Charitable Giving Gap Widens as Small Nonprofits Lag
Event summary
- Blackbaud Institute data reveals 4.3% revenue growth for the 'typical' nonprofit in 2025.
- Large nonprofits experienced 11.7% revenue growth, while small nonprofits declined by 6.4%.
- Gifts over $1,000 grew 4.7%, while gifts under $1,000 declined 1.1%.
- Average gift size nearly doubled over the last decade, reaching $1,346 in 2025.
- Q4 accounted for 36% of all charitable revenue, with December contributing 18%.
The big picture
Blackbaud's data highlights a growing bifurcation within the charitable sector, with larger, well-resourced organizations pulling ahead while smaller nonprofits struggle to maintain revenue. This trend, exacerbated by a cooling economy and the 'fewer donors, more dollars' dynamic, underscores the increasing importance of digital fundraising and AI-driven personalization for survival and growth. The data also suggests a potential shift in donor behavior, with a greater reliance on major gifts and a decline in smaller contributions.
What we're watching
- Mid-Level Focus
- Fundraisers will need to prioritize mid-level donors to offset the decline in smaller gifts and cultivate future major donors, potentially requiring investment in AI-driven personalization.
- Digital ROI
- The continued outperformance of online giving suggests a widening gap between digitally savvy and less-equipped nonprofits, necessitating investment in AI-optimized online donation platforms.
- AI Adoption
- The success of smaller nonprofits in closing the performance gap will depend on their ability to rapidly adopt and effectively utilize AI tools for segmentation, outreach, and relationship management.
Related topics