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Key Takeaways

  • Donor retention demands urgent attention – Only 19% of first-time donors return to give again, creating an expensive acquisition treadmill that drains resources from mission-critical programs
  • Efficiency benchmarks separate top performers – Best-in-class organizations spend $0.20 or less to raise each dollar, while struggling non-profits exceed $0.35 per dollar raised
  • Revenue concentration creates vulnerability – Just 3.1% of donors now account for 77.7% of total fundraising revenue, making diversification essential for long-term sustainability
  • Technology adoption gaps persist – Only 24% of non-profits have AI policies in place, while organizations with budgets above $1 million report nearly double the technology adoption rates of smaller peers

The State of Charitable Giving in 2024-2025

1. U.S. charitable giving reached $592.50 billion in 2024

American philanthropy achieved a significant milestone in 2024, with total charitable contributions reaching $592.50 billion—a 6.3% increase from the previous year. When adjusted for inflation, this represents 3.3% real growth. Strong stock market performance fueled donor generosity. Non-profits that effectively track contributions through integrated financial systems gain significant advantages in donor stewardship and strategic planning. Source: Giving USA 2025

2. Individual donors contributed $392.45 billion, representing about two-thirds of total giving

Individual giving remains the cornerstone of charitable support, accounting for two-thirds of all donations in 2024. This concentration underscores the critical importance of donor relationship management and personalized engagement strategies. Non-profits using NetSuite CRM capabilities can segment donor bases, track giving histories, and create targeted communications that strengthen individual relationships while reducing manual data management. Source: Giving USA 2025

3. Corporate giving grew 9.1% to $44.4 billion—the fastest growth among major sources

Corporate philanthropy emerged as the fastest-growing segment in 2024, expanding 9.1% to reach $44.4 billion. This acceleration reflects businesses increasingly integrating social responsibility into core strategies. Non-profits positioned to capture corporate partnerships need sophisticated financial reporting capabilities to demonstrate impact and accountability—requirements that enterprise resource planning systems address. Source: Giving USA 2025

4. Global giving reached $2.3 trillion including remittances

The global philanthropic landscape continues expanding, with worldwide giving reaching $2.3 trillion in 2024. This figure includes $1.5 trillion in individual donations and $905 billion in remittances (money sent to families in other countries). Organizations operating internationally require financial systems capable of managing multi-currency transactions, global compliance requirements, and centralized reporting across geographic boundaries. Source: GivingTuesday

The Donor Retention Crisis

5. Overall donor retention rate fell to 42.9%—the fifth consecutive year of decline

Non-profits face an escalating retention crisis, with overall donor retention dropping to just 42.9% in 2024. This marks the fifth consecutive year of declining retention rates, creating a perpetual acquisition treadmill. The cost of acquiring new donors far exceeds retaining existing supporters, making retention improvement one of the highest-ROI investments available to fundraising teams. Source: FEP PQ4 2024

6. Only 19% of first-time donors gave again in 2024

Perhaps the most alarming statistic: just 19% of first-time donors returned to give a second gift in 2024. This means organizations lose more than four out of every five new donors they work to acquire. Effective welcome series, timely acknowledgments, and personalized stewardship touchpoints—all automated through NetSuite workflows—are essential to improve these outcomes. Source: EverTrue

7. Existing donor retention reached 69.2%

While first-time donor retention disappoints, organizations demonstrate much stronger performance with established supporters. Existing donors showed 69.2% retention in 2024, proving that once donors develop giving habits, they maintain them. This gap highlights the importance of converting first-time givers into repeat donors through systematic engagement strategies and consistent communication. Source: FEP PQ4 2024

8. Donor participation declined 4.5% year-over-year

Beyond retention challenges, the total number of donors continues shrinking. Donor participation fell 4.5% year-over-year in 2024, continuing a troubling multi-year trend. Fewer people are choosing to give, even as those who do give often increase contributions. This concentration creates significant risk exposure for organizations overly dependent on a narrow donor base. Source: Chronicle of Philanthropy

9. Micro donors ($1-$100) declined 11.1% in Q1 2025

Small-dollar donors are disappearing at an alarming rate, with micro donors in the $1-$100 range declining 11.1% year-over-year in Q1 2025. This segment represented 57% of all donors but contributed only 1.6% of total revenue. While their financial impact appears minimal, these grassroots supporters often become major donors over time and provide essential advocacy support. Source: AFP Global FEP Report

10. 56% of non-profit leaders report their organizations lack donor engagement strategies

More than half of non-profit organizations operate without formal donor engagement strategies. This strategic gap helps explain poor retention rates and declining participation. Organizations implementing systematic donor engagement through automated touchpoints, personalized communications, and data-driven segmentation consistently outperform those relying on ad-hoc approaches. Source: printing.org

Fundraising Efficiency Benchmarks

11. BBB standards require fundraising costs below 35% of contribution revenue

The Better Business Bureau establishes that fundraising expenses should not exceed 35% of contribution revenue. Organizations exceeding this threshold risk donor scrutiny and potential reputation damage. Maintaining compliance requires accurate cost tracking across fundraising activities and the ability to generate transparent financial reports that demonstrate responsible resource stewardship. Source: Carr, Riggs & Ingram

12. Program spending should reach 65% or higher according to BBB standards

Beyond fundraising efficiency, BBB standards recommend that non-profits dedicate at least 65% of total expenses to program delivery. This benchmark ensures organizations prioritize mission impact over administrative overhead. Financial systems that clearly categorize expenses and generate program-specific reports help organizations monitor and communicate their adherence to these important standards. Source: Carr, Riggs & Ingram

13. Average program efficiency across the sector stands at 75%

The typical non-profit achieves approximately 75% program efficiency, with 7 out of 10 charities meeting or exceeding this benchmark. Top-performing organizations significantly exceed this average, dedicating 80% or more of expenses to programs. Understanding where your organization falls on this spectrum requires granular financial visibility that NetSuite's advanced reporting provides. Source: LitmanGerson Associates

14. Reserve ratio targets range from 90-180 days of operating expenses

Financial sustainability requires maintaining adequate reserves, with best practices recommending 90-180 days of operating expenses in reserve funds. This cushion protects organizations during economic downturns, funding gaps, or unexpected emergencies. Calculating and monitoring reserve ratios demands accurate expense tracking and cash flow forecasting capabilities. Source: Miller Cooper LLP

Revenue Concentration Risks

15. Major donors ($5,000+) account for 77.7% of total fundraising revenue

A striking concentration has emerged: donors giving $5,000 or more now provide 77.7% of total revenue despite comprising just 3.1% of the donor base. This dependence on wealthy supporters creates significant vulnerability. Sophisticated donor management systems that identify, cultivate, and steward major gift prospects become essential for organizations navigating this concentrated landscape. Source: Nonprofit Quarterly

16. Micro donors contribute only 1.6% of total fundraising dollars

While small-dollar donors represent the majority of supporters, they contribute a mere 1.6% of total fundraising revenue. This economic reality drives strategic decisions about resource allocation, though organizations must balance short-term efficiency with long-term donor pipeline development. Many major donors started as small contributors who developed giving habits over time. Source: Nonprofit Quarterly

17. Affluent household charitable participation dropped to 81% from 91% in 2015

Wealthy households are giving less frequently, with participation declining from 91% in 2015 to 81% in 2024. However, affluent donors who continue giving are contributing 30% more than previously. This polarization means non-profits must work harder to maintain relationships with wealthy supporters while maximizing engagement from those who remain committed. Source: Bank of America Corporation

Digital Fundraising Trends

18. Online fundraising grew just 2% in 2024—not keeping pace with inflation

Digital fundraising growth has stalled, with online giving increasing only 2% in 2024—below inflation rates. This deceleration challenges assumptions about inevitable digital growth and highlights the need for sophisticated online strategies. Organizations leveraging integrated ecommerce and donation platforms like SuiteCommerce can create donor portals that improve online conversion rates. Source: Chronicle of Philanthropy

19. Monthly giving revenue increased 5%, accounting for 31% of online revenue

Despite overall digital stagnation, recurring giving programs showed strength with 5% growth in 2024. Monthly donors now provide 31% of all online revenue. These sustained giving relationships offer predictable income streams and higher lifetime value. Automating recurring gift processing, acknowledgments, and renewals through SuiteBilling capabilities helps organizations build and maintain these valuable programs. Source: Chronicle of Philanthropy

20. 64% of non-profits default donation pages to one-time gifts

A significant optimization opportunity exists: 64% of organizations default their giving forms to one-time donations rather than encouraging recurring gifts. Given the substantially higher lifetime value and retention rates of monthly donors, this default setting leaves significant revenue on the table. Simple form optimization can dramatically impact long-term fundraising performance. Source: M+R Benchmarks

21. Non-profits send an average of 62 emails annually, with 30 fundraising appeals

Email remains a primary fundraising channel, with organizations sending an average of 62 messages per year, nearly half being fundraising appeals. Effective email programs require sophisticated segmentation, personalization, and timing optimization. Integration between donor management systems and email platforms through tools like NetSuite Mailchimp Integration enables data-driven email strategies. Source: Chronicle of Philanthropy

22. Email campaigns generate $58 per 1,000 emails sent

Email fundraising delivers measurable returns, generating approximately $58 per 1,000 messages sent. This benchmark helps organizations evaluate campaign performance and calculate email channel ROI. Tracking these metrics requires integration between email platforms and financial systems to attribute donations accurately and optimize future campaigns. Source: Greater Cincinnati Nonprofit News

Generational Shifts in Giving

23. Millennial giving increased 22% to an average of $1,616 per donor

Millennials are emerging as a philanthropic force, with their giving increasing 22% to average $1,616 per donor in 2024. Remarkably, this generation's giving falls within 4% of what baby boomers gave at the same life stage when adjusted for age and inflation. Organizations that effectively engage millennials position themselves for long-term sustainability as wealth transfers accelerate. Source: gcnonprofitnews

24. 61% of Gen Z donors say creator involvement makes them more likely to donate

Younger generations respond to different engagement tactics, with 61% of Gen Z donors indicating that influencer or creator involvement increases their likelihood of giving. This shift demands new partnership strategies and digital engagement approaches. Non-profits must adapt their marketing mix to reach these emerging donors through channels and voices they trust. Source: PR Newswire

Technology Adoption Gaps

25. Only 24% of non-profits have an AI policy in place

Despite rapid AI advancement, just 24% of non-profits have established formal AI policies. This preparation gap leaves organizations vulnerable as artificial intelligence increasingly impacts fundraising, operations, and stakeholder expectations. Developing governance frameworks now positions non-profits to leverage AI opportunities while managing associated risks responsibly. Source: Climate advocacy lab

26. Non-profits with budgets above $1 million report nearly double AI adoption rates

A significant technology divide exists based on organizational size: larger non-profits with budgets exceeding $1 million report 66% AI adoption compared to 34% for smaller peers. This disparity threatens to widen competitive gaps as AI capabilities become increasingly important for donor engagement, operational efficiency, and strategic decision-making. Smaller organizations need accessible technology partners to bridge this divide. Source: CYNOTEX

How Anchor Group Helps Non-Profits Optimize Fundraising Efficiency

The statistics paint a clear picture: non-profits face mounting pressure to improve donor retention, demonstrate operational efficiency, and adopt technology solutions that maximize mission impact. Organizations struggling with manual processes, disconnected systems, and limited financial visibility find themselves at a significant disadvantage.

NetSuite ERP addresses these challenges by automating repetitive tasks, providing real-time financial visibility, and enabling data-driven decision-making. For non-profits specifically, the platform offers:

  • Automated donor acknowledgments and stewardship workflows that improve retention
  • Program-specific expense tracking to demonstrate efficiency to donors and boards
  • Multi-currency and global compliance capabilities for international operations
  • Integrated reporting through saved searches and analytics dashboards

Our team doesn't just know NetSuite—we nerd out over it. From custom workflows to financial automation, we live for finding better, smarter ways to help your systems support real organizational goals. If you're ready to explore how technology can transform your fundraising efficiency, schedule a free consultation with our team.

Frequently Asked Questions

What is considered good fundraising efficiency for a non-profit?

Top performers spend $0.20 or less to raise each dollar, while BBB standards allow up to $0.35. Organizations should maintain at least 65% program spending ratios. Achieving these benchmarks requires streamlined operations, automated processes, and integrated financial systems that reduce administrative overhead while maximizing mission delivery.

How can technology like NetSuite improve a non-profit's fundraising efficiency?

NetSuite automates donor acknowledgments, financial reporting, and workflow management, freeing staff time for relationship building. Integrated financial tracking provides real-time visibility into fundraising costs, program expenses, and efficiency ratios—enabling data-driven decisions that optimize resource allocation and demonstrate impact to stakeholders.

What are the most effective digital fundraising strategies for non-profits?

Monthly giving programs show strongest performance, with 5% growth and 31% of online revenue. Organizations should default donation forms to recurring gifts, optimize email segmentation, and invest in mobile-friendly giving experiences. Integration between donor management and communication platforms enables personalized outreach at scale.

How do donor acquisition and retention impact overall fundraising efficiency?

Acquiring new donors costs significantly more than retaining existing supporters. With only 19% first-time donor retention versus 69% for existing donors, organizations that improve retention dramatically reduce fundraising costs. Systematic stewardship programs, timely acknowledgments, and personalized engagement drive retention improvements.

Can small non-profits benefit from advanced ERP systems like NetSuite?

Small non-profits often see proportionally greater efficiency gains from automation. While larger organizations report higher technology adoption rates, NetSuite scales to organizational needs. Implementation partners like Anchor Group tailor solutions to budget constraints while delivering essential functionality that levels the playing field.