What today’s philanthropy trends mean for tomorrow’s nonprofits
April 28, 2025
| By Lauren Journot, Impact Director |
How to adapt your strategy and deepen your impact
Philanthropy today is shaped by urgency, innovation, and a redefinition of what it means to do good, and nonprofits that understand and adapt to these shifts are seeing deeper engagement and greater results. While relationship-building and stewardship remain core, how those things happen is evolving.
Five philanthropy trends to watch
Here are five current trends we’re watching (and adapting to), along with how to use them to increase relevance, funding, and impact.
#1 Participatory grantmaking is reshaping philanthropy
Participatory grantmaking is gaining traction as foundations invite communities to help decide where funding goes. This donor trend emphasizes equity, transparency, and lived experience — giving more power to the people closest to the issues.
How to respond:
Nonprofits can strengthen their role in today’s funding landscape by spotlighting community-led decision-making in both their programming and reporting. Funders are increasingly looking to support organizations that reflect the voices of those they serve, so it’s worth seeking out those who prioritize trust-based and participatory philanthropy.
#2 The rise of “philanthropy infrastructure” as a funding priority
Historically, infrastructure work (like nonprofit capacity building, technology modernization, and field learning) has struggled to attract major funding. That’s changing. In the wake of COVID-19, as more funders (including La Crosse Area Community Foundation) seek to support resilient systems, not just strong programs, that are critical to long-term change.
How to respond:
Reframe your internal needs as essential to your mission. Instead of treating staff development, tech upgrades, or strategic planning as “overhead,” present them as strategic investments in sustainability and scale. Look for funders that support “mission support” or “backbone” grants, like the foundation’s capacity-building grants — and don’t be afraid to tell the story of why internal capacity matters.
#3 Digital engagement is evolving into digital belonging
Moving beyond online giving platforms, nonprofits are now building virtual communities that create lasting emotional and mission-based ties. This is especially powerful for donor retention and volunteer engagement. Think Discord servers for mutual aid groups, WhatsApp groups for grassroots organizers, or monthly behind-the-scenes livestreams for recurring donors.
How to respond:
Start by evaluating your current use of technology and identifying tools that improve communication, donor engagement, and program delivery. Building micro-communities around specific causes or donor tiers can create more personalized, lasting connections with supporters. And hosting quarterly virtual events or behind-the-scenes updates offers regular touchpoints to keep donors informed and involved. At the same time, testing interactive tools — like polls, group chats, or Q&A features — can make those experiences more participatory. To get the most out of these efforts, it’s also important to invest in digital literacy training for staff, ensuring your team is equipped to use these platforms effectively and creatively.
#4 Emergent AI tools are creating a widening gap
While AI has the potential to ease workloads and increase efficiency, not all nonprofits are equipped to use it — and that’s creating a growing divide. Organizations that can employ AI tools for donor segmentation, content generation, and impact reporting are seeing faster results and deeper insight into supporters’ behavior.
How to respond:
Begin experimenting with AI, even in small ways. It doesn’t have to mean automation overload — think of it as a tool to help your team work more efficiently and strategically. You might use AI to draft donor letters, email campaigns, or social content more quickly, or apply predictive analytics to sharpen your year-end donor outreach. It can also help summarize grant reports or identify patterns in donor behavior. To use these tools effectively and responsibly, ensure your staff receives training on the practical and ethical aspects of AI.
#5 Donors expect transparency at the speed of trust
Annual reports and static websites are no longer enough. Donors are looking for real-time transparency — not just financials, but organizational decision-making, values alignment, and impact in context. In short, they don’t just want to see the work — they want to feel connected to how and why it’s happening.
How to respond:
Shift from periodic communication to regular, transparent updates. Show your thought process, not just your outcome, and be open about challenges and how you’re addressing them. Use tools like LinkedIn updates and email mini-reports to keep supporters in the loop. For major donors, consider offering optional quarterly “state of the mission” briefings or office hours.
Adaptation is a form of leadership
Today’s most successful nonprofits are not necessarily the biggest — they’re the most adaptable. They pay attention to shifts in behavior, technology, and power. And they’re willing to rethink familiar practices in favor of strategies that build deeper connections and long-term sustainability.
If you’re thinking about how to position your organization for the next phase of philanthropy, we’re here to help. Whether through funding, continuing education, or consulting, we’re here to help you grow stronger for the long haul.