Blog

By Gary Laermer and Kali Righter

The latest Fundraising Effectiveness Project data (Q4 2025), reveals overall giving is up 5% in 2025, which is a very encouraging signal. But that growth is being driven by a smaller group of donors, as the total number of donors continues to decline.

It’s not the plan that gets tested first.

It’s the story.

You know that moment in Elton John’s Your Song where the singer admits he doesn’t have much, but still offers the song because it’s the most honest thing he has to give?

That’s what I’ve been thinking about lately in conversations with nonprofit leaders. The ability to say, simply and clearly: this is who we are, and this is why it matters.

In seasons of pressure, that kind of clarity of story matters, sometimes more than anything else.

Mid-level giving (often defined as gifts in the ~$250–$10,000 range, varying by organization) is increasingly becoming the make-or-break layer between broad-based annual giving and major gifts.

Many of you are likely facing reduced donor counts and struggling retention rates, even though your total dollars raised is holding steady or growing. This means you may be becoming more dependent on fewer donors. And you are not alone as shown in reports published by the Fundraising Effectiveness Project (FEP) that illustrate this dynamic trend.

Nonprofit boards carry enormous responsibility. They safeguard mission, ensure financial integrity, support executive leadership, and steward an organization's future. Yet one of the most important investments a board can make—a strong, intentional board orientation—is often treated as an afterthought or a box to be checked.

I had the opportunity to learn how Disney “onboards” its new cast members. Disney understands something profound about organizational culture: it begins on day one, and it begins with everyone. At its theme parks, every new cast member, regardless of role, begins their journey at Disney University.

Executives sweep streets alongside aspiring entertainers. Future operations leaders work the same orientation sessions as seasonal staff. This isn't about theater. It's about something far more strategic: building a shared foundation of values, language, and culture that unites everyone who represents the brand. The message is clear: You are part of something bigger than your individual role, and we will equip you to uphold it.

You’ve finished your meal at a restaurant and you’re ready for the check. But your server is nowhere to be found.

You glance toward the kitchen and see them flipping burgers on the grill. A moment later they rush past carrying a stack of dishes. Then they stop at the door to seat a new table before disappearing again.

Meanwhile, you’re still sitting there with an empty glass and no check.

At some point, most of us would recognize the problem isn’t bad service. The problem is that one person is trying to run the entire restaurant.

Yet this is exactly how many nonprofits structure fundraising.

“I need my volunteers to fundraise more.” I hear this often from nonprofit leaders around the country. My response is usually a series of questions to dig deeper into what they are really saying.

Would bringing in more cash (yesterday) be nice? Of course. Could every board member please fill a table at the gala? Yes. (And a table means ALL the seats, by the way).

But what’s really at the heart of what “I need my volunteers to fundraise more” is a need for connections to the organization. Fundraising is a relational journey, from identifying prospects to stewarding donors, and volunteers play a critical role from the very beginning.

There’s always a beautiful moment when a significant gift is finalized. The commitment is made. The vision moves forward. The campaign number goes up! The excitement is real.

Recently I listened to a webinar filled with statistics.

• Repeat donor retention was down.

• New donor retention was down.

• Lapsed donor recapture was down.

(I was relieved to see overall giving is up slightly! Yay!)

The news made me think about what we can do to change the trajectory of the numbers and build operational security for our organizations.

The answer is stewardship. Intentional, meaningful stewardship can create lifetime donors with a strong attachment to our mission and cause.

Are your capital projects connected to your strategic priorities?

Let’s consider a new dining hall project at a resident camp. Is this project strategic, or simply reactive to growth in campers or the declining state of the building? This example drives home the importance of using a strategic framework to guide capital projects. Too often, nonprofits begin with a perceived need rather than a strategic imperative.

Capital planning and master planning for facilities flow from strategy… not the other way around.

In our twenty years as a firm, we've seen changing economic conditions, changing laws and changing donor behavior. Today, there are even more changes at hand that will provide both challenges and opportunities for savvy nonprofits.