5 Critical Nonprofit Trends for 2025 (+18 Ways They Should Inform Your Strategy) 

Let’s be real—the stakes have never been higher for the nonprofit sector. Trust in institutions is weak, the funding outlook is cloudy, and nobody’s really sure how the next several years are going to play out. 

But if you think that those high stakes mean that it’s time to play it safe, you’re wrong. And at Neon One, we believe this leadership happens best when we collaborate with our clients to shape a path forward that looks different from the trends we’re starting to see sector-wide.

As you look at the trends we’re starting to see sector-wide as we head into 2025, it quickly becomes clear that the way nonprofits operate, engage, and inspire is evolving rapidly. This isn’t about responding to the status quo—it’s about rethinking it. 

The five nonprofit sector trends we’re exploring in this article aren’t just observations; they’re opportunities to build something better together. That’s why we’re going to do more than simply highlight what’s happening—we’ll give you actionable insights and reflective questions to guide your strategy. 

Let’s dive into what’s next—and how we can help your nonprofit lead the way.

• Trend #1: The Rise of Values-Informed Fundraising
• Trend #2: Integrated Data is Revolutionizing Donor Relationships
• Trend #3: Increasing Challenges in Grants and Impact Reporting
• Trend #4: Mid-Level Donors Are More Important Than Ever
• Trend #5: Reimagining Events as Community Gatherings

Trend #1: The Rise of Values-Informed Fundraising

In today’s nonprofit landscape, donors are looking for more than just a cause to support—they’re searching for organizations that reflect and align with their core identity and values. 

Research from the Institute for Sustainable Philanthropy demonstrates that donors whose giving aligns with their core identity become more engaged, give more frequently, and are more likely to view their contributions as meaningful.

Unlike relationship-focused approaches, which prioritize individual connections, values-informed fundraising focuses on creating authentic, mission-driven spaces where donors see their beliefs and aspirations come to life. 

Tools like Valuegraphics, which identify shared values across donor demographics, enable nonprofits to move beyond transactional interactions and cultivate deeper, more meaningful connections rooted in a collective sense of purpose.

This isn’t about focusing solely on organizational messaging—it’s about aligning your mission with your supporters’ most deeply held principle. Here are four ways you can do that: 

1. Craft Experiences That Reflect Shared Values

People connect when they see their values in action. 

Host events or activities that allow donors to actively engage with your mission in ways that reinforce shared beliefs.

To amplify the impact of these experiences, frame them around the donor’s role in creating change. 

2. Use Stories That Highlight Values

Values come to life through storytelling. Share narratives that reflect the shared beliefs of your donor community. 

These could include testimonials from donors explaining why they give, beneficiary stories about the transformative impact of support, or staff sharing their personal connections to the cause.

3. Balance “You” and “We” in Messaging: 

The language you use matters. 

Balancing individual-centered messaging (“You have the power to create change”) with collective language (“Together, we are transforming lives”) fosters a sense of both individual agency and collective purpose.

By weaving together these two perspectives, you create a narrative that celebrates the individual donor’s unique contributions while reinforcing their role in a values-driven community.

4. Create Spaces for Genuine Connection

Communities thrive when people feel connected. Establish spaces where donors can engage with each other and your team—whether through private online groups, in-person meet-ups, or interactive webinars. These platforms provide opportunities for donors to discuss shared goals, reflect on your mission, and see the collective impact of their contributions.

Reflection Questions for Your Team

By focusing on values-informed fundraising, you create opportunities to foster deeper, more authentic relationships with your supporters. Here are three questions you and your team can use to start infusing these strategies into your fundraising work:

• Are we effectively fostering a sense of community among donors and staff? Reflect on how your organization’s culture reinforces shared values internally and externally.
• Do our communications align with the values of our donors? Audit your messaging to ensure it authentically reflects the principles your supporters care about most.
• Where can we strengthen the alignment between our mission and donor values? Identify gaps in your initiatives, communications, or events where your donors’ values could be better integrated.

Trend #2: Integrated Data is Revolutionizing Donor Relationships

Nonprofits today face a challenge: Donors have more choices than ever before, and they expect personalized, meaningful interactions. For nonprofits who are doing things the old ways, that level of customization is going to be pretty much impossible.

The solution? Integrating marketing and fundraising data to gain a comprehensive view of donor behavior. When you connect these insights, you create more engaging donor journeys that reflect their interests, habits, and values. 

Marketing data shows how potential and existing supporters interact with your organization—while fundraising data, on the other hand, reveals what inspires them to give, how much they donate, and their giving patterns over time.

When these two data streams are siloed, you only see part of the story. Integration allows you to:

• Understand donor preferences: What type of content, campaigns, or causes resonate most?
• Anticipate giving behaviors: Which donors are ready to deepen their commitment or respond to a specific ask?
• Streamline outreach: By knowing how a donor engages, you can time your communications for maximum impact.

Here are some key strategies you should use to turn that data into the kinds of insights that will supercharge your giving. 

1. Start with Unified Data Systems

Disconnected databases are a common challenge for nonprofits, often leaving marketing and fundraising teams working in silos. 

A unified Constituent Relationship Management (CRM) system—like the kind offered by Neon CRM—is the foundation of a modern nonprofit’s data strategy, creating a single source of truth that centralized information, improving operational efficiency and enables personalized communication​​.

2. Make Donor Journeys Relevant

In today’s crowded digital landscape, relevance is the key to capturing attention and driving action. 

Tailoring your outreach to align with donors’ interests and behaviors ensures they see your organization as meaningful to their values.

Personalization goes beyond adding a merge field into an email. Show them how their engagement—whether it’s reading a blog, attending an event, or giving—has already made an impact. 

3. Proactively Seek and Act on Feedback

Donor feedback is one of the richest sources of insight. 

Regularly survey your supporters to learn what they value most about your work, and use those insights to refine both your marketing and fundraising strategies. 

Simple tools like post-donation surveys or event feedback forms can uncover new opportunities. 

4. Balance Technology with Human Insight  

Automated tools can help you analyze patterns and optimize outreach, but human insight is essential for interpreting nuance. 

Use technology to gather feedback, such as survey responses or engagement trends, but involve your team in identifying emotional drivers behind donor actions.

Reflection Questions for Your Team

By merging marketing and fundraising data, nonprofits can realign their outreach from transactional to transformational. 

This approach doesn’t just drive donations—it builds loyalty, deepens trust, and fosters long-term partnerships with supporters.

To make the most of this integration, ask:

• Are we using data to build a complete picture of our donors? Regular audits can reveal gaps in your systems or processes.
• Do our strategies reflect donor preferences? Look at response rates and engagement metrics to measure how well you’re meeting their expectations.
• How can we use insights to strengthen relationships? Consider what personalized actions you can take to make donors feel seen and valued.

Trend #3: Increasing Challenges in Grants and Impact Reporting

The landscape of grant funding is shifting. With increased scrutiny from government bodies and private foundations, securing grants is becoming more competitive. 

Funders are seeking detailed, quantifiable impact reports that align with their expectations—yet they often lack an understanding of the unique challenges and nuances of nonprofit work. 

A key factor behind this trend is the increasing complexity of federal grant opportunities, as seen in proposed policies shaping 2025 grant-making frameworks​. 

Nonprofits must now meet stricter criteria, provide more rigorous documentation, and anticipate changing priorities from both public and private funders. 

Successfully navigating this environment requires clear communication, diversified funding strategies, and proactive community education. 

Here are three strategies your organization can employ to gain a leg up in the new race for grant funding: 

1. Simplify and Sharpen Impact Communication

Communicating your nonprofit’s impact effectively is essential. Start by identifying the metrics funders care about most, such as economic benefit or program reach, and map them to the broader story of your work.

Use clear, concise visuals like charts and infographics to present data and pair quantitative metrics with qualitative stories from beneficiaries to highlight the human impact behind the numbers. 

And always remember to incorporate funder-friendly language that aligns your terminology with that used in grant guidelines to avoid misinterpretation.

2. Explore Alternative Funding Streams

Reducing reliance on grants strengthens financial resilience. Diversify your revenue sources by:

• Engaging individual donors through recurring giving programs.
• Hosting events or crowdfunding campaigns centered around specific initiatives.
• Collaborating with corporate sponsors who value community engagement.

This approach not only mitigates risks associated with fluctuating grant funding but also fosters stronger donor relationships. 

3. Advocating for Nonprofit Value

Educating your community about the nonprofit sector’s unique value is not just about protecting your organization’s place in the community—it’s about ensuring funders, partners, and supporters truly understand the transformative work you do. 

Whether it’s showcasing the innovation sparked by unrestricted funding, sharing stories that illuminate the long-term impact of your mission, or inviting funders to witness your work firsthand, these efforts all contribute to building trust and understanding. 

Reflection Questions for Your Organization

As you reassess your organization’s approach to grants, consider the following questions:

• Are we clearly articulating our impact in ways funders understand? Evaluate your current reports and consider soliciting feedback from trusted partners.
• How diversified is our funding strategy? Identify areas where reliance on a single grant or funding source could pose a risk.
• How can we better inform funders about the unique nature of nonprofit impact? Ensure funders see the bigger picture, not just isolated metrics.

In a climate of heightened scrutiny, nonprofits must become both storytellers and strategists. 

By embracing clear communication, seeking diverse revenue streams, and educating community members, your organization can not only secure grants but also build long-lasting partnerships that recognize the full value of your work.

Trend #4: Mid-Level Donors Are More Important Than Ever

In the race to secure major gifts, mid-level donors often don’t get the attention they deserve. 

Yet this group holds tremendous potential—not just as consistent givers, but as the future of your major gift acquisition. 

Mid-level donors are the backbone of many nonprofit organizations. While major donors contribute significant one-time gifts, mid-level supporters often give consistently and grow their contributions over time. 

With recurring giving on the rise, nonprofits have an opportunity to deepen these donors’ engagement, nurturing their journey toward transformative commitments like donor-advised funds or planned giving.

By focusing on mind-level donors, nonprofits can build sustainable funding streams while cultivating relationships that lead to future major gifts or planned contributions.

Here are three ways that your organization can do that!

1. Recognize Their Impact

Many mid-level donors feel overlooked compared to their major gift counterparts. 

Personalize your approach to show them their importance by using tailored messaging in your thank-you letters, acknowledging their consistent support.

Go a step further by offering unique opportunities, such as behind-the-scenes updates or small group webinars with leadership or beneficiaries. 

You can even introduce them to a mid-level donor giving society or club to build community and pride in their contribution level.

2. Provide Pathways for Deeper Involvement

To encourage increased commitment, provide options for mid-level donors to become more engaged:

• Volunteer Opportunities: Invite them to participate in events or serve on advisory boards.
• Donor-Advised Funds (DAFs): Educate donors about the simplicity and tax advantages of opening a DAF to support your mission.
• Planned Giving: Highlight how legacy gifts can make a lasting impact while providing financial benefits for their families.

Frame these options as next steps in their giving journey, emphasizing how each action aligns with their values and your mission.

3. Craft Personalized Outreach Campaigns

To nurture this critical group, focus on making them feel seen and valued: Segment your database to identify mid-level donors and craft tailored communications that speak to their unique role in your mission. 

In this communications, share stories of peers who have deepened their commitment through planned giving or donor-advised funds and sse empowering language like, “Your support powers this work,” to reinforce their impact and importance. 

Reflection Questions for Your Organization

Mid-level donors are more than a stepping stone to major gifts—they are essential to building a resilient, thriving nonprofit. 

Here are some questions that your team should ponder as you build your mid-level donor strategy.

• Are we giving mid-level donors the recognition and opportunities they deserve? Review your engagement strategies to ensure this group feels seen and appreciated.
• What steps are we taking to introduce next-level giving options? Develop campaigns and materials that make planned giving or DAFs accessible and appealing.
• Are we treating mid-level donors as partners in our mission? Evaluate your communications to ensure they emphasize collaboration and shared impact.

Trend #5: Reimagining Events as Community Gatherings

For years, nonprofit events have focused on fundraising totals—silent auctions, galas, and ticketed dinners where the primary goal was to raise money on the spot. 

But today’s donors crave something different: Meaningful experiences that connect them to your mission and to each other. 

By reimagining events as community gatherings, nonprofits can strengthen relationships, foster a sense of belonging, and move beyond the “donor as ATM” mentality.

Events that focus on creating shared experiences help donors feel like active participants in your cause, not just financial contributors. 

Here are four ways that you can start putting on events that foster a real sense of community:

1. Make Mission the Heart of the Event

Every element of your gathering should reinforce your organization’s mission. 

Use messaging throughout the event to remind attendees of their role in advancing your mission. 

Signs, speeches, and handouts should all answer the question: “Why are we here?”

2. Add Interactive Elements

Passive events don’t build relationships. Incorporate interactive activities that engage donors.

Use tools like Slido to let attendees weigh in on your initiatives or ask questions during a presentation.

Allow donors to “step into the shoes” of your beneficiaries through role-playing scenarios, virtual reality experiences, or on-site simulations.

3. Foster Community Connections

Design your event to build relationships, not just between attendees and your organization, but also among donors themselves. 

Include networking spaces or small group breakout sessions where donors can discuss shared values and interests. 

Encourage donors to exchange ideas and forge bonds, making your event a true community gathering.

4. Follow Up Thoughtfully

After your event is over, send personalized follow-ups that reflect the event’s tone. 

Share photos, quotes, or video highlights to help attendees relive the experience and reinforce their impact by mentioning specific outcomes from the event: “Thanks to your participation, we raised $X to provide meals for 500 families this winter.”

Reflection Questions for Your Team

By transforming your events into meaningful community gatherings, you invite donors to engage with your cause on a deeper level. 

Here are three questions that you can ask your team that will help your create a community-driven events strategy: 

• Are our events mission-driven, or do they feel purely transactional? Evaluate your current event lineup to identify areas for greater mission integration.
• What opportunities exist to make our events more interactive and engaging? Brainstorm hands-on activities that immerse donors in your work.
• How can we foster deeper connections between attendees? Plan elements that encourage storytelling, networking, and shared experiences.

Join Us for an AMA on the Future of Nonprofit Tech

Embracing these trends is about more than staying current—it’s about shaping the future of nonprofit technology in a way that aligns with your mission and values.With intentionality, creativity, and collaboration, nonprofits can build a future that works for everyone. We don’t just react to change—we lead it. 

As we refine the Neon One ecosystem for 2025, we’re excited to collaborate with you to design meaningful, innovative generosity experiences that inspire donors and drive impact.

To dive deeper into these ideas and explore how your organization can lead the way, join us for the Nonprofit Tech Hotline: Ask Me Anything About the Future of Nonprofit Technology on December 19, 2024, at 2:00 p.m. Eastern. 

It’s your chance to ask questions, gain actionable insights, and prepare your nonprofit to thrive in the year ahead.