Fundraising Update

Welcome to Fundraising Update. This week, we look at the top trends fundraisers should watch in 2025. Plus, MacKenzie Scott recently announced she’d given away another $2 billion and signaled changes in her giving.

I’m Rasheeda Childress, senior editor for fundraising at the Chronicle of Philanthropy. If you have ideas, comments, or questions about this newsletter, please write me.

Every new year brings trends that will shape how fundraisers do their jobs and interact with donors. This year is no different. Some issues — like a loss of donors — are recurring themes that fundraisers must attempt to address each year, and others — like potential changes to the tax law — are unique to the moment.

Here’s my take on the top issues for fundraisers to watch as the year unfolds.

With the Tax Cut and Jobs Act expiring this year, lawmakers will be scrambling to pass new tax legislation to replace it.

The TCJA has been a thorn in the side of charities since it was enacted. A working paper found changes in the bill likely cost charities $16 billion in gifts each year since 2018. The reason: TCJA raised the standard deduction, resulting in fewer people who itemize and use the charitable tax deduction.

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This year, a bipartisan coalition of nonprofits will push for a charitable deduction for non-itemizers. If that passes, fundraisers need to be ready to let donors know how a new deduction might allow them to increase their giving.

While a new tax law is extremely likely to pass, the likelihood of other legislation that would affect fundraisers is more nebulous. There is talk of requiring payouts for donor-advised funds. If such a law were passed, it would mean more money to charities. There is also concern among nonprofit leaders about a bill that would give the treasury department power to revoke an organization’s nonprofit status.

Last year, many fundraisers got their feet wet using artificial intelligence. Some experimented with using A.I. to help write appeals and launch campaigns with lapsed donors. Others went so far as to use A.I. to interact with their donors through an autonomous fundraiser.

But as the technology quickly advances, it may become harder for fundraisers to keep up and figure out how to best use the technology in ways that support their work — but don’t alienate donors.

Even as some fundraisers are using the technology, it’s not clear donors are ready. A trust survey by the BBB Wise Giving Alliance found that many wealthy donors don’t trust A.I. — among those earning $200,000 or more, 70 percent said they would “be discouraged from giving” to a charity that used A.I. in its appeals.

To learn more about the rest of the trends — including dwindling donors, donor-advised funds and financial strains, read my entire article.

— Amount MacKenzie Scott announced she gave away in 2024

In what has become MacKenzie Scott’s annual year-end summary of her giving, the maverick philanthropist discussed her gifts in 2024 — more than $2 billion to 199 organizations — and signaled new wrinkles in her philanthropy, reports my colleague Drew Lindsay.

Altogether, Scott has now given away more than $19 billion since she first jumped into major philanthropy five years ago. More than 30 of 2024’s gifts represent her second donation to the nonprofit, until now a rare double blessing. Before this year, Scott had made multiple gifts to only 13 organizations since 2019, according to the Yield Giving website.

Indeed, her largest gifts in 2024 — $65 million each — went to two groups that previously received $40 million from Scott: Enterprise Community Partners and the Local Initiatives Support Corporation, national organizations that promote economic opportunity.

In her announcement, Scott also said that she is beginning to pursue investing her wealth in for-profit companies and funds seeking solutions to societal challenges in housing, health, and other areas. She described seeking out “mission-aligned ventures with leaders from the populations they are serving or from generally undercapitalized groups like women and people of color.”

“In this way,” she added, “the money can help address these issues twice, first by advancing economic mobility and unlocking the innovation and social benefit that comes from incorporating diverse needs and perspectives in the world being constructed around us, and next in the hands of experienced nonprofit teams creating value through their transformative models of care and change.”

For more on Scott’s philanthropic giving shift, read the rest of Drew’s article.

• Donors-Down, Dollars-Up Trend Continues. The familiar story of charities raising more dollars from a smaller number of donors continued in the third quarter of 2024, according to new data I reported on from the Fundraising Effectiveness Project, a research collaborative that examines trends in giving.

  The FEP report found that the amount donors gave increased slightly, almost 1 percent, while the number of donors declined 5.3 percent, compared to the same period in 2023.

  “This is largely driven by the ways in which nonprofits are choosing to engage,” says Woodrow Rosenbaum, chief data officer for GivingTuesday, which partners with the Association of Fundraising Professionals Foundation for Philanthropy to put out the report. “I am concerned about the continued decrease in the size of the donor pool, particularly losses in the grassroots giver communities. That’s not sustainable long term, and we have to turn it around.”

  For more from the report, read my full article.

Stillman College, a historically Black college in Tuscaloosa, Ala., has received $2 million from Charles and Susan Stillmanto augment its endowment. The gift will be used to enhance scholarships, faculty development, academic programs, and campus facilities.

Charles Stillman is a retired technology consultant in Seattle, and Susan Stillman is a retired elementary school teacher. He is the great-grandson of the college’s namesake, Rev. Charles Allen Stillman, who founded the college in 1876 while serving as lead pastor at the First Presbyterian Church of Tuscaloosa.

For other notable gifts this week, read my colleague M.J. Prest’s Gifts Roundup column. To learn about other big donations, see our database of gifts of $1 million or more, which is updated regularly and has data going back to 2000.

Looking to Lead? Try Your Hand at Fundraising First, Experts Say.Fundraising experience is key for those looking to advance into demanding leadership roles, nonprofit executives say.

Article on DAFs’ Problems Was Spot On. My Experience Is Proof (Opinion). The DAF system is broken, says one reader, but a simple fix could help ensure the funds go where they’re needed most.

Fundraising via Lamp Post. It’s always fun to see charities executing creative fundraising ideas in their communities. So, I’ve got to admit I was smitten when I heard about the the Rotary Club of Lancaster Penn Square’s Hearts for Lancaster and Pets fundraiser.

The campaign, targeted at people who want to impress their Valentine and support a good cause, allows donors to have a heart with a message posted on a lamp post in town. Donations start at $50 for a heart with a message, such as “Crazy 4 U” and “Kiss Me on King Street.” The really daring can even use a sign post to propose by springing for “Will You Marry Me.”

All the signs are personalized, so they’ll include the name the signpost is intended for at the beginning and who it’s from at the end (like, Ella, Crazy 4 U, Porter). Definitely a cute way to raise money and spread the love. (Lancaster Online)