The last year has been a tough one for fundraisers, and the charity industry as a whole. Donor numbers are falling, the cost-of-living crisis keeps squeezing, and charities are under pressure to deliver more with less.
It’s not all doom & gloom, though – new approaches, tech advancements and partnerships are opening up fresh opportunities.
Here’s a look at what’s been happening in fundraising over the past 12 months, and where we think things are heading in the year to come.
What’s happened over the past 12 months
Fewer people giving, but donations holding up
CAF’s UK Giving Report 2025 shows that around 55% of people donated in the past year (down from 65% in 2019). But total giving is still significant at around £15.4 billion. This suggests those who are giving, are giving more but more people are being drawn into a position where they can;t afford to give.
This carries through to sponsorship as well – only 21% of people sponsored someone for charity in 2024, down more than 43% from 2016 (37% had sponsored someone).
The cost-of-living crunch
Charities are getting hit by the cost of living with a double-whammy – rising demand for services at the same time as rising running costs. It’s not a recipe for a thriving sector – it looks more like one for disaster.
Digital fundraising and data on the rise
From social media campaigns to online giving platforms, digital continues to grow. Charities are also getting smarter with data – segmenting donors, tracking engagement and exploring AI tools to predict giving behaviour and then create campaigns using that data.
Focus on loyalty and regular giving
Winning new supporters is getting tougher, so charities are doubling down on regular giving and donor retention. This is becoming especially important when you consider the earlier point about those who can give, giving more. Retention and utilisation of your current donors is only going to become more and more important.
Events bouncing back in new forms
In-person fundraising events are back, but many are now hybrid or digital-first. Creativity is key, from virtual runs to online raffles.
Corporate partnerships stepping up
More charities are tapping into corporate fundraising, with businesses looking to align their ESG goals with causes. There a big pots of time and money up for grabs here.
What to watch in the next 12 months
Personalisation powered by data and AI
Expect to see charities investing in smarter, more personalised donor journeys, using data to improve retention and grow value. If you aren’t already exploring the capabilities and use cases for AI, now is the time to start.
Subscription style giving
We’ll likely see more charities offering regular giving with added benefits – a “membership” feel that gives donors a sense of belonging, and added value.
Hybrid fundraising will continue to grow
The best of both worlds: digital reach plus in-person connection. Blended events and online campaigns will keep evolving and become more and more prominent.
Transparency and impact front and centre
We always bang this particular drum – transparency and impact are key requirements in driving trust (a key part of the fundraising formula) Donors want proof their money makes a difference. Charities still (inexplicably) get a bad rap when it comes to trust – people tar the whole sector with the same brush of those very few who abuse their positions. Charities will need to double down on clear, compelling storytelling and impact reporting.
Legacy giving growing
As people think longer-term, legacy and in-memory giving is becoming an important income stream for charities that nurture trust and relationships.
Corporate and community partnerships
From big business to local groups, partnerships will be a key way to unlock resources beyond individual donations. Corporates remain a huge potential source of funds, other donations and volunteering time.
So what should charities do now?
- Invest in regular giving – make it easy, attractive and rewarding for supporters to give monthly.
- Experiment with hybrid formats – online and offline fundraising don’t need to compete, they can complement each other.
- Tell impact stories clearly – donors will be more motivated if they see tangible change, which will build trust
- Build partnerships – think beyond just individuals; there are opportunities in corporate, community and digital spaces.
- Keep adapting – fundraising is shifting quickly, so staying agile will be vital.
- Explore AI – We’re not talking about writing social posts and making copy a bit snappier – how can AI enhance and improve your charity offering all around – improving processes, simplifying and automating tasks, answering questions.
Final thoughts
Fundraising will always be challenging, never more clearly than right now – but it’s also an area full of creativity, innovation and opportunity.
By focusing on loyalty, storytelling and smart use of data, charities can ride the storm of 2025 and come out stronger.
Sources & further reading
If you want to know more, or get more info – these articles are all really useful and are where a lot of the stats and insights are from for this piece;
https://www.cafonline.org/insights/research/uk-giving-report
https://charitydigital.org.uk/topics/fundraising-facts-you-need-to-know-in-2025-11052
https://www.ncvo.org.uk/news-and-insights/news-index/the-road-ahead-2025/challenges
https://www.donorcloud.co.uk/blog/8-fundraising-trends-in-the-uk-for-2025/?utm_source=chatgpt.com
