Fundraising Talks – February 2025

News and updates from the USM Office of Advancement Research

Letter from the Director

Welcome to the February edition of Fundraising Talks! Higher education professionals are no strangers to overcoming obstacles and navigating uncertainties in a challenging environment, all while staying focused on delivering results and achieving goals. Recent federal policy changes and executive orders are impacting the work of many in higher education and other industries. As we witness these changes at the federal level, we should work past any conflicting views and advocate for the continued importance of higher education in shaping leaders who will help solve the challenges ahead. Philanthropy and fundraising will become even more critical as we navigate new federal funding opportunities and mitigate risks that may affect students, faculty, and staff.

Staying alert to policy changes and adopting more effective donor engagement strategies will be essential as we move forward. Just a couple of weeks ago, the Johnson Center released the ninth edition of its annual report, “Eleven Trends for Philanthropy.” This report highlights several key trends that resonate with some of our recent observations:

1. Collective giving – including giving circles and crowdfunding – is projected to double in the next five years. Between 2017 and 2023, nearly 4,000 collective giving groups mobilized 370,000 individuals to donate over $3.1 billion, showing a 140 percent growth in both participation and donations.
2. Increased lobbying activities – Over the past 30 years, the nonprofit sector has grown, and strong advocates have pushed for greater influence. Key drivers, including the 2017 Tax Cuts and Jobs Act, could lead to a surge in future nonprofit lobbying efforts.
3. Foundations opting for planned lifespans – More foundations are choosing to adopt spend-down strategies, focusing on a clear end date for their work.
4. The 2025 tax “cliff” – The expiration of provisions from the 2017 Tax Cuts and Jobs Act could bring significant changes to philanthropy and the nonprofit sector. This, combined with declining trust in institutions and shrinking donor bases, may create a “perfect storm.”
5. America’s aging population – By 2034, adults over 65 (projected to reach 77 million) will outnumber children under 18 (76.5 million) for the first time in U.S. history. This demographic shift could lead to increased philanthropic efforts to address the needs of older adults.
6. Growth of giving days like “GivingTuesday” – These events are making a significant impact. Nonprofits will continue to use creative and effective methods to ensure their success.
7. Strategic volunteer engagement – Nonprofits will need to invest in volunteer engagement, research, and capacity-building efforts that meet the needs of new generations.
8. Efforts to address the health professional shortage – Philanthropic initiatives to provide tuition-free education and services for the aging population will become more prevalent.
9. Social justice philanthropy – Nonprofits will continue to navigate the evolution of social justice issues in an increasingly polarized environment.
10. Equitable democracy initiatives – The drive to promote an equitable and sustainable democracy is gaining momentum.
11. Nonprofit workforce shortage – The ongoing shortage of nonprofit workers will push organizations to prioritize employee well-being, making it a strategic focus in 2025.

Despite these ongoing changes, we must continue inspiring donors to support our organizations’ missions and make a meaningful impact. This will require a deeper understanding of donor motivations, behaviors, and building trust in donor relationships, helping them prioritize your organization when making philanthropic decisions.

As always, feel free to reach out to us with any questions, comments, or requests for assistance with fundraising research!

Best Regards,
Sapna and USM Advancement Research Team
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