The State of Modern Fundraising

At the Blackbaud Institute, we’ve been closely watching how fundraisers are navigating today’s evolving landscape—and what we’re seeing is both inspiring and instructive. 

Yes, 2025 brings its share of uncertainty. Economic shifts, changing donor demographics, and policy changes are all reshaping the way we work. But here’s the good news: fundraisers are adapting, and as they do so, they are both contributing to and riding the wave of positive macro trends in our space, some of which were reported in the latest Giving USA annual report. Total giving is on the rise, with contributions increasing 3.3% when adjusted for inflation. Generational participation, especially among Millennials and Boomers, continues to drive annual giving, while Gen Z is stepping in with innovative approaches to support. 

In fact, among the hundreds of professionals we surveyed in our latest Blackbaud Institute research, The Status of Fundraising in the AI Era (2025), most told us they’re meeting or exceeding their goals. That’s not just resilience—it’s evolution in action.

What’s Working—and Why
We found that—despite reporting significant concerns over the economy and changing policy environments—72% of fundraisers hit or surpassed their targets in the past year. That’s a powerful signal that even in a complex environment, success is possible. What sets the most successful and confident organizations apart in our study? Two things stood out, and, encouragingly, both of them are within the reach of any organization that prioritizes them: digital maturity and data health. 

We found that organizations that had integrated their tech stacks—one of the key markers of high digital maturity—were more likely to have seen revenue growth. There are many reasons for this, including the fact that integrated tech usually points to integrated teams, working together toward clear goals. And those with strong data practices are better positioned to act on insights, prioritize resources, and engage donors in meaningful ways. It’s not about having more data—it’s about collecting it in the right ways and knowing what to do with it. 

The study also underscored that individual giving remains the bedrock of nonprofit revenue. Even as donor-advised funds and other vehicles grow, individual contributions still make up the largest share of giving. That means building strong, lasting relationships with individual donors is as important as ever. 

AI: A Tool, Not a Trend
One of the most talked-about shifts in our sector—as with every sector right now—is the rise of AI. In our research, over 80% of nonprofit professionals said they’re using AI in their daily work. That’s a big leap from just a year ago. 

The most common uses reported in our study? Content creation, note-taking, and donor research. But AI is also helping with activities more directly tied to revenue, like segmentation and wealth screening.  

The sentiment across the fundraising pros we surveyed is largely positive—most fundraisers believe AI will make their organizations more efficient and help them better connect with supporters, even as they seek to ensure that AI is used responsibly and in ways that builds, not erodes, relational trust.

At Blackbaud, we see the massive potential of AI to transform what’s possible for nonprofit organizations while supporting and expanding, but not replacing, the deeply human elements of fundraising. It’s why we’re investing so significantly in expanding our Intelligence for Good® AI strategy to make AI responsible, powerful and convenient for the essential business operations of social impact.

And we also already have a good picture of the types of organizations that will be able to harness the potential of AI in the most transformative ways. It’s the same two distinctives that separate the nonprofits adapting in today’s environment and those struggling to: digital maturity and data health.

When an organization has a strong foundation of integrated technology and clean, well-managed data, it’s far better positioned to unlock the full potential of AI. These two elements aren’t just operational advantages; they’re prerequisites for using AI in ways that are truly transformative. Without them, AI tools can’t deliver meaningful insights or scale impact effectively. But with them, fundraisers can move from being reactive to being strategic, using AI to deepen donor relationships, streamline workflows, and make smarter decisions faster.

A Moment of Possibility
What we’re seeing is a sector in motion. Fundraisers are not just reacting to change—they’re leading through it. They’re asking big questions, trying new approaches, and leaning into the tools that help them do more of what matters.

At the Blackbaud Institute, we believe this is a moment of possibility. A moment to rethink what’s possible when we combine smart strategy, strong relationships, and the right technology.

If you’re curious about what’s next—and how your organization can stay ahead—we invite you to explore the full findings in our latest report: https://institute.blackbaud.com/resources/status-of-fundraising-2025. 

We think you’ll find insights that not only inform your strategy but inspire your next move.

This article was originally published on August 18 by Giving USA here. 

 

Author Bio
Carrie Cobb is an accomplished innovator and change-agent capable of translating multifaceted data and analytics products into successful business initiatives and consumer experiences. She holds over 25 years of experience in developing data-driven analytic solutions, with the goal of leveraging advanced analytic methodologies and artificial intelligence to create easy to execute strategies for the social impact community.

As the Chief Data and AI Officer at Blackbaud, Carrie leads the Data Intelligence Center of Excellence, and is responsible for Blackbaud’s AI and data strategy, vertical-focused product innovation, data science and engineering disciplines, and data governance and ethics.

She chairs the Advisory Council on Methodology for the Giving USA Foundation, serves on the Governmental Affairs Committee for the Nonprofit Alliance, and is a member of the Advisory Council for Fundraising.AI. Carrie has been honored as one of DataIQ’s 100 Most Influential People in Data in both 2024 and 2025, and was named to CDO Magazine’s Global Data Power Women List 2023. She holds a Chief Data Officer Certificate from Carnegie Mellon University.