Day: January 23, 2025

As we move into 2025, nonprofit organizations face increasing competition for donor attention and support. To stay ahead, nonprofits must adapt to evolving marketing trends that drive engagement, build relationships, and amplify their mission. Research indicates that it can take 18–20 points of contact to reach a new donor, underlining the importance of a multi-channel, consistent marketing approach. By leveraging cutting-edge technologies, personalized storytelling, and data-driven strategies, nonprofits can maximize their outreach and impact.

Here’s a detailed look at the top nonprofit marketing trends for 2025:

1.) Email Marketing:
Personalized and Underutilized

Email remains one of the most effective tools for nonprofits, yet only 68% of organizations actively use it. With 30% of donors inspired to give via email, there’s immense potential to increase donor engagement through tailored campaigns.

Best Practices:

• Segmentation and Personalization: Target specific donor segments based on interests and past interactions to improve engagement.
• Pop-Ups and Visuals: Use email pop-ups on your website (only 28% of nonprofits do this) and visually compelling emails to boost subscriber rates and drive conversions.
• Automated Campaigns: Implement automated email campaigns to nurture donor relationships over time, boosting fundraising effectiveness.

2.) Social Media:
Inspiring Donations and Building Community

Social media remains crucial for donor engagement. Platforms like Instagram, TikTok, and Facebook enable nonprofits to engage audiences through shareable, interactive content. In 2025, incorporating video content, live streaming, and interactive posts will be key.

Key Strategies:

• Visual Content: Posts with images see 650% more engagement than text-only posts. Make use of visuals, behind-the-scenes content, and event promotions.
• Posting Frequency: Aim for 3–4 posts per week to maintain visibility and connection with your audience.
• Live Streaming and Polls: Engage with audiences in real-time to deepen interactions and provide updates on your work.

Content Types:

• Impact Stories: Share real-life stories that highlight the impact of donations and your organization’s work. This helps humanize your cause and builds an emotional connection with your followers.
• Behind-the-Scenes: Provide a glimpse into the daily operations and efforts of your team. This builds transparency and trust with your audience.
• Event Promotions: Announce and promote upcoming events to encourage participation. Create urgency and excitement around fundraising efforts and community gatherings.
• User-Generated Content: Share content created by your supporters to build community and trust. This can include testimonials, photos, and videos, which foster a sense of involvement.
• Live Updates: Use live streaming to engage with your audience in real-time and provide updates on ongoing projects or events. It allows for immediate interaction and fosters a deeper connection with your supporters.

3.) Google Ad Grants:
Amplifying Reach

Google Ad Grants provide nonprofits with up to $120,000 annually in free ad credits, which can significantly boost website traffic and raise awareness. With over 91% of global search engine traffic originating from Google, investing in SEO and Google Ads is a strategic way to attract new donors.

Benefits of Google Ad Grants:

• Increase website visibility and ranking in search results.
• Drive traffic to donation pages and specific campaigns.
• Reinforce your mission through targeted ads aligned with your services.

4.) Mobile Optimization:
A Necessity

With 52% of nonprofit website traffic coming from mobile devices, ensuring your website is mobile-friendly is essential.

Key Features to Focus On:

• Responsive Design: Ensure your site seamlessly adjusts to mobile and desktop views.
• User-Friendly Navigation: Simplify menus and optimize loading times for quick, easy access.
• Accessibility: Incorporate features that accommodate visitors with disabilities to ensure inclusivity.

5.) Storytelling:
Connecting Through Impact

Storytelling remains a powerful tool for nonprofits. Authentic, compelling stories about the individuals and communities you serve can inspire action and build trust.

2025 Trends in Storytelling:

• Multimedia Formats: Use videos, infographics, and photo essays to bring stories to life.
• Diverse Voices: Highlight multiple perspectives to reflect your mission authentically.
• Impactful Narratives: Share measurable outcomes and personal stories that show the real-world effects of your work.

6.) Artificial Intelligence (AI):
Enhancing Efficiency and Personalization

AI tools are revolutionizing nonprofit marketing by streamlining repetitive tasks and providing insights into donor behavior. From automating segmentation to personalizing communications, AI is becoming essential for nonprofits looking to optimize their outreach.

Applications for Nonprofits:

• Donor Segmentation: Automate the process of segmenting donors based on behavior and preferences.
• AI Chatbots: Use AI-driven chatbots to answer common donor questions, saving staff time.
• Personalized Content: Leverage AI to generate social media posts and donor thank-you messages.

7.) Integrated Campaigns:
Consistent Messaging Across Channels

Nonprofits should unify their marketing efforts across email, social media, their website, and print for a cohesive campaign strategy. A consistent message across all touchpoints reinforces your mission and builds deeper connections with your audience.

Why It Matters:

• Coordinated campaigns encourage action and increase donor conversion rates by reinforcing your message through multiple channels.

8.) Data-Driven Strategy:
Optimize for Success

Data analysis is vital for refining marketing strategies. Tracking key metrics like email open rates, website click-through rates, and social media interactions helps nonprofits make informed decisions and improve their outreach.

Best Practices:

• Regularly clean and update your donor data.
• Use tools like Funraise to collect and analyze data efficiently.
• Ensure compliance with data privacy laws to maintain donor trust.

9.) Building Strong Donor Relationships

Fostering lasting relationships with donors is critical for long-term success. In 2025, focus on personalized communication and providing regular updates on how donations are making an impact.

Ways to Strengthen Relationships:

• Personalized Outreach: Segment donors based on past giving behavior and send targeted messages.
• Impact Reporting: Share how donations are being used and the tangible results achieved.
• Appreciation: Regularly thank donors through creative methods like thank-you videos or donor appreciation events.

10.) Leveraging Influencer and Corporate Partnerships

Collaborating with influencers and corporate partners can help amplify your message. Influencers bring in new audiences, while corporate sponsors offer additional resources and credibility.

Benefits:

• Reach wider, often younger, audiences.
• Secure additional resources and support for campaigns.

11.) Video Marketing:
Dominating Engagement

Video content continues to dominate online engagement. Short, impactful videos can showcase your mission, events, and success stories in an easily shareable and memorable way.

Key Tips for Video Marketing:

• Use videos to tell your story in a visually engaging format.
• Share success stories and behind-the-scenes content to connect with viewers emotionally.

Embrace the Future of Nonprofit Marketing

Nonprofit marketing in 2025 will require organizations to embrace emerging technologies like AI, refine their storytelling techniques, and adopt data-driven strategies. By integrating these trends into your marketing efforts, your nonprofit can strengthen donor relationships, raise awareness, and ultimately increase impact in a highly competitive, digital-first world.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Kelli-Anne Cerini

Marketing Manager

Fundraising is more important than ever as nonprofits navigate a challenging landscape marked by inflation, increased competition, and evolving donor expectations.

Community-Centric Fundraising

Building and nurturing a sense of community is becoming increasingly important. Nonprofits are focusing on intimate community events, supporter circles, and local engagement to foster long-term relationships with donors. This approach not only helps in immediate fundraising but also lays the groundwork for sustained support over the years. By creating a strong community, nonprofits can ensure a loyal donor base that feels personally connected to the cause.

Hyper-Personalization

Donors expect personalized experiences similar to what they receive from commercial brands. Using AI and data analytics, nonprofits can create hyper-personalized communication based on donor interests, behaviors, and giving histories. This trend is crucial for building stronger, more meaningful relationships with donors. Personalized messages and targeted campaigns can significantly increase donor engagement and retention.

Digital and Mobile-First Interactions

With younger generations being digital natives, there is a significant shift towards digital-first fundraising strategies. This includes leveraging social media, email, texting, and crowdfunding platforms to engage donors. Traditional methods like phone calls and direct mail are becoming less effective. Nonprofits must adapt to these changes by optimizing their online presence and ensuring that their digital communication is engaging and user-friendly.

AI and Automation

AI is playing a pivotal role in enhancing fundraising efficiency. From AI-powered personalization of donor outreach to using predictive analytics for donor behavior, AI tools are helping nonprofits streamline their processes and improve donor engagement. AI is also being used for grant writing, donor retention strategies, and fraud detection. However, it is essential to balance AI’s efficiency with the need for a human touch in communications to maintain donor connections.

Influencer Fundraising

Collaborating with influencers can amplify a nonprofit’s reach and impact. Influencers, whether they have a large following or a dedicated niche audience, can help spread the word and attract new donors. This trend is expected to grow as more people turn to social media for information and engagement. By partnering with influencers who align with their mission, nonprofits can reach new audiences and build credibility.

Transparency and Impact Reporting

Donors are increasingly interested in seeing the impact of their contributions. Providing detailed impact reports and being transparent about how funds are used can build trust and encourage continued support. This is especially important for engaging younger donors who value transparency and accountability. Clear and honest communication about the use of funds and the outcomes achieved can strengthen donor relationships and boost fundraising efforts.

Peer-to-Peer Fundraising

Peer-to-peer fundraising continues to be a powerful tool. By empowering supporters to fundraise on behalf of the organization, nonprofits can expand their reach and engage new donors. This method leverages the personal networks of existing supporters, making it a cost-effective strategy. Encouraging supporters to share their personal stories and reasons for supporting the cause can inspire others to donate.

Sustainable and Ethical Practices

There is a growing emphasis on sustainability and ethical fundraising practices. Nonprofits are expected to adopt environmentally friendly practices and ensure that their fundraising methods align with their values and mission. Demonstrating a commitment to sustainability can attract donors who prioritize ethical and responsible giving.

Planned Giving

The Great Wealth Transfer is a transformative moment for nonprofits, with between $11 and $12 trillion expected to flow directly to charitable organizations. Planned giving allows nonprofits to build lasting donor legacies by encouraging bequests and other estate gifts. Additionally, with $106 trillion being passed to heirs, nonprofits have a growing opportunity to cultivate relationships with potential major donors, ensuring continued support and impact.

More Nonprofits, Less Giving, and Inflation

Inflation has significantly impacted charitable giving, with 47% of Americans reducing their donations. In 2022, Americans donated the smallest amount in 30 years, representing only the fourth decline in charitable giving in four decades. This decline, coupled with the increasing number of nonprofits (about 100,000 new organizations each year), means more competition for fewer donations. Nonprofits need strategies to do more with less and attract and retain donors despite these challenges.

Machine Learning, Predictive Modeling, and Artificial Intelligence

Advancements in AI are revolutionizing fundraising strategies. Nonprofits use machine learning and predictive modeling to automate donor segmentation and optimize outreach. AI helps answer critical fundraising questions, such as who to contact, how to contact them, and what messaging to use. However, nonprofits should balance AI’s efficiency with the need for human touch in communications to maintain donor connections.

Automation in Fundraising

Emerging technology tools are increasing automation in nonprofits, freeing up staff for mission-based work. Automation tools can handle online donations, donor management, email marketing, event management, and more. While automation improves efficiency, it’s essential to have human oversight to ensure accuracy and maintain a personal touch.

Social Media: Broader Communication and Deeper Relationships

Social media remains a vital tool for nonprofit fundraising. Engaging with donors on social media can lead to significant actions, such as donations, volunteering, and event participation. Nonprofits should leverage social media to reach a broader audience and deepen relationships with supporters. Regular updates, engaging content, and interactive campaigns can keep donors connected and involved.

Generational Power Shifts

As Baby Boomers retire, Millennials are stepping into leadership roles within nonprofits. To ensure smooth transitions, nonprofits should incorporate generational diversity into their leadership teams now. This approach facilitates continuity and prepares organizations for future leadership changes. Engaging younger leaders can bring fresh perspectives and innovative ideas to the organization.

Investing in Gen Z

Gen Z, the largest generation yet, is passionate about change and social causes. While they may not be ideal donors now, building relationships with Gen Z can pay off in the future. Nonprofits should engage with Gen Z early to be top of mind when they become financially capable of giving. Creating opportunities for Gen Z to get involved, such as through volunteer programs or social media campaigns, can foster long-term loyalty.

The Widening Wealth Gap

Income inequality is affecting nonprofit donor bases, with fewer people having the financial capacity to give. Nonprofits must focus on attracting and retaining top donors to ensure sustainability. Building strong donor relationships is more critical than ever. Personalized communication and demonstrating the impact of donations can help retain high-value donors.

Growing Significance of Transparency and Number-Driven Communications

Transparency in operations and financial management is crucial for building donor trust. Nonprofits should use financial data to demonstrate impact and communicate effectively with donors. Annual reports are an excellent opportunity to showcase the organization’s achievements and encourage continued support. Providing clear and concise financial information can reassure donors that their contributions are being used effectively.

Event Planning for Fundraising Success

In-person events are making a strong comeback, and nonprofits need to capitalize on this trend. The events industry is optimistic, with a Knowland survey indicating up to 10% higher attendance for in-person events in 2024, and research by Freeman showing that 82% of people prefer attending events in person. The Enthuse report shows an increasing appetite for fundraising event participation across all age groups, particularly among the young. Three in five 18–24-year-olds are keen to participate in fundraising events, followed by 58% of 25–34-year-olds. Socializing is a key driving force, as people’s social lives need more work post-pandemic, providing an opportunity for charities to consider in their campaigns.

Charities need to think about the best events for their audiences. The Enthuse report found that 42% were interested in exercise challenges, appealing most to those under 45, while a third wanted to get involved in large group events such as fun runs and walks. Women preferred smaller fundraising events associated with wellbeing and social activities, while fun events like karaoke or auctions were preferred by people over 45. Fun is the most important driving force behind fundraising event attendance, referenced by 53% of people, followed by sociability (40%), a well-known cause (32%), ease of signing up (28%), and providing a new experience (25%).

The fundraising landscape in 2025 is set to be dynamic and innovative. By embracing these trends and addressing the challenges, nonprofits can enhance their fundraising efforts, build stronger relationships with donors, and achieve greater impact.

 

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Mahnaz Cavalluzzi, CPA

Partner

In 2025, nonprofits can significantly improve volunteer engagement by focusing on flexibility, technology, and recognition. Here are some key strategies:

1.) Flexible Opportunities:

Offering flexible schedules and remote volunteering options can attract a diverse range of volunteers. This approach accommodates different lifestyles and commitments, making it easier for people to contribute their time and skills.

2.) Leveraging Technology:

Utilizing AI and other technologies can streamline volunteer management. AI can match volunteers with tasks that suit their skills and interests, enhancing their experience and satisfaction. Additionally, online platforms can facilitate better communication and coordination.

• Bloomerang Volunteer: Streamlines volunteer management with custom forms, automated data transfers, scheduling tools, and a two-way sync with Bloomerang’s donor CRM to cultivate donor-volunteer relationships.
• Get Connected by Galaxy Digital: Offers streamlined event management, team coordination, and volunteer profiles to enhance recruitment and engagement.
• Volunteer Local: Simplifies volunteer sign-ups with social sharing, custom registration forms, and sortable reports.
• 360MatchPro: Focuses on volunteer grant eligibility with searchable employer databases, embeddable tools, and detailed corporate program insights.
• SignUpGenius: Provides customizable sign-up pages, auto-generated notifications, and a Premium plan.
• Civic Champs: Offers mobile check-ins, group onboarding, and filtered reporting to enhance volunteer engagement and ROI.
• VolunteerMark: Features volunteer imports, skill-based assignments, and self-updating profiles with plans.
• Volgistics: Delivers customizable solutions with self-scheduling, background checks, and secure site-level access for volunteer data.
• Rosterfy: Includes gamified recognition, workflow automation, and skills-based training modules for streamlined volunteer management.
• Submittable: Empowers corporate volunteers with dashboards, automated communications, and tools for creating team volunteer opportunities.
• Mobilize: Enhances engagement with post-event feedback, grassroots opportunity management, and real-time reporting.
• BetterImpact: Optimizes volunteer management with advanced search, recurring scheduling, and robust data security features.
• SignUp.com: Simplifies volunteer sign-ups with mobile-friendly pages, waitlist notifications, and a free starter plan.
• Golden: Manages large volunteer groups with location-based apps, CRM integrations, and localized compliance tools.
• FestiVOL: Designed for event organizers with customizable applications, scheduling algorithms, and onsite management tools.
• POINT: Streamlines volunteer activities with website integration, shift management, and automated time tracking, starting with a free plan.
• Plan Hero: Simplifies scheduling with auto-reminders, color-coded roles, and personal calendar sync for volunteers.
• Helper Helper: Offers segmented opportunities, comprehensive reports, and personalized support for volunteer coordination.

3.) Personalized Communication:

Tailoring communication to individual volunteers can make them feel valued and appreciated. Regular updates on the impact of their contributions and personalized thank-you messages can strengthen their connection to the organization.

4.) Training and Development:

Providing training and development opportunities can help volunteers feel more competent and confident in their roles. This investment in their growth can lead to higher retention rates and more effective volunteer work.

5.) Recognition and Rewards:

Recognizing and rewarding volunteers for their efforts is crucial. This can be done through awards, public acknowledgments, or small tokens of appreciation. Celebrating their contributions fosters a sense of community and motivates continued involvement.

6.) Understanding Volunteer Demographics:

According to Double the Donation, most U.S.-based volunteers are between the ages of 35 and 44. Recognizing this demographic can help nonprofits tailor their recruitment and engagement strategies to better meet the needs and preferences of their volunteers.

7.) Corporate Volunteer Programs:

Many companies are increasingly encouraging their employees to volunteer, often offering volunteer grants and paid volunteer time off. Nonprofits can tap into these corporate programs to expand their volunteer base and benefit from additional resources.

8.) Highlighting Volunteer Benefits:

Regular volunteerism offers numerous benefits, including personal fulfillment, professional skill development, and even health benefits. Communicating these advantages can attract more volunteers and encourage long-term commitment.

By implementing these strategies, nonprofits can create a more engaging and supportive environment for their volunteers, ensuring a sustainable and impactful volunteer program in 2025.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Tania Quigley, CPA

Partner

As we move into 2025, nonprofit organizations must stay ahead of IT and cybersecurity trends to protect their data, streamline operations, and enhance their impact. Here are key trends to watch:

1.) Increased Adoption of Cloud Computing

Cloud computing continues to be a game-changer for nonprofits. By moving to the cloud, organizations can reduce costs, improve data accessibility, and enhance collaboration. Cloud-based solutions offer scalability, allowing nonprofits to adjust their resources based on demand. This flexibility is crucial for managing donor databases, financial records, and program data efficiently.

2.) Enhanced Cybersecurity Measures

Cybersecurity remains a top priority as cyber threats become more sophisticated. Nonprofits are increasingly targeted by cybercriminals due to their often limited security resources. In 2025, nonprofits must invest in robust cybersecurity measures, including:

• Multi-Factor Authentication (MFA): Adding an extra layer of security to protect sensitive information.
• Regular Security Audits: Conducting frequent audits to identify and address vulnerabilities.
• Employee Training: Educating staff on best practices for cybersecurity to prevent phishing attacks and other threats.
• Data Encryption: Ensuring that all sensitive data is encrypted both in transit and at rest.

Third-Party Risk Management Needs Will Drive Changes to Compliance Programs: According to Tech Republic, third-party risk management, supply chain risk management, and increased oversight and regulatory requirements will drive the need for companies to focus on and mature their governance, risk, and compliance programs. Organizations will likely shift toward proactive ways of assessing and monitoring supply chains, leveraging zero-trust architectures to verify at stages of access.

3.) Artificial Intelligence and Automation

AI and automation are transforming nonprofit operations. AI tools can analyze large datasets to provide insights into donor behavior, predict fundraising outcomes, and personalize communication. Automation can streamline repetitive tasks, such as data entry and donor follow-ups, freeing up staff to focus on strategic initiatives. AI-powered chatbots can also enhance donor engagement by providing instant responses to inquiries.

4.) Data Privacy and Compliance

With increasing data privacy regulations, nonprofits must ensure compliance to protect donor information and maintain trust. Implementing data protection measures and staying updated on regulations like General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) is essential. Nonprofits should also develop clear data privacy policies and communicate them to donors and stakeholders.

Cybersecurity and Data Responsibility: The adoption of CCPA and GDPR in recent years has put increased attention on data responsibility practices. Only 39% of Gen Z say they trust organizations to keep their data safe, the lowest rate of any generation. Knowing this trend will only continue, now is the time to shore up your data governance policies. Consider implementing practices like single sign-on (SSO) and email list hygiene, as well as other responsible data habits. It’s also extremely important to have a dedicated page or blog on your website that explains your data governance or cookie policy.

5.) Integration of Digital Payment Solutions

Digital payment solutions are becoming more prevalent, making it easier for donors to contribute. Nonprofits should integrate various digital payment options, including mobile wallets, online payment gateways, and cryptocurrency donations. This not only enhances the donor experience but also increases the likelihood of receiving donations.

6.) Remote Work and Collaboration Tools

The shift to remote work has accelerated the adoption of collaboration tools. Nonprofits are leveraging platforms like Microsoft Teams, Slack, and Zoom to facilitate communication and project management. These tools enable teams to work efficiently from anywhere, ensuring continuity of operations and engagement with stakeholders.

7.) Cyber Insurance

As cyber threats grow, more nonprofits are investing in cyber insurance to mitigate the financial impact of data breaches and cyberattacks. Cyber insurance can cover costs related to data recovery, legal fees, and notification expenses. It provides a safety net, allowing nonprofits to recover more quickly from cyber incidents.

8.) Blockchain Technology

Blockchain technology is gaining traction in the nonprofit sector for its potential to enhance transparency and trust. By using blockchain, nonprofits can create immutable records of donations, ensuring that funds are used as intended. This technology can also streamline grant management and reduce administrative costs.

9.) IT Infrastructure Modernization

Modernizing IT infrastructure is crucial for nonprofits to stay competitive and efficient. This includes upgrading hardware, adopting new software solutions, and ensuring that IT systems are scalable and secure. Investing in modern IT infrastructure can improve overall organizational performance and support long-term growth.

10.) Focus on Digital Inclusion

Digital inclusion initiatives aim to bridge the digital divide by providing access to technology and digital literacy training. Nonprofits are increasingly focusing on digital inclusion to ensure that underserved communities can benefit from their programs and services. This includes providing devices, internet access, and training to enhance digital skills.

11.) Macs Will Be Increasingly Targeted by Cybercriminals

Experts predict that Macs will become even more of a target for cybercriminals in 2025. Rising threats, particularly from stealer malware designed to collect sensitive data, are expected to increase. Nonprofits using macOS should be vigilant and implement robust security measures to protect their systems.

12.) Security Teams Will Take Over Identity and Access Management

In 2025, responsibility for identity and access management within companies is expected to shift from IT departments to security teams. As identity-based attacks escalate, security professionals will be needed to eliminate potential entry points and enhance overall security.

13.) Employees Will Be Targeted with AI Scam Tools

AI-enhanced malicious attacks are predicted to continue into 2025. These attacks, including business email compromise and voice impersonation scams, will target employees, especially those in finance, HR, and IT roles. Nonprofits must educate their staff on recognizing and responding to such threats.

By staying informed about these IT and cybersecurity trends, nonprofits can protect their data, improve operational efficiency, and enhance their impact in 2025 and beyond.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Albert Borghese, CPA

Partner

An active strategic plan is a critical puzzle piece for the success of a nonprofit organization. This is the document that should include guideposts for your organization’s future, a foundation for alignment, and a clear picture of your priority areas. Many organizations have been functioning in crisis management over the last 5 years or so. Nonprofits should use 2025 as the year to once again think strategically.

Here are the some of the most significant challenges – and areas to be particularly cognizant of in planning for 2025:

💪 Capacity & Resource Constraints – Stating the obvious here…but nonprofits often operate with limited financial, human, and time resources, making it difficult to dedicate sufficient effort to robust planning processes. This makes the need to prioritize and define your mission pillars even more critical.
💚 Mission Creep – Balancing innovation with the core mission can be challenging. External funding pressures or shifting community needs may tempt organizations to pursue opportunities outside their original mission.
📊 Access to Data & Evidence – Limited access to accurate data for decision-making can hinder the development of realistic and impactful strategic goals.
🤝 Stakeholder Alignment – Engaging diverse stakeholders (e.g., board members, staff, funders, and the folks you serve) is essential, but it can also lead to conflicting priorities or visions for the future.
☑️ Implementation & Accountability – Translating a strategic plan into actionable steps often falters due to unclear roles, lack of accountability, or difficulty in monitoring progress.
😨 Rapidly Changing External Environment – Think: The “Threats” in your SWOT Analysis – the external factors that are out of your control; the most daunting. These are typically the economic, political, and social shifts that can wreak havoc on your strategic plan.

Addressing these challenges requires intentionality, ongoing communication, and a commitment to creating a culture of continuous improvement. One of my favorite nonprofit leaders likes to say, “Culture eats strategy for breakfast!” But the good news is there are reliable best practices to stem the tide of challenges – I’ll leave you with a few:

• Engage Stakeholders: Involve all relevant parties in strategic planning to build buy-in and ensure diverse perspectives.
• Prioritize Capacity Building: Invest in staff and board training, including leadership and fundraising skills.
• Use Data-Driven Approaches: Leverage technology and partnerships to access the data necessary for informed decision-making.
• Foster Board Accountability: Set clear expectations and conduct regular assessments (and self-assessments!) of board performance.
• Plan for Flexibility: Design strategic plans with adaptability and monitoring practices in mind, allowing for adjustments in response to external changes.
• Strengthen Recruitment Pipelines: Develop targeted recruitment strategies to find board members who align with the organization’s mission and needs.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

In 2025, nonprofit organizations face unique challenges and opportunities in managing their workforce. Here are key trends and strategies to help navigate hiring, compensation, succession planning, and employee retention:

Hiring Trends

Strategic Talent Acquisition:

Recruitment efforts should align with organizational goals and culture to ensure new hires contribute meaningfully to the mission. Identifying candidates with the right skills and attributes that match long-term objectives is critical.

Emphasis on Diversity, Equity, and Inclusion (DEI):

Building diverse and inclusive teams is essential to fostering broader perspectives and better representing the communities served. Organizations implementing DEI initiatives are more likely to attract a wider range of candidates and enhance workplace culture.

Remote Work and Flexibility:

Hybrid and remote work options have become standard expectations. Nonprofits that embrace these models can attract mission-driven professionals who prioritize work-life balance. Flexible arrangements also allow organizations to expand their talent pool, particularly in underserved areas, while boosting employee satisfaction.

Skills-Based Hiring:

Hiring based on transferable skills rather than traditional qualifications can help fill roles with individuals who bring diverse experiences and potential. This approach broadens the pool of qualified candidates.

Technology Adoption:

The use of AI in recruitment is revolutionizing the hiring process. Nonprofits can leverage AI-powered tools to automate resume screening, streamline interview scheduling, and enhance candidate engagement. These technologies save time, reduce costs, and improve efficiency in finding top talent, ensuring resources are directed toward the mission.

Recruitment and Onboarding Best Practices:

Hiring and onboarding practices set the tone for employee relationships. By creating welcoming, inclusive, and enriching experiences, nonprofits can enhance engagement and retention from the start. This includes eliminating bias, aligning recruitment with organizational values, fostering connections through mentorship, and providing relevant training for new hires.

Compensation Trends

Competitive Salaries:

Offering market-aligned salaries for mission-critical roles is essential to attract and retain top professionals. Regularly reviewing compensation to stay competitive can ensure long-term workforce stability.

Comprehensive Benefits:

Total rewards packages, including health insurance, retirement plans, and wellness initiatives, contribute to employee satisfaction and loyalty. Professional development opportunities and work-life balance programs further enhance value.

Performance-Based Incentives:

Variable compensation models tied to organizational objectives can motivate employees and align their efforts with broader goals.

Transparent Practices:

Compensation transparency fosters trust and employee satisfaction. Clear communication about how salaries are determined and ensuring fairness in pay structures are key to maintaining morale.

Succession Planning

Proactive Planning:

With only 27% of nonprofits having documented succession plans, there is a significant opportunity to improve operational stability. Identifying potential leaders and equipping them with training and development ensures smooth transitions when leadership changes occur.

Leadership Development:

Investing in leadership programs prepares internal candidates for advanced roles, promoting continuity and growth within the organization.

Regular Review and Open Dialogue:

Updating succession plans regularly to reflect organizational changes and encouraging open conversations about leadership transitions build stability and resilience.

Employee Retention

Addressing Staffing Challenges:

Adjusting budgets and offering competitive compensation packages, including signing or retention bonuses, can help mitigate staffing shortages. Highlighting benefits and flexible schedules further strengthens retention efforts.

Preventing Burnout:

Supporting work-life balance, mental health resources, and stress management initiatives are vital to maintaining a healthy workforce. Encouraging regular breaks and fostering a supportive environment can help reduce burnout.

Investing in Development:

Providing employees with mentoring, training, and opportunities for career advancement keeps them engaged and motivated. Employees who see a clear path for growth within the organization are more likely to remain committed.

Emerging Workforce Trends

Employee Well-being:

Prioritizing mental health and wellness initiatives, such as offering mental health days and counseling, supports a productive and engaged workforce.

Data-Driven HR Decisions:

Utilizing analytics to identify trends in turnover, engagement, and recruitment allows nonprofits to make informed adjustments and optimize workforce strategies.

Upskilling and Reskilling:

By addressing skill gaps internally through partnerships with educational institutions or online learning platforms, nonprofits can build resilient teams while reducing reliance on external hiring.

Engagement and Recognition:

A culture of recognition that celebrates achievements and aligns work with organizational missions can reignite passion and commitment among employees.

The Strategic Role of HR:

HR leaders in nonprofits are increasingly stepping into strategic roles, championing DEI initiatives, driving innovation, and advocating for employee well-being. Aligning people strategies with organizational goals ensures a sustainable and engaged workforce.

By staying attuned to these trends and implementing strategic workforce practices, nonprofits can attract, develop, and retain top talent, ensuring their mission’s success in 2025 and beyond.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Lauren Grandinetti, CPA

Manager

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Matthew Burke, CPA

Partner

As we look ahead to 2025, the economic landscape is poised for significant changes that will undoubtedly affect the nonprofit sector. Understanding these economic predictions can help nonprofits prepare and adapt their strategies to continue thriving in a dynamic environment.

Economic Predictions for 2025

1.) Steady GDP Growth

The U.S. economy is expected to experience steady growth in 2025. Goldman Sachs Research forecasts a GDP growth rate of 2.5% for the year^[1]. This growth is driven by strong consumer spending, a resilient labor market, and policy changes that are expected to boost economic activity. While this is a positive outlook, nonprofits should be aware that economic growth can also lead to increased competition for donor dollars as more organizations vie for contributions.

2.) Inflation and Interest Rates

Inflation is predicted to stabilize around 2.2% by the end of 2025^[2]. The Federal Reserve is expected to maintain a federal funds rate of approximately 3.5%, with a 10-year yield of 4.5%^[2]. While lower inflation can ease some financial pressures on households, nonprofits may still face challenges as donors adjust their giving in response to economic conditions. Additionally, stable interest rates can impact investment income for endowments and other financial assets held by nonprofits.

3.) Labor Market Dynamics

The unemployment rate is projected to be around 4.2% in 2025^[2]. A strong labor market can lead to increased disposable income, potentially boosting charitable donations. However, nonprofits may also face higher operational costs due to wage pressures and competition for skilled workers. It’s crucial for nonprofits to balance these factors to maintain financial stability.

4.) Policy Changes and Economic Impact

Policy changes, including potential tax reforms and tariff adjustments, are expected to influence the economy. For instance, the extension of the 2017 tax cuts and new tariffs on imports could have mixed effects on economic growth^[1]. Nonprofits should stay informed about policy developments as these can affect both their funding sources and the economic environment in which they operate.

Impact on Nonprofits

1.) Donor Behavior and Giving Patterns

Economic stability and growth can positively influence donor behavior, leading to increased charitable contributions. However, nonprofits must be prepared for fluctuations in giving patterns due to economic uncertainties. Building strong relationships with donors and demonstrating the impact of their contributions will be key to maintaining support.

2.) Operational Costs and Resource Allocation

With a strong labor market, nonprofits may face higher operational costs, particularly in terms of wages and benefits. Efficient resource allocation and cost management will be essential to ensure that funds are used effectively to support their missions. Investing in technology and automation can help streamline operations and reduce costs.

3.) Funding and Investment Strategies

Stable interest rates and economic growth provide opportunities for nonprofits to review and optimize their funding and investment strategies. Diversifying income streams, such as exploring new fundraising avenues and enhancing grant applications, can help mitigate financial risks. Additionally, prudent investment management can ensure the sustainability of endowments and reserves.

4.) Community Engagement and Support

Nonprofits will need to focus on community-centric fundraising and engagement strategies. Building and nurturing a sense of community through local events, supporter circles, and personalized communication can foster long-term relationships with donors. Emphasizing transparency and impact reporting will also be crucial in gaining and retaining donor trust.

Conclusion

The economic predictions for 2025 present both opportunities and challenges for nonprofits. By staying informed about economic trends and adapting their strategies accordingly, nonprofits can navigate the changing landscape and continue to make a positive impact. Embracing innovation, maintaining strong donor relationships, and focusing on efficient resource management will be key to thriving in the year ahead.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Kenneth R. Cerini, CPA, CFP, FABFA

Managing Partner

Ken is the Managing Partner of Cerini & Associates, LLP and is the executive responsible for the administration of our not-for-profit and educational provider practice groups. In addition to his extensive audit experience, Ken has been directly involved in providing consulting services for nonprofits and educational facilities of all sizes throughout New York State in such areas as cost reporting, financial analysis, Medicaid compliance, government audit representation, rate maximization, board training, budgeting and forecasting, and more.

2025 is anticipated to be an interesting year for the nonprofit sector. From a service delivery perspective, the significant inflation we have experienced over the last 3 years (between 16 and 20%) has put more individuals and families at risk. While inflation levels in the United States are anticipated to stabilize at between 2% and 2.5% during 2025, the demand for services will remain high during 2025, putting continued strain on an already stretched nonprofit sector. Government funding is anticipated to decline as NY State is looking at potential budget shortfalls over the next 3 years of $1 billion, $6.2 billion, and $7.1 billion, respectively. In addition, government payment slow-downs experienced over the last few years are not anticipated to get better any time soon.

As we all know, 2024 saw a change in the president, with the Trump administration stepping in for its second go-around in 2025. The election was heated and continued the trend we have had over the last decade of divisiveness across the country. This creates a tremendous level of stress and mental health issues which will need to be addressed. In addition, the Trump administration will bring with it certain initiatives that will impact the nonprofit sector. Where they ultimately layout is uncertain, but if he follows through on his campaign policies expect increased issues surrounding the environment, immigration issues, and overall funding for the sector.

The stock market’s strong performance during 2024 and anticipated declines in interest rates bode well for 2025 charitable contributions, with expectations of increases in contributions of approximately 3.9% over 2024 levels. We have seen a shift in contributions over the last decade with less people contributing to nonprofits, but larger gifts coming from more wealthy Americans. As the gap between the haves and the have nots continues to widen, we expect that trend to continue into the foreseeable future. This coupled with the largest level of wealth transference this country has ever seen (it is anticipated that $11 to $12 trillion dollars will pass from the silent generation and baby boomers over the next 20+ years to nonprofits) means that nonprofits need to increase relationships with affluent donors and make sure you develop relationships with the next generation.

Unfortunately, competition for discretionary resources is also expected to rise in 2025, so nonprofits will need to step up their communication game with donors. This means better linkage of donor funds to program accomplishments and impact, a better understanding of why donors give to your organization with more targeted messaging, an increased use of videos which provide enhanced storytelling, and more creative fundraising campaigns that include more experience driven “events.” Nonprofits need to remember that fundraising is a process. People who volunteer for an organization are more likely to give. Less than 50% of donors give a second time to an organization, so you need to work at developing the relationship to give them a reason to stay engaged. Find ways to more effectively collaborate with your donors so there is mutual benefit. Without a social return on investment why should people give?

Interest rates are expected to drop during 2025, but not as much as originally hoped. The Fed lending rate is anticipated to finish 2025 at around 4%, only about a ¼% drop from current rates. This will both keep 30-year mortgage rates in the 6.3/6.4 range for the year and also slow down economic growth in 2025. As a result, unemployment rates are expected to be about 3.9% at the end of 2025 verse about 4.2% (approximately 4.4% in New York State) at the end of 2024. Unemployment rates for black workers increased to 6.4% at the end of 2024, more than 50% higher than the national average. This continues to be an issue. With overall unemployment considered to be on the low end, this will continue to make it harder for nonprofit organizations to attract and retain staff. The minimum wage for NY City, Long Island, and Westchester increased to $16.50 ($15.50 for the rest of the State) per hour effective January 1, 2025. However, for many nonprofits looking for direct service providers, rates have already creeped up to $20 per hour or more. Nonprofits are going to have to look towards more flexible work environments or work schedules, increased or unique benefits (daycare, mental health, education), and clear and defined growth plans for staff.

With the projected increase in demand for services and the difficulty in bringing in staff, nonprofits will need to be diligent in finding ways to streamline operations. One way nonprofits can do this is by embracing technology. Finding ways to more effectively integrate various software applications, utilize AI to handle repetitive and time-consuming tasks, maximize the use of cloud computing, and utilize a CRM system to centralize data automatically. And while technology can be a tremendous resource for the sector, it can also add a tremendous level of risk, as cyber crimes are on the rise. Per a report from the Nonprofit Tech for Good, approximately 27% of nonprofits worldwide have been subject to cyber attacks. Nonprofits are particularly vulnerable to cyberattacks due to sensitive donor and patient information, limited cybersecurity expertise, outdated security protocols, lack of personnel and resources, and dependence on volunteers and third-party vendors.

The New Year’s Resolutions for 2025 for nonprofit organizations is:

• Invest in leadership and talent management. Succession of Board members and staff need to be part of the on-going process as does management training.
• Be more strategic in their thought process. Take the time during 2025 to focus on strategic planning.
• Find ways to enhance collaboration at all levels, with donors, funders, government, and other nonprofit organizations. This will help to enhance organization’s ability to provide enhanced services and develop more meaningful relationships.
• Focus on ways to increase financial sustainability through enhanced discretionary funding, social enterprises, and diversification of funding streams.
• Increase the use of technology and innovation to streamline operations and provide advancement for existing employees.

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This article was featured in our 2025 Nonprofit Trends Guide. View the updated guide and more related topics here!

Kenneth R. Cerini, CPA, CFP, FABFA

Managing Partner

Ken is the Managing Partner of Cerini & Associates, LLP and is the executive responsible for the administration of our not-for-profit and educational provider practice groups. In addition to his extensive audit experience, Ken has been directly involved in providing consulting services for nonprofits and educational facilities of all sizes throughout New York State in such areas as cost reporting, financial analysis, Medicaid compliance, government audit representation, rate maximization, board training, budgeting and forecasting, and more.