Fundraising Talks
News and updates from the USM Office of
Advancement Research
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Nonprofits' fundraising strategies have shifted significantly in recent years, especially with the pandemic accelerating the adoption of digital tools. In 2025, staying current with AI, personalized donor engagement, and multichannel campaigns is crucial for success. AI is helping nonprofits automate tasks, analyze donor data, and personalize communication, though data privacy remains a concern. Additionally, donors now expect more tailored experiences, which can be achieved using CRM systems to track preferences and donations. Multichannel campaigns, which reach donors through platforms like email, social media, and text messages, are essential for increasing engagement, while peer-to-peer and crowdfunding efforts tap into the power of social networks to amplify support. Click here to read more.
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The Trump administration has issued over two dozen executive orders in its first week, reversing Biden-era policies with significant implications for higher education, particularly around immigration and diversity, equity, and inclusion. Increased visa restrictions and tighter vetting could impact international students, while efforts to limit protections for undocumented students could affect institutions providing legal aid or in-state tuition for these students. New orders targeting DEI programs call for a ban on race- and gender-based initiatives in federal agencies and contractors, which challenge Title IX protections for transgender students, especially in athletics and single-gender spaces. In addition, executive actions have rolled back support for minority-serving institutions and rescinded environmental policies that fund sustainability initiatives at colleges. Click here to read more. | | |
 | | The Fundraising Effectiveness Project's new research reveals a 4.6 percent drop in donor retention through the third quarter of 2024, marking a fourth consecutive year of decline, partly due to inconsistent donor engagement strategies. To improve retention, nonprofits need to prioritize year-round engagement and use high-visibility channels like text messaging to ensure better communication reach. Monthly giving continues to outperform one-time donations, while donor acquisition remains a top challenge. Nonprofits can boost acquisition by targeting qualified leads through social ads and omnichannel follow-ups. Major moments, such as disaster relief, should extend beyond email to include faster, more visible channels like texting and search ads, which have shown high returns on investment. To succeed in 2025, nonprofits need to enhance engagement, grow monthly giving, and adopt innovative strategies for acquisition and communication. Click here to read the full article, which gives examples of each lesson.
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Effective donor segmentation is the key to building strong, long-term relationships with supporters. By segmenting donor data, nonprofits can tailor their messaging and increase engagement, as donors are more likely to respond to communications that align with their preferences and motivations. Common segmentation strategies include categorizing donors by gift level, age, giving frequency, and communication preferences, with regular review to ensure these segments remain relevant. Using tools like CRMs can help automate segmentation and avoid errors and ensure that messages reach the right donors at the right time. However, nonprofits must align their segmentation efforts with specific fundraising goals to avoid unnecessary complexity and ensure maximum impact. Click here to read more. | | |
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Giving to institutions reached a record $58 billion in 2023, showing that philanthropy continues to support American higher education. However, colleges face challenges such as rising costs, shrinking enrollment, political tensions, and the increasing demand for vocational training over traditional degrees. To thrive, institutions must refine their strategies for donor engagement and communication. Fostering relationships through personalized stewardship, enhancing alumni involvement, and leveraging technology for fundraising are key. This article from Giving USA says that despite challenges, higher education remains positioned for growth by focusing on inclusivity, innovative giving methods, and data-driven strategies to connect with future donors. Click here to read more.
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This week, the nonprofit sector faced significant uncertainty after the Trump administration issued (then rescinded) guidance halting federal grant and loan payments to organizations. This created confusion among nonprofits reliant on government funding. Leaders are now advised to quickly assess their financial strategies, diversify revenue streams, and leverage philanthropic support to weather potential funding disruptions. Collaboration between advancement and finance teams is essential, as is clear communication with staff and donors to address uncertainty. The ongoing changes highlight the need for nonprofits to build resilience and ensure long-term sustainability by diversifying funding sources and focusing on mission-driven goals. Click here to read the full article. | | | | |
