The Future of Fundraising: Navigating Change, Technology and Donor Behaviour in 2025

Fundraising doesn’t exist in a vacuum. Today’s fundraisers must stay plugged into the latest economic shifts, respond to cultural trends and anticipate the needs of an ever-evolving donor base. In 2025, the sector faces both significant challenges and exciting opportunities, as charities adapt to a changing landscape and innovate to maintain public support.

Economic Pressures and the Cost-of-Living Crisis

The charity sector continues to feel the strain of rising costs, recruitment challenges and skills shortages. In 2024, one in five charities reported reducing the number or scope of services they offered due to these pressures. Meanwhile, the UK has fallen out of the Top 20 most generous countries globally, with fewer people donating, volunteering or helping strangers.

Despite these challenges, there is optimism: more than half of the public reported in summer 2024 feeling the same or slightly better off than previously and 78% intended to donate in the near future (Enthuse, 2024). Public trust in charities remains high, reinforcing the importance of strategic fundraising.

Digital Fundraising and the Role of Technology

The pandemic accelerated the shift toward digital giving. Before COVID-19, 51% of donations were made in cash; by 2021, this dropped to 29%, rising slightly to 35% in 2022 (CAF). Online donations via websites and apps grew from 20% pre-pandemic to 26% in 2022.

However, many charities remain behind in digital adoption: 41% reported being “poor” at digital fundraising, and 25% did not fundraise digitally at all (Charity Digital Skills Report, 2024). Increasing digital fundraising is a top priority for over half of charities in 2025, opening opportunities to embrace innovations like AI. Interestingly, 61% of charities are now using AI in operations, and 19% employ AI for grant fundraising. This is particularly prominent among grant-making trusts, where 83% use AI tools.

The Changing Donor Landscape

The UK Giving Report 2025 highlights a continuing decline in donor numbers, with only 50% of people donating or sponsoring in the past year (CAF, 2025). The decline is most pronounced among young people, with only 36% of 16-24-year-olds donating or sponsoring, down a third since 2017. Regional differences are notable: London, the North West, and the North East have seen the largest drops, while Wales has remained relatively resilient.

Neil Heslop OBE, CEO of the Charities Aid Foundation, emphasises the need to revitalise Britain’s culture of giving: “We need to write a new chapter in Britain’s giving story. Revitalising our culture of giving will help to build a more connected, more generous and more resilient society for all of us in the future.”

Trends in Fundraising Events

Fundraising events remain crucial for engagement and income. In 2024, 53% of charities expected growth from events, with smaller community activities like bake-offs and pub quizzes being most common (78%), alongside mass-participation events such as fun runs and marathons (70%). Younger generations are highly engaged: 61% of under-40s expect to attend charity events, with preferences differing by gender and activity type.

High-profile events such as Comic Relief’s Red Nose Day (£34 million raised in 2023) and Cancer Research UK’s Race for Life (£22.4 million) continue to inspire wide participation. Meanwhile, new models like “gaming for good” are emerging, combining creativity, online streaming and donor interaction, allowing charities to tap into the £7 billion UK gaming industry.

Charity Shops and Retail Innovation

Physical charity shops still dominate fundraising, generating £363 million annually and employing 26,000 people (Charity Retail Association, 2024). Yet online charity shops are gaining traction, hosted on platforms such as eBay, Depop, and ASOS Marketplace. Trends in 2025 may see more pop-ups and collaborations with fashion brands, blending retail, fundraising and brand awareness.

Looking Ahead

Fundraising in 2025 is a balancing act. Economic uncertainty, changing donor behaviour, and evolving technology present challenges, yet there is also room for creativity, innovation and impact. Digital fundraising, AI and new engagement strategies, such as gaming streams and community-focused events, offer exciting pathways.

As Neil Heslop notes, revitalising giving across all age groups is essential. By embracing trends, understanding donor behaviour and experimenting with creative approaches, fundraisers can write a new chapter in the UK’s giving story, one that ensures charities remain resilient, impactful and connected to the communities they serve.

Want to take your fundraising to the next level? Merrifield Consultants can connect your charity with the right talent and strategies to maximise impact. Get in touch with us today.

Sources:

Enthuse, CAF, Charity skills report & Charirty retail association