If you’re leading a nonprofit in 2025, the latest data might feel a little sobering. But it doesn’t have to leave you discouraged. This year’s State of the Nonprofit Sector report is packed with insights that, if you pay attention to them now, can help you avoid unnecessary pain later. We’ve combed through the report and pulled out three trends that every nonprofit leader should be paying attention to. These are real challenges, but they also present real opportunities if you know how to respond.

1. The Funding Gap That’s Quietly Growing

Here’s what caught our attention. Contributions from individuals have dropped more than any other revenue stream. In fact, nearly half of nonprofits say they don’t have sufficient funds to deliver their programs and services. That’s a huge warning light on the dashboard.

Too many organizations are still treating fundraising as an afterthought. Or worse, as a task they’ll “get to when we have time.” But if your fundraising doesn’t reflect the importance of your mission, it’s going to show up in your bottom line.

What to do about it:

• Reconnect with mid-level donors. They’re often the most overlooked but most loyal group.
• Revisit your donor communication. Is it clear, heartfelt, and frequent enough to build trust?
• Get serious about storytelling. People don’t give to spreadsheets. They give to transformation.

2. The Leadership Crisis Nobody’s Talking About

More than three out of four organizations are struggling to recruit senior leaders. Two-thirds don’t have a mentoring program. Half don’t have a succession plan. That’s not just a staffing issue. That’s a risk to your organization’s long-term health.

You can’t wait for a crisis to start building leaders. The bench you’re building today is what carries your mission tomorrow.

What to do about it:

• Identify your high-potential staff and start mentoring them now.
• Build a succession plan, even if you think you’ll be in your role for a while. It’s about stewardship, not replacement.
• Shift your culture from reactive hiring to proactive leadership development.

3. Programs Are Expanding, But Capacity Isn’t

Demand is rising. Nearly 8 in 10 nonprofits reported increased requests for programs and services. But many of those same organizations say they can’t keep up.

When capacity lags behind demand, burnout isn’t far behind. And if your team burns out, your mission suffers.

What to do about it:

• Get clear on your highest impact programs. Not everything deserves equal investment.
• Evaluate where you’re underfunded. Marketing, outreach, and staff recruitment often fall to the bottom of the list.
• Rebuild margin. That might mean scaling back so you can serve better, not just more.

What This Means for Your Strategic Fundraising Plan

These challenges aren’t going away anytime soon. But a clear, intentional fundraising plan can help you lead with confidence. A good plan aligns your fundraising priorities with your mission goals. It clarifies your message. It builds trust with your donors. And it gives your team a path forward.

This is not a time for panic. It’s a time for clarity. And courage.

If you’re ready to take a fresh look at your fundraising strategy, we’d love to help. Let’s build something that can actually support the mission you care so deeply about.