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Total giving keeps rising because larger gifts from fewer households cover the gap, while small and mid donors leave faster than they are replaced. The exposure is concentration risk. Protect against it by measuring donor counts and retention alongside revenue, and by funding acquisition even in years when the revenue line looks healthy.
Key Takeaways
- 1Overall giving grew an estimated 5.0% in 2025, the strongest revenue growth in five years, with Q4 carrying most of the lift.
- 2Donor counts fell an estimated 3.6%, the fifth consecutive year of decline, though the rate of decline has been slowing since 2022.
- 3Growth was driven almost entirely by Major and Supersize donors, whose count and dollars both rose, potentially aided by record Q4 stock market performance.
- 4Overall retention edged up from 43.1% to 43.3%, but new donor retention remained essentially flat, the sector's most persistent unsolved problem.
- 5The FEP Q4 2025 dataset covers 7.8 million donors, $13.2 billion in giving, and 15,102 organizations.
- 6Converting one-time donors to monthly giving lifts retention to 80% to 90%, roughly double the sector average.
On the surface, the latest fundraising data suggests a sector in recovery. Overall giving grew an estimated 5.0% in 2025, the highest growth rate in five years, according to the Fundraising Effectiveness Project Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited.. For leadership teams focused only on the bottom line, this looks like a clear win.
Look closer and the picture is more uneven. That 5. 0% was weighted heavily toward the end of the year, per the FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited..
Giving was up 3. 7% through Q3, per the FEP dataSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., meaning an exceptionally strong Q4 lifted the full-year figure. Meanwhile, the number of donors fell an estimated 3. 6% in the same datasetSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., extending a decline that began in 2021 into its fifth consecutive year.
This is the "Dollars Up, Donors Down" paradox. Major gift concentration masks a thinning foundation. We must ask if the 5.0% growth in the FEP dataSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. is a sustainable recovery or a small group of large gifts hiding a deeper erosion of the donor base.
The "Hollowed-Out" Success Story
A 5. 0% jump in total giving is a "hollowed-out" success. It breaks a multi-year revenue slump, but the growth is not fueled by a broad movement of supporters.
According to the FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., growth was driven almost entirely by Major and Supersize donors. This surge was likely aided by record stock market performance in Q4, which encourages large donors to give appreciated assets while values are high.
The result is a sector that looks healthy at the top while becoming exposed underneath. When revenue is tied to a small number of relationships sensitive to market conditions, top-line growth can be deceptive.
The Major Donor Dependency Trap
Revenue concentration at the top of the pyramid is now a structural risk. The FEP Q4 2025 datasetSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., covering 7.8 million donors and $13.2 billion in giving across 15,102 organizations, shows growth driven by segments that already give the most. In economic downturns, large donors historically pull back; overreliance on this segment undermines resilience.
"Overall giving increased by 5.0%, but that growth is being carried by a smaller group of major donors while the total number of donors continues to decline. The result is a sector that can look healthy at the top line while becoming more exposed underneath." , FEP Q4 2025 Strategic InsightsSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited.
This calls for a steady effort to broaden participation while deepening existing relationships. For smaller organizations, this means staying close to the community with visible ways to take part. For larger organizations, it requires balancing major donor revenue with engagement that keeps a wider base active.
The First-Time Donor Conversion Problem
Retention in the FEP Q4 2025 dataSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. tells a split story. Overall retention edged up from 43.1% to 43.3% in the FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., but new donor retention remained flat or slightly negative. FEP identifies this as the sector's most consequential problem: converting a first gift into a second.
The sector retains the donors it already knows but fails to connect with those it has just met. Acquisition campaigns without a deliberate second-gift strategy are effectively renting donors. Designing a donor journey that converts is the difference between long-term growth and quiet collapse.
The Donor Base Decline Is Slowing, Not Reversing
There is one encouraging signal. The 3.6% decline in donor counts, per FEPSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited., is the fifth year of a slide, but the rate of decline has slowed since 2022. This is an inflection point rather than a recovery, and it is the most important trend to watch in 2026.
Whether this deceleration reflects better stewardship or simply a smaller remaining pool to lose, the strategic implication is clear. Organizations that hold on to current donors will be in a stronger position than those waiting for acquisition to refill the funnel.
The Demographic Disconnect
The sector faces a significant demographic disconnect. The average age of a repeat donor is in the mid-60s. For decades, Baby Boomer fundraising tactics like traditional direct mail have been the gold standard. These methods are not resonating with Gen X, Millennials, and Gen Z at the same rate.
As we approach a looming wealth transfer estimated by Cerulli Associates at $84 trillion through 2045, reaching younger generations is mandatory. These segments represent the future of philanthropy. If we do not adapt to their preference for digital engagement, we risk a permanent disconnect. Our guide to thinking like an SEO marketer is a practical starting point for meeting younger donors where they are.
Mid-Level Donors Are Still the Best Growth Opportunity
FEP Q4 2025 insightsSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. highlight mid-level donors as a reliable segment for long-term engagement. These donors stay involved more consistently than lower-level givers and are more likely to deepen their participation over time.
For smaller organizations, engagement happens through direct contact and shared context. For larger organizations, it requires intentional pathways that create a sense of community at scale, connecting donors to the work and to each other.
The Monthly Giving Antidote
Recurring giving is the best defense against flat retention. While one-time retention stagnates, research compiled by Network for Good and NextAfter's monthly giving benchmark study shows that monthly supporters can reach retention rates of 80% to 90%. That doubles the sector average.
To act on the FEP Q4 2025 data, shift from transactions to loyalty. Use the Fundraising Fitness Test provided by AFP and FEP to see how your organization compares to these trends.
Action tips for your strategy
Beyond the Numbers
The landscape is uneven, but the philanthropic instinct remains intact. Research from the Indiana University Lilly Family School of Philanthropy indicates that the vast majority of Americans are inherently generous.
The "Dollars Up, Donors Down" trend is a wake-up call to measure success by the health of the community, not just the spreadsheet. Before your next campaign, ask if you are mining a donor base for transactions or cultivating a community that will sustain your mission for decades.
Frequently Asked Questions
QWhat does the FEP Q4 2025 report actually say?
The FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. shows overall giving grew an estimated 5.0% in 2025, the sector's strongest revenue growth in five years, with Q4 carrying most of the lift. At the same time, the donor base fell an estimated 3.6%, the fifth consecutive year of decline, and overall retention edged up only slightly from 43.1% to 43.3%. The dataset covers 7.8 million donors, $13.2 billion in giving, and 15,102 organizations.
QWhere is the 2025 growth actually coming from?
Almost entirely from Major and Supersize donors, whose count and dollars both grew. The FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. notes the strong Q4 was potentially aided by record stock market performance during the quarter. The strategic risk is concentration: when revenue growth depends on a small group of large gifts that are sensitive to market conditions, top-line growth can disguise continued erosion in the broader donor base.
QIs the donor base decline finally turning around?
Not yet, but the trajectory is improving. Donor counts fell 3.6% in 2025, extending a five-year slide, but the rate of decline has been slowing since 2022. The FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. describes this as a possible inflection rather than a recovery, and the most important trend to watch in 2026. Whether it reflects structural improvement or simply a smaller pool to lose from is a question the next several quarters will answer.
QWhy is new donor retention still the sector's biggest problem?
Because overall retention is being lifted by repeat donors while new donor retention remained essentially flat in 2025. The FEP Q4 2025 reportSource 1: Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report. Primary source for the 2025 giving, donor, and retention figures cited. calls converting a first gift into a second 'the most consequential unsolved problem in the donor pipeline.' Organizations retain the donors they already know, and acquisition without a deliberate second-gift strategy effectively rents donors rather than building a base.
QWhat is the single highest-leverage intervention right now?
Converting one-time donors to monthly giving. Monthly retention rates run 80% to 90%, according to Network for Good and NextAfter, compared to the sector average of around 43%. A second-gift ask framed as 'become a monthly partner' is the cheapest, fastest way to stabilize revenue without acquiring a single new donor.
QHow do I benchmark my own organization against these trends?
Use the Fundraising Fitness Test from AFP and the Fundraising Effectiveness Project. It scores your retention, acquisition, upgrade, and reactivation metrics against sector benchmarks so you can see exactly where the leaks are, rather than relying on top-line revenue as your only health indicator.
Evidence
Every statistic and study referenced above links to its primary source. Each entry has a stable anchor, so citations stay consistent over time.
- 1Association of Fundraising Professionals, Fundraising Effectiveness Project Q4 2025 Report — publications.fepreports.org
Primary source for the 2025 giving, donor, and retention figures cited.
- 2Giving USA Foundation, Annual Report on Philanthropy — givingusa.org
Sector-wide context for total giving trends.
- 3Indiana University Lilly Family School of Philanthropy, Philanthropy Panel Study — scholarworks.indianapolis.iu.edu
Research on donor participation trends and household giving.
- 4
- 5Blackbaud Institute, Charitable Giving Report — blackbaud.com
Cross-cutting sector data on giving levels and channel mix.
- 6Fidelity Charitable, Overcoming Barriers to Giving — fidelitycharitable.org
Research on donor-side drivers of participation decline.
- 7NextAfter, Monthly Giving Benchmark Study — nextafter.com
Data on recurring donor retention rates versus one-time donor retention.
Related questions
About the author and our standards
Founder & CEO, SA Philanthropy
Sarah Ali is the founder and CEO of SA Philanthropy, helping mission-driven organizations raise more and scale their impact.
This article was reviewed by the SA Philanthropy editorial team before publication. We source every statistic, name every author, date every update, and correct errors on request. Read our editorial policy.
