In 2025, nonprofits are advised to diversify fundraising sources due to decreased federal funding resulting in significant budget challenges. Relying on a few major donors poses risks; if one donor withdraws, it can jeopardize organizational sustainability. While small donors are important, the capacity to engage with them is limited because many nonprofits lack the necessary human resources and automation tools. Research shows that organizations using integrated systems for donor management achieve higher revenue growth and retention rates compared to those with less cohesive solutions.
In 2025, the compelling advice from consultants and advisors to nonprofits is to diversify their fundraising sources due to reduced federal funding and significant budget cuts.
Nonprofits facing resource constraints often concentrate fundraising efforts, relying heavily on fewer large donors. This creates risk if one major donor withdraws their support.
Maintaining relationships with smaller donors is increasingly essential due to a volatile funding landscape, yet many nonprofits lack the human resources to manage such relationships effectively.
Research indicates that nonprofits with integrated systems for donor management see significantly higher revenue growth and donor retention rates than those utilizing disjointed solutions.
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