Charity and not-for-profit trends – state of the sector 2025

The charity sector is no stranger to change. From the pandemic-era to today’s cost-of-living crisis, fundraisers have had to adapt fast. But if there’s one constant across the past five years, it’s this: charities continue to deliver, and supporters continue to show up.

Our latest State of the sector 2025 report offers a benchmarked view of income, supporter behaviour, recruitment, cross-sell and retention across UK charities, taken from our InsightHub benchmarking and reporting platform

To help you reflect on what’s happening, we’ve pulled together the top 10 highlights and linked them to a quiz at the end, to test your knowledge.

1. A year of growth, despite obstacles

2024 saw a 7% growth in income compared to 2023 – this has continued the upward trajectory that’s held since 2020. This growth is a strong indicator that sector innovation is occuring in the right places, as well as that donors are still motivated by purpose. The growth has come even when there has been an inflationary climate, worldwide financial and political instability, and growing pressures on household income post-pandemic.

2. Legacy giving gathers pace

Legacy income rose 10% year-on-year in 2024 and this could be a sign that the ‘great wealth transfer’ is beginning to start. The 10% rise indicates legacy giving is one of the strongest performing income streams in the sector.

3. Cross-sell, still cautious

Even though cross-selling is often talked about, successful cross-sell conversion rates have still remained at a modest level, with 27% of 2024 recruits successfully engaged with a second product in their first year.

This does raise some key strategic questions, for example:

Are we pushing the right second ask?
Is the timing of this right?
Are donors clear on how else they can get involved with the charity?

4. Regular giving – a foundation you can build on

Regular giving (RG) now contributes to nearly 40% of the total donations making up sector income. This means RG is both a reliable and resilient source of revenue. Charities that create stronger giving propositions, with compelling journeys, are a lot better placed to weather market fluctuations.

5. Cash recruits start strong, then slip

The first-year value from one-off donors remains strong but after that engagement drops off sharply. This is a trend we’ve tracked for several years – without any follow-up, these high-potential supporters tend to disappear. This is where organisations that implement a smart second gift and trigger-based comms early are more likely to see lifetime value (LTV) extended.

6. Who’s giving – the return of the elder supporter

There’s been a clear shift back to an older, more wealthier supporter base. Younger families and individuals who are potentially less financially secure are pulling back, which is possibly due to ongoing financial pressures. In 2024, there was a rise in empty-nesters and retirees, which means charities will need to adapt both their propositions and strategies to connect across the different generations.

7. Community fundraising holds steady

Following a huge bounce back in 2023, community fundraising had an income increase of 5%. Although it’s not as dramatic as the spike it had following the pandemic, it’s a strong indicator that both in-person and peer-led fundraising remains popular. Challenge events, local giving and sponsored campaigns continue to do well when they are both well supported and promoted.

8. Digital is dominant – but it needs depth

In 2024, more than 50% of all new supporters were recruited via digital channels. This is an increase of 5% from 2023. However, to encourage further growth of digital channels, user journeys should be personalised, relevant and relatable, with the ultimate aim of long-term retention.

9. Face-to-face retention is falling longer-term

Face-to-face fundraising remains a valuable recruitment channel but long-term retention continues to struggle. Just 13% of RG supporters recruited this way are still giving five years on. That’s a stark contrast to the 23-28% retention rates seen with digital and direct mail.

10. Active supporter bases are growing

Even though recruitment dipped slightly in 2024, the overall active supporter file grew by 4%. This was driven by better retention, fewer lapses and improved engagement among existing donors. In short, it’s not just about finding new supporters, it’s about keeping the ones you have happy – feeling connected and involved.

Despite the recruitment dip, there was a 4% growth in overall active supporter file. The data suggests this drive was from better retention, fewer lapses and overall improved engagement among existing donors.