Rossi's Roundup: Fresh perspectives to kick off 2025

I began writing these monthly touchpoints in 2019 as I reflected on the new year. It's hard to believe that was six years ago.

I remember how challenging it was, as a development professional, to stay on top of articles, case studies and industry insights. Time always felt too scarce, and I often found myself backtracking to gather “proof points” for my board—explaining trends in revenue, identifying opportunities we might have missed, or justifying new strategies we should explore.

Admittedly, I still don’t have endless time to read everything, but I do my best to curate and share what I find valuable. Here are a few notes and thoughts before we dive into case studies and articles:

💡 When it comes to basic skills such as creating a complex travel itinerary, reading a thermometer or finding information from a website, American workers are falling behind those in other rich countries. That is according to a global test of adult know-how, which measures job readiness and problem-solving among workers in industrialized countries. It also suggests that employers might have a hard time finding workers capable of basic levels of critical thinking.

🔐 Stewardship Retention should be a front and center section of your development plan. Have trouble proving why your organization should invest in stewardship communications? Metrics include next year’s retention rate; increase in average gift; conversion rate if they are prospects. What are you doing to make those 7 touches and engage your donors? Here’s a few thoughts:

Timely AND personalized thank you letters acknowledging their gift mentioning specifics

Thank you notes

Thank you calls

Thank you emails showing the impact of their gift on a regular schedule – think about dashboards

Video updates by email and text

Anniversary, birthday and milestone celebrations

Surveys both general and specific, seeking to understand the donor’s intent and interests in a way that is more deep-dive than surface information

Tours including behind-the-scenes

Event invitations for both in-person and live interactive experiences

Invitations to join specific organization communities

Newsletters both digital and print

Text messages – bring the donors on the front line of something exciting or in progress

Impact updates in-person, by mail and email

✴️ Thanks to Dana Snyder’s post on LinkedIn for some great ideas on monthly recurring giving. As she was promoting the upcoming Monthly Giving Summit, she shared these terrific thoughts:

Imagine this: a *Corporate Partnership Bundle* where your nonprofit teams up with a brand that shares your values. For just $30/month, subscribers get exclusive benefits from both your organization and the corporate sponsor.

Here’s how it could look:

🌍 Partnership Example: A clean water nonprofit + a sustainable water bottle company.

✨ Benefits for Subscribers:

Exclusive discounts on the brand’s products
Monthly donations from their subscription go directly to your nonprofit
Branded gear (like a custom water bottle) as a welcome gift
Virtual events featuring thought leaders on sustainability from both your nonprofit and the brand

This kind of collaboration not only grows your monthly giving base but also creates a long-term partnership with companies that want to give back. It's a win-win.

I wrote about this strategy in my book as a prediction based on the popular entertainment bundles we see every day. (Think Disney+, Hulu & ESPN)

🤝 Who would be your DREAM partner(s) this year or how can you rethink your current partnerships to include expanding your monthly giving program?

🗣️ Another nice post reminder from Becca Chambers on LinkedIn: PR isn’t just about getting your name out there. It’s about influencing how people think, feel, and act—to drive business OUTCOMES. If your metrics don’t reflect that, it’s time to rethink them.

Encourage you to pop over and read Ronnie’s Thinkers Newsletter on LinkedIn post, “The holidays remind us: Savor the past, but live in the now”. He reminds us we’ve got work to do. He talks about how to “sleigh” digital for 2025; why omnichannel is not audience-first, and balancing innovation and tradition.

As always, I’ve been collecting a few articles over the past month and wanted to share them in case you’d like to catch up over your favorite beverage:

1. FEP Data for Q3 2024 Shows More Dollars Coming from Fewer Donors in a Continuing Trend, but GivingTuesday Offers Hope ❣️ 🔑

The Fundraising Effectiveness Project’s 2023’s full year data, released in April, continued to show there were fewer donors giving to and fewer dollars going toward nonprofits. But since then, the quarterly data report has revealed some more promising figures. Q3 2024 saw a 0.9% increase in dollars raised, marking a deceleration in the growth of fundraising dollars observed in previous quarters of 2024. This quarter also saw declines in the numbers of donors (-5.3%) and in donor retention (-4.6%).

Other stats:

The decline in donor numbers is largely driven by low participation from the smallest donor size group (under $100), which saw an -12.4% year-over-year (YOY) decrease, as well as declines in numbers of new donors, who experienced an -11.5% YOY decrease. This underscores the need to incorporate small donor acquisition and retention into wider fundraising strategies.

2024 marks the fourth consecutive year that retention rate has declined YOY in Q3. The drop was most pronounced among smaller donor segments ($1-$100, $101-$500 and $501-$5000), underscoring the need for more effective retention strategies.

Fundraising totals fell in the third quarter for all organizations except for those nonprofits that raised less than $100,000, and between $250,000 and $500,000; they saw their year-over-year fundraising for the third quarter increase by 21.3 percent and 2.8 percent respectively.

Strategic Insights for Year-End Fundraising

Focus on Donor Retention: re-engaging lapsed donors should be a top priority. Implement targeted re-engagement campaigns that feature personalized messaging and compelling impact stories to bring lapsed donors back into the fold.
Identify Opportunities with Small Donors: Understanding the causes for the drop off in small donors is crucial for long-standing declines in donor participation. Renew your approach to reaching out to small donors, through targeted research, personalized communication, and marketing strategies.
Leverage Data for Real-Time Adjustments: Monitoring donor behavior as it happens allows nonprofits to pivot and optimize outreach. Use your database’s dashboards to track performance during the year and be ready to test and adjust strategies based on live donor feedback and engagement levels.

2. Is the New Wave of Donor-Advised Fund Grants the Future Reality of Fundraising? 🙌

Some DAF notes for you:

Chariot introduced their directory of all DAF Providers (nice!)

In 2022, donor-advised fund grants increased by about 9%, with most recent figures showing $55.53 billion granted that year through DAFs. Last year, DAF grants leveled out with a small decrease to $54.77 billion, according to National Philanthropic Trust’s “The 2024 Donor-Advised Fund Report.” New contributions to DAFs also cooled in 2023, as accounts received $59.43 billion, a 21.7% year-over-year drop.

Despite the declines, DAFs still maintain assets totaling $251.52 billion, making it a prime way to get gifts this year end and throughout 2025. In fact, the giving method has reached such great heights that the sector dedicated a giving day to DAFs.

DAFs could represent a significant evolution in fundraising practices:

Engagement of younger donors. Millennials and Gen Z are showing a growing inclination toward impact-driven giving. DAFs align with their expectations for flexible, personalized philanthropic experiences.

Data and technology. Advances in technology allow for more effective tracking of giving patterns and outcomes, which can enhance the appeal of DAFs to a broader audience.

Institutional endorsements. More financial institutions and philanthropic organizations are establishing DAF platforms, lending credibility and encouraging their use.

Philanthropic education. As more people seek to understand effective giving strategies, DAFs provide a structured method for engaging in philanthropy thoughtfully.

3. 15 Compelling Nonprofit Stats From 2024 💹

Every year, NonProfit PRO reports the latest nonprofit data and what it means for your nonprofit. I encourage you to take time to read or scan this article.

Key Points below:

Charitable Dollars Rose 3.7% Through June — the Largest Second-Quarter Jump in 4 Years
Total Giving Surpasses $500 Million for Third Consecutive Year
Half of Nonprofit Leaders Cited Donor Acquisition as a Top Challenge
56% of Nonprofits Don’t Have a Donor Engagement Strategy
New Digital Donors Are 48% More Valuable Than Their Offline Counterparts
Year-End Giving Drops to 5% of Annual Online Revenue
GivingTuesday Breaks Record With 16% Surge in Donations
Volunteer Work Is Worth $33.49 Per Hour
The Rate of Corporate Volunteerism Grew 57% Globally
Nearly Three-Quarters of Nonprofit Collaborations Were Successful
Future Giving Could Rise Up to 4.2% Annually
84% of Gen Zers Support Nonprofits, Charities or Causes In Some Way
At Large Nonprofits, Women Hold 29% of CEO Posts and Earn Less Than Male Counterparts
Nonprofit Salaries Remain Stagnant With Modest 1% Increase in U.S.
Donor-Advised Fund (DAF) Contributions Fall, Though Grants Remain Steady at $56 Billion

4. U.S. Homeless Count Surges 18% to Record High 🏘️

Migrant influx, high housing costs and people displaced by natural disasters fueled the increase. It’s the largest number since the U.S. began publishing comparable data in 2007. HUD said these counts from January may not reflect the current environment, since unlawful border crossings are down significantly since then.

The increase in homelessness also reflects high housing costs, the report said. Pandemic-era bans on evictions ended while rental costs rose in many communities. Since January, HUD said, rents have stabilized or dropped in many cities. The nation’s mental health crisis is a contributing factor. Chronic homelessness, a term for people who have a disability such as mental illness, and are homeless either repeatedly or for long periods, rose 6.6%.

The estimated number of homeless people in the U.S. has reached a record high of 771,480, an 18% increase from last year.

The increase was largely driven by the number of people in temporary shelters.

Despite the increase, there was a 7.6% decrease in homelessness among veterans, thanks in part to a voucher program that helps connect them with rental homes.

SNAP benefits barely increased for fiscal 2025. A family of four began receiving maximum benefits of $975 a month starting Oct. 1, just $2 more than their allotment last fiscal year. In addition, requirements to qualify for SNAP became more stringent. Able-bodied adults ages 52 to 54 without dependents must start proving that they are actively working, training or in school to qualify for the benefit.

Meanwhile, the cost-of-living-adjustment for Social Security will be 2.5% for 2025, a smaller increase than the 3.2% and 8.7% step-ups that seniors saw in 2024 and 2023, respectively. That increase is offset by the increase they will see in Medicare Part B premiums, which will rise to $185 a person a month, up from $174.70 in 2024.

5. Crisis, Climate And Conflict Drove Disaster Philanthropy 🆘

Our friends at Neon One have written an in-depth article worth your time. The article highlights the trends we’re starting to see sector wide as we head into 2025. It quickly becomes clear that the way nonprofits operate, engage and inspire is evolving rapidly. This isn’t about responding to the status quo—it’s about rethinking it. The article provides actionable insights and reflective questions to guide strategy.

Trend #1: The Rise of Values-Informed Fundraising
Trend #2: Integrated Data Is Revolutionizing Donor Relationships
Trend #3: Increasing Challenges in Grants and Impact Reporting
Trend #4: Mid-Level Donors Are More Important Than Ever
Trend #5: Reimagining Events as Community Gatherings

6. 2025 Fundraising Outlook Report Reveals Key Nonprofit Strategies and Priorities 👩‍❤️‍💋‍👨

OneCause, a provider of event and online fundraising technology, has released The 2025 Fundraising Outlook: Nonprofit Trends and Strategies for Success. Based on insights from 977 fundraising professionals, the annual report highlights the successes and challenges nonprofits faced in 2024 and outlines what they're prioritizing in 2025 to continue growing their fundraising efforts and impact.

Key findings include:

Nonprofit challenges and priorities reflect need for engagement and sustainability. Over 85% of nonprofits cite recurring giving, donor engagement, and year-over-year growth as top challenges. In 2025, nonprofits plan to balance donor acquisition (98%) and retention (95%) to drive sustainable growth.

In-person and hybrid events offer strong opportunities for success and engagement. In 2024, 75% of organizations hosting in-person events met or exceeded their fundraising goals, and 76% of those using hybrid models also reached their targets. As we look ahead to 2025, eight in ten nonprofits plan to host in-person events, while a third are planning hybrid events.

Event and online fundraising sustain revenue growth for nonprofits. Event and online fundraising continue to be essential revenue streams for nonprofits, especially those with smaller budgets. In 2024, 66% of organizations with annual operating revenues (AOR) under $1 million raised 21% or more of their AOR from these channels, demonstrating significant impact on financial sustainability.

Adoption of Artificial Intelligence is growing. Nonprofits are increasingly adopting Artificial Intelligence (AI) to enhance operations and fundraising. Half (49%) of organizations are using or planning to use AI for donor management, up 15 points from last year. The proportion of nonprofits who are or plan to use AI for copywriting rose 19 points to 71%, and there was an increase of 28 points to 71% of nonprofits using or planning to use AI for fundraising and event planning.

7. FreeWill webinar: Strategic steps to take for an outstanding 2025 📃✔

Patrick had some great points in his recent webinar. Key points:

The three major trends shaping philanthropy in 2025 are:

The widespread adoption of AI
The Great Wealth Transfer
The rise of Donor-Advised Funds

Bonus trend: The decline of cash giving and the rise of non-cash giving

Strategic steps to take for an outstanding 2025:

Fit AI into your workflow in 2025
Bring your website into the modern age
Teach Millennials how to give big (55% expect to inherit wealth; this means they should have a way to donate crypto, stock, and DAF gifts)
Add your can’t-miss QCD dates to the calendar now (Remember: There is over $14.5T in IRAs); nonprofits that marketed QCDs at least three times were 3.2x more likely to receive 10+ gifts
The 30-minute Planned Giving check-in (see calendar below as part of it)
Create a plan for your small-dollar donors
Promote DAFs as a preferred gift type

8. Report Analyzes Philanthropy Trends Over Two Decades Through a Gender Lens 🧍‍♀️

The Women’s Philanthropy Institute (WPI) at the Indiana University Lilly Family School of Philanthropy released Women Give 2024: 20 Years of Gender & Giving Trends, a comprehensive study exploring how women’s philanthropy has evolved in response to societal and economic changes.

Key Findings Include:

Resilience in Giving: While the “declining donors” phenomenon is true for both men and women from 2000 to 2020, the decline started later and was less pronounced for single women compared to single men.

Adaptability During Crisis: While the average dollar amount given by donor households has been relatively steady between 2000 and 2020, single women’s giving increased overall and to secular causes during the COVID-19 period, compared to single men.

Pandemic-Era Shifts: Single women’s giving participation declined during COVID-19, but their average giving amounts increased. This indicates that women’s giving rates were more resilient prior to COVID-19, and that their giving during 2020 reversed a long trend of single women’s giving declining at a less severe rate compared to single men.

Economic Challenges: Women who lost earnings during the COVID-19 pandemic were less likely to give to charity, appearing less resilient in their giving than single men or married couples who lost earnings during the pandemic.

9. Economic Headlines 📊

Inflation picked up to 2.7% in November, a sign that the path to bringing down price pressures remains bumpy. Focus in the coming week is on Friday’s key monthly nonfarm payrolls data for December.

More than 1.6 million unemployed workers have been job hunting for at least six months. The job market is weakening due to less hiring, but economists warn that widespread layoffs could spark a much faster jump in the unemployment rate. A labor market that looks healthy in the headlines is, under the surface, weaker than it seems. The pain of long-term unemployment is largely in high-paying white-collar jobs, including in tech, law and media. There are still plenty of jobs for people looking for hands-on services work, including in the healthcare and hospitality sectors. The number of unemployed Americans searching for work for at least six months has increased by more than 50% since the end of 2022.

U.S. monetary policy has entered a new phase where interest-rate cuts are contingent on lower inflation or a weaker labor market. The dollar recently hit a two-year high against a basket of currencies and strong economic data would likely lift it further while U.S. Treasury yields could also rise.

The Fed reduced interest rates in December but also lowered its forecasts for future rate cuts. Fed officials expect inflation to be stickier than previously anticipated, possibly because of policy changes. The projections show officials expect to make fewer rate reductions, with most penciling in two cuts for 2025, down from four at their meeting in September.

Hopes were high that the Federal Reserve could make homes more affordable by cutting interest rates. Mortgage rates are rising instead with the average 30-year mortgages now at 6.91% from roughly 6.1% since the Fed started lowering rates in September, according to Freddie Mac. They are poised to rise further because mortgage rates move with the yield on the 10-year Treasury, which is currently at 4.6% with this post.

Insurance and taxes now cost more than mortgages for many homeowners. Insurers have pushed big rate increases because of losses from natural disasters and rising costs to repair homes. Surging home values in recent years have lifted property taxes for many homeowners. In September, 32% of the average single-family mortgage payment went to property taxes and home insurance, the highest rate ever for data going back to 2014, according to Intercontinental Exchange.

While individual stocks like Nvidia, Palantir, and Tesla dominated headlines in 2024, the titanic investment vehicles beneath the surface of the market — exchange-traded funds (ETFs) — quietly had a blockbuster year, too. The Wall Street Journal reports that investors poured over $1 trillion into US ETFs last year through November, pushing their total assets to a record $10.6 trillion. That’s a 30% increase from last year and a more than fivefold surge over the past decade, per data from research firm ETFGI.

10. Visit the RKD Resources Website Page for some great posts, podcasts and webinars 🧐

Blog updates:

RKD Group Thinkers Monthly LinkedIn Update:

Podcast updates:

Benchmarks

eBooks and Research:

Cheers to balancing your work and personal life in 2025! Not only should you celebrate your professional successes, but revel and celebrate those personal, intentional and quality experiences you had in 2024.

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