In 2024, US nonprofits experienced a 3.5% increase in total fundraising dollars despite a 4.5% decrease in the number of donors. This trend of fewer donors persists, prompting concerns among nonprofit leaders about grassroots fundraising's longevity. The decline in donor retention rates by 2.6% further exacerbates this issue, emphasizing the need for nonprofits to enhance their outreach to small donors. The reliance on larger donations signals a potential risk for long-term funding sustainability, especially as new donor numbers continue to fall.
The continued decline in small donor participation, despite an increase in overall dollars, highlights the pressing need for renewed strategic focus.
Our Q4 FEP data emphasizes the growing reliance on fewer, larger gifts, a trend that underscores the urgency of revitalizing small donor engagement to sustain long-term sector health.
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