Fundraising in Flux: Key Trends from the FEP Q4 2024 Report

The Fundraising Effectiveness Project (FEP) Q4 2024 report paints a complex picture of the nonprofit fundraising landscape. While the sector saw a 3.5% increase in total dollars raised compared to 2023, this growth was largely driven by high-dollar donors, masking deeper challenges in donor acquisition and retention.

The Hidden Struggles Behind the Growth

Despite the uptick in total giving, the report reveals troubling trends:

• Donor counts declined by 4.5% year-over-year.
• Donor retention dropped by 2.6%, continuing a multi-year downward trend.
• Small-dollar donors (under $100)—who make up over half of all donors—declined by 8.8%.

These figures underscore a growing reliance on fewer, wealthier donors, while grassroots support continues to erode.

What This Means for Fundraisers in 2025 and beyond

1. Double Down on Donor Retention

Retention is more cost-effective than acquisition, yet it’s slipping. Fundraisers should:

• Implement personalized stewardship plans.
• Use data-driven segmentation to tailor communications.
• Focus on donor impact storytelling to reinforce value and connection.

2. Upgrade Loyal Donors

With acquisition costs rising and new donor numbers falling, upgrading existing donors is a high-ROI strategy:

• Cultivate small dollar donors to give more frequently through monthly giving and other special fundraising moments (e.g., matching gifts, membership drives, annual funds).
• Identify mid-level donors with potential to give more.
• Offer exclusive engagement opportunities (e.g., behind-the-scenes updates, VIP events).
• Use predictive analytics to spot upgrade-ready donors.

3. Rebuild the Grassroots Base

While major donors are crucial, over-reliance is risky. To rebuild the base:

• Launch micro-campaigns that emphasize community impact.
• Leverage peer-to-peer fundraising and social proof.
• Optimize for mobile and recurring giving to reduce friction.

4. Diversify Fundraising Channels

The decline in small donors suggests traditional channels may be underperforming. That’s why it is important that fundraisers diversify their revenue portfolios to help them be able to weather volatility in the nonprofit fundraising environment by:

• Investing in digital-first strategies (email, social, SMS).
• Exploring non-cash giving (DAFs, crypto, stock donations).
• Using AI and automation to scale personalized outreach.
• Expanding legacy giving cultivations.

The Big Picture: Sustainability Through Balance

The FEP Q4 2024 data is a wake-up call. While major donors are keeping the lights on, the long-term health of the sector depends on broad-based support. Fundraisers must balance their portfolios—nurturing major donors while revitalizing grassroots engagement.

Moving forward, the most resilient organizations will be those that:

• Adapt quickly to data insights,
• Invest in donor relationships, and
• Innovate boldly in their fundraising approaches.

For more tips and advice on fundraising in these turbulent times, please contact one of our knowledgeable experts!