According to the report, charitable giving increased an estimated 5.0% in 2025\u2014the sector\u2019s strongest fundraising growth in five years. But donor counts declined an estimated 3.6% year over year, continuing a downward trend that began in 2021.
Much of that fundraising growth came from major donors, leaving many nonprofits increasingly dependent on fewer supporters giving larger gifts.<\/p>\n
For nonprofit professionals, this moment represents an opportunity for strategic fundraising planning. Organizations that invest now in donor retention, donor stewardship, donor acquisition, and personalized engagement may be better positioned for long-term fundraising sustainability in 2026 and beyond.<\/p>\n
This blog explores the report\u2019s biggest fundraising trends and the donor retention strategies nonprofits can use to build stronger donor relationships in today\u2019s evolving fundraising landscape.<\/strong><\/p>\n The FEP report analyzed fundraising data from 15,102 nonprofit organizations representing 7.8 million donors and $13.2 billion in charitable contributions.<\/p>\n Some of the report\u2019s most important findings include:<\/p>\n While philanthropic giving increased 5.0% for the year, growth through Q3 was estimated at 3.7%, making Q4 an exceptionally strong fundraising quarter that significantly boosted year-end results.<\/p>\n Did you know?<\/strong> Small improvements in donor retention can have a major long-term impact on fundraising sustainability.<\/p>\n The FEP Q4 2025 Report found that donor retention improved slightly overall, but nonprofits still struggle to convert first-time donors into repeat supporters. New donor retention remained essentially flat, reinforcing how important stewardship and donor engagement remain across the sector. Fundraising reporting and analytics tools<\/a> can give nonprofits better visibility into retention trends, donor engagement patterns, and opportunities for long-term growth.<\/p>\n<\/div>\n While higher-dollar gifts helped boost fundraising totals, the report raises an important concern: nonprofits may be becoming too reliant on a shrinking pool of donors.<\/p>\n That\u2019s why donor acquisition and donor retention strategies<\/a> remain foundational to sustainable fundraising.<\/p>\n<\/div>\n The FEP report notes that \u201cconverting a first gift into a second remains the most consequential unsolved problem in the donor pipeline.\u201d<\/p>\n Many nonprofits work hard to attract new supporters through:<\/strong><\/p>\n Pro tip:<\/strong> Trusted personal networks can expand donor acquisition and introduce your mission to new audiences.<\/p>\n Peer-to-peer fundraising<\/a> empowers nonprofits to reach new supporters through trusted personal networks, making it one of the most effective donor acquisition strategies available today. With Givecloud\u2019s peer-to-peer fundraising tools\u2014now part of DonorPerfect\u2014supporters can easily create personal fundraising pages, share campaigns online, and drive donations directly into your nonprofit CRM for accurate tracking and stewardship.<\/p>\n<\/div>\n But if those first-time donors never make a second gift, nonprofits can end up stuck in a constant cycle of replacing lost supporters.<\/p>\n Strong donor retention strategies position nonprofits to:<\/strong><\/p>\n According to DonorPerfect\u2019s donor engagement resources<\/a>, the strongest donor relationships are built through ongoing, personalized engagement rather than transactional fundraising alone. That\u2019s especially important as donors increasingly expect personalized, connected experiences from the organizations they support.<\/p>\n While donor participation continued to decline in 2025, the report notes that the pace of those losses has slowed since 2022. Whether that trend represents a true recovery or simply a smaller donor pool remains to be seen, but it may signal a turning point for the sector heading into 2026.<\/p>\n<\/div>\n Many nonprofits already understand the importance of donor stewardship<\/a>. The challenge is executing it consistently with limited time and staff resources.<\/p>\n An effective donor stewardship strategy often includes:<\/strong><\/p>\n Pro tip:<\/strong> Consistent stewardship matters most immediately after a donor\u2019s first gift.<\/p>\n With a nonprofit CRM like DonorPerfect, nonprofits can automatically send thank-you emails<\/a>, assign follow-up tasks, segment donor records, and trigger personalized welcome journeys that strengthen donor retention from day one.<\/p>\n<\/div>\n The FEP Q4 2025 Report reinforces that nonprofits retain donors they already know but continue struggling to engage newly acquired supporters.<\/p>\n That means the first few weeks after a donor\u2019s initial gift are critical for building a strong relationship with the donor.<\/p>\n<\/div>\n The fundraising trends highlighted in the FEP Q4 2025 Report point toward a clear takeaway: nonprofits need stronger systems for relationship-building.<\/p>\n Here are five practical ways organizations can strengthen donor retention and fundraising sustainability moving forward.<\/p>\n A donor\u2019s first interaction with your nonprofit sets the tone for the entire relationship.<\/p>\n According to DonorPerfect\u2019s donor journey framework, effective first-time donor <\/a>experiences often include:<\/strong><\/p>\n Pro tip:<\/strong> Donor retention improves when supporters feel connected beyond a single fundraising appeal.<\/p>\n Automated donor journeys<\/a> give nonprofits a structured way to move supporters from first gift to long-term engagement through personalized emails, follow-ups, volunteer invitations, and recurring giving opportunities.<\/p>\n<\/div>\n Creating thoughtful onboarding experiences can help nonprofits improve first-year donor conversion\u2014one of the most important concerns highlighted in the FEP Q4 2025 Report.<\/p>\n Recurring donors create stable, predictable fundraising revenue for nonprofits of all sizes. The FEP Q4 2025 Report suggests nonprofits should focus on building broader donor participation, and recurring giving programs are one effective way to strengthen long-term engagement.<\/p>\n Pro tip:<\/strong> Recurring giving programs help nonprofits create more stable, predictable fundraising revenue. Make monthly giving easy to find across the donor journey.<\/p>\n Recurring donors<\/a> often give more consistently over time, making sustainer programs an important part of long-term fundraising growth. Adding recurring gift prompts to online donation forms and email campaigns helps normalize monthly giving as part of the donor experience.<\/p>\n<\/div>\n For nonprofit leaders looking to grow recurring revenue, visibility matters. Donors are more likely to enroll in monthly giving when the option is presented consistently across fundraising and stewardship touchpoints.<\/p>\n Donors expect nonprofits to communicate with relevance and purpose.<\/p>\n That\u2019s why segmentation and donor data management have become essential fundraising tools.<\/p>\n With a nonprofit CRM like DonorPerfect, organizations can use donor data to create more relevant, personalized outreach based on:<\/strong><\/p>\n Segmentation gives fundraising teams clearer insight into donor behavior, making it easier to create more targeted campaigns, stewardship plans, and fundraising strategies.<\/p>\n DonorPerfect has really helped us segment our donors and prospects, so that we can provide better targeted communications and solicitations to them. It has been a significant factor in increasing our revenue by almost 20% over the last five years. It has also made a number of gift processing tasks simpler, saving valuable staff time.<\/p>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t \u2013 Soula D., Database and Donor Relations Officer<\/p>\n\t\t\t\t\t\t\t\t Fundraising insights are only as reliable as the data behind them.<\/p>\n Without clean donor records, nonprofits may struggle to:<\/strong><\/p>\n For nonprofit leaders, clean donor data creates a stronger foundation for fundraising strategy, reporting, stewardship, and team accountability.<\/p>\n Pro tip:<\/strong> Strong donor retention strategies start with accurate, organized donor data.<\/p>\n When fundraising teams can accurately track donor activity, engagement history, and campaign participation through strong donor data reporting<\/a>, they can create more relevant outreach and stronger stewardship experiences.<\/p>\n<\/div>\n As donor participation continues to decline, the FEP report underscores the need for nonprofits to better understand donor behavior<\/a>, where donors disengage, and what motivates them to stay involved. That level of insight starts with accurate, well-maintained donor data.<\/p>\n One of the biggest takeaways from the FEP Q4 2025 Report is that fundraising sustainability depends on more than large gifts alone.<\/p>\n Organizations that focus exclusively on high-dollar fundraising may miss opportunities to build broader donor communities.<\/p>\n DonorPerfect\u2019s donor engagement models encourage nonprofits to measure engagement holistically through:<\/p>\n Did you know?<\/strong> Donor engagement scores and donor journey reporting can help nonprofits identify supporters who are ready for deeper involvement, recurring giving, or major donor cultivation, even before gift size alone reflects it.<\/p>\n DonorPerfect\u2019s Donor Score<\/a> gives fundraisers the insight they need to turn giving history and engagement details into informed next steps with supporters.<\/p>\n<\/div>\n Building stronger donor relationships across multiple engagement points may help nonprofits reduce overreliance on a shrinking group of major donors.<\/p>\n<\/div>\n The FEP Q4 2025 Report highlights how difficult it has become for nonprofits to grow donor participation consistently.<\/p>\n That\u2019s why many organizations are investing in integrated nonprofit CRM systems<\/a> that centralize fundraising, stewardship, reporting, and donor engagement.<\/p>\n A nonprofit CRM like DonorPerfect empowers organizations to:<\/p>\n Instead of juggling donor records across multiple tools and systems, nonprofits can use donor data more strategically while streamlining staff workflows.<\/p>\n For busy nonprofit professionals like development directors and executive directors, automation and reporting tools can help simplify fundraising workflows while strengthening donor relationships.<\/p>\n Pro tip:<\/strong> Automation gives nonprofits more consistency across donor stewardship and follow-up.<\/p>\n With DonorPerfect\u2019s automation tools<\/a>, nonprofits can trigger personalized emails, assign follow-up tasks, send reminders, and streamline donor outreach workflows, helping teams save time while creating more consistent donor experiences.<\/p>\n<\/div>\n The FEP Q4 2025 Report offers an important reminder for nonprofit organizations: fundraising growth alone does not guarantee long-term sustainability.<\/p>\n Yes, charitable giving increased in 2025. But much of that growth came from larger gifts rather than broader donor engagement, which continued to decline.<\/p>\n Organizations best positioned for sustainable fundraising growth may now be investing in:<\/p>\n By strengthening donor engagement at every stage of the donor journey, nonprofits can build more resilient fundraising programs that support long-term mission impact.<\/p>\n Build stronger donor relationships with tools designed to improve donor retention, automate stewardship, track fundraising performance, and grow recurring giving.<\/p>\n Explore DonorPerfect\u2019s nonprofit CRM and fundraising tools<\/a> today.<\/p>\n The FEP Q4 2025 Report is a fundraising industry report published by the Fundraising Effectiveness Project (FEP)<\/a>, a collaboration of the Association of Fundraising Professionals (AFP) and GivingTuesday. It analyzes donor retention, donor acquisition, and charitable giving trends across thousands of nonprofit organizations.<\/p>\n<\/div>\n\t\t\t\t According to the FEP Q4 2025 Report, much of 2025\u2019s fundraising growth came from major donors. While larger gifts increased, overall donor participation continued to decline, especially among smaller donors. Strong donor stewardship and recurring giving strategies<\/a> can help nonprofits reduce donor churn and build more stable fundraising revenue.<\/p>\n<\/div>\n\t\t\t\t Donor retention helps nonprofits build sustainable fundraising revenue, reduce donor acquisition costs, increase donor lifetime value, and strengthen long-term supporter relationships. Learn more about building stronger donor relationships with DonorPerfect\u2019s donor engagement resources<\/a>.<\/p>\n<\/div>\n\t\t\t\t Nonprofits can improve first-year donor retention through personalized thank-you messages, welcome email series<\/a>, recurring giving opportunities, donor segmentation, and consistent stewardship communication. Automated donor journeys and segmented communication tools can help nonprofits create more personalized first-year donor experiences.<\/p>\n<\/div>\n\t\t\t\t A nonprofit CRM helps organizations automate stewardship, track donor engagement, personalize outreach, manage recurring giving, and analyze donor retention trends more effectively. DonorPerfect\u2019s nonprofit CRM<\/a> combines donor management, reporting, automation, online fundraising, and recurring giving tools in one integrated platform.<\/p>\n<\/div>\n\t\t\t\tWhat the FEP Q4 2025 Report reveals about fundraising today<\/h2>\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\nWhy donor retention remains one of fundraising\u2019s biggest challenges<\/h2>\n
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What strong donor stewardship looks like in 2026<\/h2>\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\nDonor retention strategies for nonprofits<\/h2>\n
1. Improve first-time donor experiences<\/h3>\n
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![\"The](\"https:\/\/uploads.donorperfect.com\/images\/sites\/2\/donor-journey-mockup-v2.jpg\")
<\/figure>\n<\/div>\n<\/div>\n<\/div>\n2. Invest in recurring giving programs<\/h3>\n
Monthly giving programs<\/a> can also improve donor retention because supporters remain connected to your mission year-round instead of only during seasonal campaigns.<\/p>\n![\"Monthly](\"https:\/\/uploads.donorperfect.com\/images\/sites\/2\/monthly-giving-dashboard-mockup.jpg\")
<\/figure>\n<\/div>\n<\/div>\n<\/div>\n3. Use donor data to personalize communication<\/h3>\n
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4. Prioritize clean fundraising data<\/h3>\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\n5. Strengthen donor engagement beyond gift size<\/h3>\n
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![\"donor](\"https:\/\/uploads.donorperfect.com\/images\/sites\/2\/donor-score-solo.jpg\")
<\/figure>\n<\/div>\n<\/div>\n<\/div>\nWhy donor retention depends on the right nonprofit CRM<\/h2>\n
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Frequently Asked Questions<\/h2>\t\t
1. What is the FEP Q4 2025 Report?<\/h3>
\n\t\t\t<\/div>\n\t\t\t\t\t\t2. Why are donor counts declining even though fundraising revenue increased?<\/h3>
\n\t\t\t<\/div>\n\t\t\t\t\t\t3. Why is donor retention important for nonprofits?<\/h3>
\n\t\t\t<\/div>\n\t\t\t\t\t\t4. How can nonprofits improve first-year donor retention?<\/h3>
\n\t\t\t<\/div>\n\t\t\t\t\t\t5. How does a nonprofit CRM improve donor retention?<\/h3>
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