The latest numbers are out and it’s not looking good.
According to the latest data from the Fundraising Effectiveness Project, nonprofits continue to face a concerning decline in donors — even as total dollars raised ticked upward. The Q4 2024 report, which aggregated data from over 12,000 nonprofits and 6.7 million donors, found a 3.5% increase in fundraising dollars — but a 4.5% decline in the number of donors compared to 2023. Nonprofit Quarterly
Here’s why that’s a problem. More dollars from fewer donors means your organization is becoming dangerously dependent on a shrinking pool of larger gifts. Major and supersize donors now make up just 3% of total donors — but nearly 78% of total dollars given. NonProfit PRO That’s not a sustainable fundraising model. That’s a house of cards.
The number of donors has now dropped for the fourth consecutive year. Nonprofit Quarterly
And the grassroots giving picture is even more troubling. Smaller donors giving $1–$100 showed the sharpest decline at -8.8% — even as they make up 50.8% of total donors. Association of Fundraising Professionals These are your community donors. Your neighbors. Your loyal, year-after-year supporters. Your legacy donors. And they’re disappearing.
The average donor retention rate in the nonprofit sector has now dropped to 42.9% — a 2.6% year-over-year decline.
The new donor picture is equally alarming. The number of new donors fell 7% from 2023, and those donors gifted 2.5% less in fundraising dollars. Nonprofit Quarterly And if you’re counting on those new donors to stick around? Only 19.4% of new donors gave again the following year. That means 4 out of 5 first-time donors never come back. Neon One
The decline in donors is always a cause for concern. Your overall focus in fundraising should always be general operating support. After all, unrestricted funding is what enables leaders to lead best. Growing your individual giving program — and that includes all donors — builds a truly sustainable giving model. And reduces your dependency on economic forces that cannot be controlled.
As always, the Fundraising Effectiveness Project report is a wake-up call. Nonprofit organizations need to focus on broad, grassroots support more than ever. Because, while the data is alarming, there’s also an incredible opportunity to take action to improve your donor retention rates and acquire new donors.
When you adopt time-tested strategies and systems, focusing on building lasting relationships with donors, you can overcome the challenges presented by the decline in donors and donations.
How can you turn this tide?
Focus on your fundraising systems, including:
Have a plan for new donors. A donor is not a donor until they make a second gift. Download the New Donor Timeline and make a plan in your organization for acquiring that second gift.
Focus on donor communications. Your donor comms are the engine behind your fundraising program. The stronger and more donor-centered your donor communications, the more powerful your fundraising program. Aim to be your donor’s favorite charity.
Prioritize monthly giving. The average recurring donor gives nearly $950, is retained at a rate of 78%, and sticks around for an average of eight years. Sustainer programs provide predictable cash flow and create a more engaged donor base. Subscribe to Erica Waasdorp’s weekly newsletter so you’re always focused.
Monitor your donor retention. Keep your donor retention numbers front and center. Aim for 60% and higher. Donor databases like Bloomerang feature an excellent dashboard, so you’ll always know where you stand with your donors.
Invest in Fundraising. The nonprofit sector seems to make a mantra out of biting their nose to spite their face. Because what’s the first thing many nonprofits do when facing economic uncertainty? Cut fundraising staff of course.
Your organization will thrive when you make a commitment to the processes of fundraising — and when you invest in your donors.
Invest in your donors, and, while you’re at it, invest in the training necessary to build your fundraising systems.
Updated April 8, 2026.
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