Fundraising Talks – January 2025

News and updates from the USM Office of Advancement Research

Letter from the Director

Happy New Year and welcome to Fundraising Talks for January!

As we kick off 2025, we’re eager to see what opportunities the year holds for advancing higher education philanthropy and supporting the fundraising community in achieving even greater success. Higher education professionals know that the new political administration may implement policy changes in the coming months, which could impact the sector. To successfully navigate potential challenges, development professionals must stay alert to the trends shaping the philanthropic landscape.

The Fundraising Effectiveness Project (FEP) recently shared its Q3 2024 results, revealing a slight increase in dollars raised but a decline in donor participation. This drop is mainly due to lower engagement from smaller donors (under $100) and a decrease in the acquisition of new donors. These findings underscore the need for nonprofits to invest in tools and strategies to better engage smaller donors and retain both new and existing supporters. In its article The Year Ahead in Higher Ed: 5 Trends to Watch in 2025, Forbes highlights key trends that may shape the higher education sector. Notably, artificial intelligence (AI) is expected to play a larger role in the infrastructure of colleges and universities. State legislatures may attempt to limit faculty involvement in shared governance, while institutions could face budget cuts due to low enrollment and ongoing economic uncertainty. Additionally, 2025 could see reforms in college athletics.

While keeping the broader political and economic landscape in mind, fundraisers should also stay attuned to the trends that will influence fundraising strategies in 2025. Each year, it’s important to apply lessons learned from the past to refine fundraising efforts. As mentioned earlier, the decline in lower-level donors is a significant issue that must be addressed in 2025. The Chronicle of Philanthropy outlines several additional trends that fundraisers should keep an eye on, including:

1. New tax laws and legislation that may impact charitable giving, such as requirements for payouts from donor-advised funds.
2. The growing importance of AI tools, and the need to use them while maintaining donor trust.
3. The rise of donor-advised funds, though challenges may arise as these donors continue to give anonymously.
4. Finding ways to buffer against financial pressures caused by shifts in nonprofit funding.

As these trends unfold, higher education fundraising will continue to evolve. Politics, technology, and donor behaviors will all play a significant role in shaping the fundraising landscape. Development professionals should remain vigilant, ready to reassess and adapt their strategies as we move through the New Year.

I hope you’re staying warm and enjoying the freshness of the recent snowfall. As always, feel free to reach out to us with any questions, comments, or for assistance with fundraising research.

Best Regards,
Sapna and USM Advancement Research Team
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