Your 2025 strategy: How to turn challenges into digital fundraising wins
This article was initially published on Fundraising & Philanthropy Magazine.
Economic pressure saw a continued rise in the cost of living and a decline of discretionary spending for Australians this year. This meant that giving to charity decreased a further -6% (CommBank IQ, 2024) and 29% of charities reported not hitting their fundraising targets (Blackbaud, 2024).
Yet those that hit (or even exceeded) their revenue targets had some noticeable similarities – they invested further into their capabilities and resources, they focused on new donor acquisition and giving portfolios that were growing, and leant into retention and growth focused activity (Blackbaud, 2024).
As we turn the page on 2024 and head into 2025, it’s a great time for charities to consider how best to plot a path that mitigates the prevailing headwinds while harnessing emerging trends.
Ongoing economic and political uncertainty means donors are still cautious, but they have high intent to give when things ease
Despite high intention to give according to our latest donor sentiment research, Australian donors are still feeling the pinch. The ‘squeezed middle’ – those aged 35-55 – are finding it tough with rising living costs and stagnant wages (Commbank IQ, 2024), limiting their ability to give now and into early 2025. Meanwhile, international instability could have a negative impact on share prices – a driver of Boomer & Builder wealth.
The good news is that there are plenty of signs to show we can expect a drop in interest rates following cuts in the US, Europe, and New Zealand. Research shows Australian donors intend to give when they are able, especially NextGen Donors (26% saying they intend to donate more this Christmas, compared to 15% of Traditional Donors). It just might take some time before we see interest rates cut and an increase in disposable income.
Source: ntegrity Donor Sentiment Survey, 2024
Strategic recommendations:
1. Be always-on and ready for when NextGen Donors are able to give
Having your charity remain visible on digital throughout the year is key, even in economic downturns. As shown here searches for ‘donate’ related terms stay strong all year, meaning there’s plenty of demand to tap into.
Source: Google Internal Data
Using Google Grants, Paid Search, Paid Social and SEO throughout the year to target donors (and not just during campaign season) will ensure you have already engaged and connected with your target audience, so you’re top of mind when they are able to give once more.
Plus, running always on digital helps you to test, get insights to optimise your big campaigns, helps feed your algorithm with higher quality donor data and build new audiences, and can be a more cost-effective way to reach people than during peak times.
The cost of digital advertising might be increasing, but digital is the #1 preferred channel to discover, research, and give for all age groups
The digital ad space is getting more crowded and expensive – media costs rose 8.4% last year – and privacy updates are making audience targeting tougher. With more organisations competing online, standing out and driving fundraising conversions takes dedicated investment and sharper strategies.
Still, digital channels (email, SMS, and online) remain the fastest-growing, with income via digital increasing by 66% in the past five years, and older audiences are driving part of this growth.
Source: Think With Google
Seniors over 65 are becoming tech-savvy and Google found that 86% of those 55+ are ‘digital seniors’, spending over six hours a day online – juggling an average of five devices.
So, your digital budget isn’t just for reaching younger donors anymore – it’s for everyone.
Strategic recommendations:
1. Stand out and cut-through
As competition increases on digital, so does the need to stand out and cut through. Relying on transferring your DM pack to digital is a good start but often doesn’t deliver the strongest results. Nor can digital only be used for direct response (conversion). Digital works amazingly to prime donors and build demand.
To stand out, lean into emotion, real stories or social media trends to make your cause authentic and relatable. Partnering with trusted ambassadors can also boost credibility and amplify your reach.
2. Focus on brand response
Donors are looking for causes that resonate with them. It’s time to move beyond one-off campaigns and focus on ‘brand response’ – a consistent, compelling story that makes people feel part of something bigger.
Source: World Vision Australia channels & agencies
Build a narrative that captures your cause’s heart and share it across every channel your donors use. Take inspiration from World Vision’s 1,000 Voices for 1,000 Girls campaign, which dominated online and out of home this year and helped build an owned audience of almost quarter of a million on TikTok.
NextGen donors are increasing in wealth and giving potential, and they have different expectations and preferences
Source: McCrindle, 2023
As the intergenerational wealth transfer is already underway from Boomers – Millennials (1981–1996) and Gen X (1965–1980) are emerging as key players, now holding 28% of national wealth (McCrindle, 2023).
Their influence extends beyond donations – they’re active volunteers, advocates, and cause promoters (Blackbaud, 2024). But remember, they have different expectations – they expect transparency, impact, and alignment with their values.
Strategic recommendations:
1. Make giving easy
Your digital presence is the backbone of your donor’s journey. Whether a first-time donor or a corporate partner, your platforms need to be optimised for conversion – be transparent with how their donations are being used and make giving easy.
2. Every touchpoint should drive conversion
Simplify forms to reduce drop-offs.
Offer flexible payment options like PayPal and Apple Pay.
Prioritise regular gifts with clear impact messaging.
Optimise for mobile – over 50% of traffic is mobile.
Use clear, action-oriented CTAs.
3. Be a content hub
Donors are doing more research, so make it easy for them. Be a content hub – share impact videos, testimonials, and behind-the-scenes content to build trust. With transparency and strong CTAs, you’ll create an experience that not only makes donors feel good, but compels them to act. See Breast Cancer Trial’s impact page for an excellent example.
Navigating 2025 with confidence
With all its challenges and opportunities, 2025 is your chance to reimagine how you connect with donors, share your impact and future-proof your mission. Focus on staying visible, building trust with a resonant brand story, and optimising your digital presence to better connect and convert your target donor audience. We look forward to seeing your not-for-profit leverage the power of digital – turning 2025’s challenges into a year of growth, resilience and impact.