Over Duplication
Too many passionate individuals launch nonprofits only to face challenges like limited funding, leadership gaps, and duplicated efforts. Studies reveal that 30% of nonprofits fail within 10 years. Instead of creating a new organization, why not strengthen an existing one with scalable, lasting impact?
Collaboration and consolidation amplify resources and results. Funders have long pushed for collaboration—now it’s time to back it with serious investment. Why have 15 organizations tackling the same problem when one or two could do it better together?
AI in Nonprofits: Stop the Hand-Wringing
AI is already revolutionizing the sector. A 2023 McKinsey report showed organizations using AI saw a 20-30% productivity boost. Nonprofits adopting AI tools—like donor analytics, chatbots, and automated workflows—can improve engagement and boost fundraising without overburdening staff.
AI isn’t replacing people; it’s empowering them. Think of it as the eager college intern who handles repetitive tasks, freeing your team for mission-critical work. Yes, ethical considerations matter, but AI’s potential to streamline operations and enhance supporter connections cannot be ignored.
Beyond “Rah-Rah” Community: Time for Action
The era of surface-level connections and endless talk is over. Research shows communities practicing mutual aid and resource-sharing recover faster and more equitably during crises. Millennials (61%) prefer active participation over passive donations.
Nonprofits must prioritize meaningful action and collaboration, fostering real, tangible change. It’s time to move beyond “rah-rah” moments and build resilient communities through bold initiatives.
Authentic Relationships Are Non-Negotiable
Development is about people, not automation. While tech tools like AI enhance efficiency, authentic relationships drive donor retention. Data shows 71% of donors are more likely to give again when they feel personally connected to a cause.
Building trust and fostering genuine connections require effort, time, and a human touch. No tool can replace the power of authentic engagement.
Make Donating Simple: Stop Putting Up Barriers
Is your nonprofit’s donation process stuck in 2008? Poorly designed donation pages can cost you. For example, 18% of donors abandon donations when required to create an account.
Optimize your donation page for clarity, ease of use, and modern trends like donor-advised funds (DAFs), peer-to-peer giving, and mobile donations. A streamlined donation experience is vital for fostering relationships and completing the donor journey.
Invest in Tech or Risk Irrelevance
Despite a 42% increase in digital fundraising from 2019-2022, many nonprofits allocate less than 5% of their budget to technology. This underinvestment leads to inefficiency, burnout, and missed opportunities.
Failing to prioritize tech in 2025 will be the downfall of nonprofits unwilling to adapt. Accidental technologists—those forced into tech roles without resources—are already struggling. The solution? Commit to strategic investments in technology for sustainable growth.
The Future of Nonprofits Is Here
The trends are clear: nonprofits must collaborate, embrace AI, focus on authentic relationships, streamline donor experiences, and invest in technology. The time for action is now—adapt or be left behind.
Keywords: nonprofit trends 2025, nonprofit collaboration, AI for nonprofits, donor engagement strategies, nonprofit technology investment, fundraising optimization, authentic donor relationships.