Wiland Blog

Entering 2025, nonprofit organizations face many challenges that demand innovative solutions and more intelligent strategies. From leveraging donor data analytics to optimizing donor predictive modeling, nonprofits seek ways to stretch limited resources while fostering stronger donor relationships. Here, we’ll explore the biggest challenges facing nonprofit fundraising this year and how data-driven strategies can help tackle them head-on.

1. Donor Advised Funds: Cracking the Code

Donor Advised Funds (DAFs) are a growing force in philanthropy, accounting for over $50 billion annually in donations. Yet, for many nonprofits, these funds remain a mystery. Without actionable insights, it’s hard to predict or cultivate these gifts effectively.

The Opportunity:

Most data solutions rely on demographic or housefile data, offering limited visibility into donor behavior. By going beyond demographic data and static wealth indicators, nonprofits can uncover actionable insights into donor behaviors that predict DAF giving.

The Solution:

A robust donor predictive modeling approach built on real spending data can uncover transactional behaviors and prioritize donors likely to make significant contributions through DAFs, enabling targeted, effective outreach.

2. Static Budgets Amid Rising Costs

With the cost of paper, postage, and digital advertising increasing, nonprofits face the challenge of doing more with less. While financial constraints are real, they also encourage nonprofits to embrace precision strategies that maximize impact.

The Opportunity:

The best fundraisers adapt to a changing fundraising climate, even with limited resources. Budget tension can lead to real innovation through improved targeting, audience optimization, and true omnichannel strategy.

The Solution:

Advanced nonprofit fundraising solutions, like donor data analytics, can optimize outreach by identifying donors most likely to increase their gift frequency or size. Nonprofits can boost ROI even in resource-constrained environments by focusing efforts on high-potential segments and optimizing low-potential segments.

3. The Decline of Low-Dollar Donors

The donor landscape is becoming increasingly top-heavy, with fewer small-dollar donors supporting the cause. This creates pressure to cultivate relationships with major and mid-level donors while rethinking acquisition strategies.

The Opportunity:

Traditional approaches often result in over-contacting low-value donors, wasting resources and creating donor fatigue. With smarter targeting, fundraisers can ensure every outreach effort is intentional and maximizes valuable donor relationships.

The Solution:

Cooperative databases for nonprofits can help pinpoint donors with the highest potential for increased engagement, ensuring marketing dollars are spent where they’ll have the greatest impact.

4. Limited Resources Demand Efficiency

Maximizing impact with limited resources requires precision targeting. Whether it’s identifying seasonal donors, potential sustainers, or those ready for a major gift, nonprofits need more innovative tools to guide their strategies.

The Opportunity:

One-size-fits-all campaigns no longer cut it. Nonprofits must segment and prioritize donors based on their likelihood to give and the timing of their giving. Great tools drive great fundraising, and correctly prioritizing campaign spending can drive breakthrough fundraising.

The Solution:

Tools like donor data append provide critical insights into donor behavior, such as seasonal giving patterns and propensities for monthly contributions. These tools allow nonprofits to fine-tune their strategies, mailing donors less frequently during low-response periods and focusing efforts during peak giving seasons.

5. Understanding Share of Charitable Wallet

Knowing where your organization stands in a donor’s overall charitable priorities is critical for cultivating loyalty and increasing giving.

The Opportunity:

Insights into a donor’s broader giving patterns and priorities give fundraisers opportunities to deepen relationships and identify the potential for increased giving.

The Solution:

Share of charitable wallet data empowers nonprofits to see how their donors prioritize them compared to other organizations, enabling tailored engagement strategies that foster long-term loyalty.

6. Growing Monthly Sustainer Programs

Monthly giving programs provide reliable revenue streams, yet many organizations struggle to identify which donors will most likely commit to recurring donations.

The Opportunity:

Targeting all donors for sustainer campaigns is inefficient and can dilute resources. With the right tools, nonprofits can identify and inspire donors most likely to commit to monthly giving, building sustainable revenue streams.

The Solution:

Predictive modeling built on vast second- and third-party transactional data identifies donors with a high likelihood of becoming monthly sustainers, allowing nonprofits to focus on cultivating these valuable relationships.

7. Personalizing the ask

Knowing how much to ask for is both an art and a science. Asking for too little leaves money on the table, while asking for too much risks alienating donors.

The Opportunity:

Making better ask strings that are tailored to a donor’s giving patterns maximize giving potential while nurturing donor satisfaction and retention.

The Solution:

Data-driven optimal ask string strategies use transactional data to suggest personalized ask amounts, maximizing giving potential while maintaining donor retention.

8. Cultivating Major and Mid-Level Donors

Major donor programs often rely on wealth screening tools that focus on net worth but fail to consider philanthropic behavior.

The Opportunity:

What if fundraisers could learn more about prospects’ total philanthropic behavior? Net worth matters but doesn’t tell the whole story.

The Solution:

Donor predictive modeling incorporating transactional data provides deeper insights into donor motivations, helping organizations identify and cultivate donors with the most significant potential to make transformational gifts based on existing philanthropic behavior

9. Planned Giving Potential

A planned gift represents the largest gift most donors will ever make, yet many nonprofits struggle to identify and engage the right prospects.

The Opportunity:

Cultivating the right planned giving prospects for years with predictive insights can improve program efficiency and maximize these valuable, loyal donor relationships.

The Solution:

Behavioral data analysis identifies donors most likely to include your organization in their estate plans, allowing planned giving officers to prioritize their outreach and build meaningful relationships.

2025: The Year of Smarter Fundraising

Data-driven fundraising is not a new idea, but fundraising in 2025 demands better and more specialized strategies than ever before. Organizations can overcome challenges and maximize their impact by leveraging tools like donor data analytics, predictive modeling, and cooperative databases for nonprofits.

Success lies in selecting tools that are actionable, cost-effective, and tailored to your unique needs. By focusing on smarter strategies and better data, nonprofits can navigate 2025’s challenges and thrive in a competitive philanthropic landscape.

Ready to tackle 2025’s fundraising challenges with confidence? Discover how GivingSignals^TM by Wiland can provide the actionable insights your nonprofit needs to grow donor engagement, optimize fundraising strategies, and achieve lasting success. Contact us to learn more and take the first step toward smarter, data-driven fundraising.