What the 2025 Fundraising Effectiveness Project (FEP) Report Means for Capital Campaigns

The newly released Fundraising Effectiveness Project (FEP) report, which analyzes charitable giving in 2024, paints a stark picture: nonprofits are raising more money overall, but from fewer donors.

If you aren’t familiar with them, FEP tracks giving trends across the nonprofit sector by conducting annual surveys, producing quarterly and yearly reports, and offering performance measurement tools. It is a joint effort between the Association of Fundraising Professionals (AFP), GivingTuesday, and a group of donor software firms.

2025 FEP Report: What it Means for Capital Campaigns

The newest FEP report found that:

• Total fundraising dollars increased by 3.5%.
• The number of donors fell by 4.5%.
• Donor retention rates declined for the fifth consecutive year.

On the surface, it’s tempting to celebrate the increase in dollars raised. But the underlying trend is troubling: philanthropy is concentrating in the hands of fewer, wealthier donors.

In the long run, that kind of imbalance creates serious risks for the nonprofit sector. If giving becomes the province of only the ultra-wealthy, the charitable landscape could become even more inequitable and fragile.

Still, in the short term, organizations planning capital campaigns may find themselves unusually well positioned — if they act strategically.

Why Capital Campaigns Are Well Suited for This Moment

Capital campaigns have always followed the 80/20 rule (or even the 90/10 rule): a handful of top donors contribute the majority of funds. The 2025 FEP report reinforces this reality:

Major donors ($5K–$50K) and mega donors ($50K+) contributed over 75% of all fundraising dollars last year. Meanwhile, the number of small donors plummeted nearly 9%.

This environment plays directly to common tenets of capital campaigns:

• Campaign strategies are built to focus heavily on major gift cultivation.
• Campaigns often engage in deeper, longer-term relationship-building with a small pool of lead donors.
• Campaigns typically have structures in place (like feasibility studies and gift range charts) to systematically identify and prioritize the largest potential gifts.

In other words, capital campaigns are designed for a world where dollars are concentrated among fewer donors.

A Note of Caution: The Broader Economic Picture for Capital Campaigns

It would be naïve to ignore the broader forces at work.

If Trump-era tax cuts benefiting the ultra-wealthy are extended or expanded, the richest Americans could hold even more disposable wealth over the next several years. Historically, periods of deregulation and tax relief for the wealthy have coincided with increases in major philanthropic gifts.

We also know from past economic cycles that the wealthy tend to do well during periods of volatility. When markets dip, they buy assets. When small businesses struggle, they acquire them. In short, downturns often widen wealth gaps and, paradoxically, increase the capacity of the already-wealthy to give.

While this reality may benefit capital campaigns in the short term, it raises uncomfortable questions about the long-term sustainability and fairness of the philanthropic system. Nonprofits cannot afford to build their futures on a model that depends exclusively on the ultra-wealthy.

Why Waiting to Launch a Campaign Could Be Riskier

Given the uncertainty, some nonprofit leaders may feel tempted to delay a campaign, hoping for a “better” or “easier” time down the road. But that’s a gamble – and probably a losing one.

My colleague Amy recently explained why organizations should not wait to start a capital campaign in a down economy. She points out that campaigns often take years to fully realize. With inflation, for example, likely to increase, waiting for “perfect” conditions risks increased costs or missing your window of opportunity altogether.

Our recent Capital Campaign Benchmark Study found that organizations mostly keep their foot on the gas during uncertain times. Only 27% of orgs paused their campaigns due to Covid, and only 18% of orgs paused their campaigns due to looming recession fears.

Starting now means your organization can capitalize on available capacity among major donors while also having time to build out mid-level donor strategies, strengthen board engagement, and sharpen your case for support.

How to Move Forward with a Capital Campaign Responsibly

Capital campaigns in 2025 and beyond should embrace a three-pronged strategy:

1. 1. Target lead donors decisively. Recognize that your largest gifts are more critical than ever. Spend the time needed to cultivate personal, values-based relationships with your top prospects.
   2. Simultaneously invest in broadening your base. Develop strong mid-level giving programs. Start or strengthen monthly giving efforts. Build a pipeline that can withstand future shifts in wealth concentration.
   3. Stay alert to economic and political changes. The landscape could shift dramatically depending on tax policy, market performance, and election outcomes.

A Warning and An Opportunity

The 2025 FEP report is a warning and an opportunity rolled into one.

Capital campaigns, with their heavy reliance on major gifts, are structurally-suited to the fundraising realities nonprofits face today. But chasing today’s dollars without planning for a more inclusive philanthropic future would be shortsighted.

If your organization has a compelling need, a strong plan, an underlying base of support, and leaders ready to act, now is the time to launch a campaign.

With clear eyes, careful planning, and a commitment to strengthening both your immediate and long-term future, you have every reason to believe that your campaign will be successful.