At Wood for Trees, we’re always digging into the data to understand what’s really going on in fundraising. And this year, the message is pretty clear: income might be holding, but underneath the surface, there’s a lot going on that needs attention.
Our State of the Sector Annual Report 2025 lays out what we’re seeing across the fundraising landscape. It’s built on real CRM data from leading UK and Ireland charities, and it gives a solid picture of how supporter numbers, product performance and income streams are shifting.
But in the spirit of curiosity, we’ve been looking at what others in the sector are saying too. We’ve lined up our own insights alongside Open’s Charity Benchmarks 2024 and Blackbaud’s Status of Fundraising 2025, and when you put them together, they tell an even more compelling story.
Five big trends we all seem to agree on
1. Even if income isn’t falling, supporter numbers are
Our report shows income has stayed fairly steady overall. But recruitment? Not so much. Supporter volumes are falling, especially in regular giving.
We’re not the only ones spotting this:
- Charity Benchmarks highlights another year of acquisition decline.
- Blackbaud found over half of charities said their donor base had shrunk.
What it means: We’re reliant on getting more from fewer people. That might be manageable for now, but it’s not sustainable.
2. Older supporters are keeping things afloat
Our data show that a large proportion of value is coming from older, wealthier audiences. Retirees, empty nesters… traditional charity supporters. This is fine in the short term but poses a risk as those supporters age.
- Charity Benchmarks calls it ‘the Gen Z gap’.
- Blackbaud shows under-35s barely make a dent in most donor files.
What it means: The sector needs to stop talking about younger audiences and start seriously investing in ways to talk to them. If you need help with this, our sister company Join the Dots are experts in this and can lend a sympathetic ear.
3. The continued rise of legacy giving
Another trend which is fine for now but not sustainable forever: legacy income is up again. In our report, it grew by 10% compared to the previous year, and that matches what others are seeing too.
- Benchmarks found legacy campaigns are showing strong ROI.
- Blackbaud says more than 60% of charities now see legacies as critical to long-term income.
What it means: If you’re not investing in legacy right now, you’re missing the biggest long-term opportunity on the table. A massive generational transfer of wealth is underway. Don’t miss out. Not sure where to start? Get in touch.
4. Revenues are not growing as quickly as costs
Across nearly every product, we saw modest increases in revenue while – anecdotally – costs continue to increase across the board. In some cases, average gift values have dropped compared to previous years.
- Charity Benchmarks flags rising costs across most acquisition channels.
- Blackbaud also found that 63% of charities are feeling cost pressure, especially in digital.
What it means: Easy growth isn’t happening right now. Efficiency and net contribution matter more than ever.
5. Digital is booming but it’s not building loyalty
In our data, digital channels accounted for more than half of supporter acquisition in 2024. But digital recruits aren’t sticking around long.
- Benchmarks sees the same pattern: high volume but low value.
- Blackbaud says digital is growing fastest, but retention remains a big issue.
What it means: Digital works, but only if there’s a robust data capture strategy, a solid supporter journey and value strategy behind it. Otherwise, it’s just another leaky bucket.
Where the reports start to differ
Our analysis focused on fundraising data, which contrasts with the broader approach seen in other reports. While we’re seeing broadly similar data patterns, there are some differences in either ‘what’ gets talked about or ‘how’ we reached our conclusions. Important points that jump out include:
Culture and teams matter
Our report focuses on your fundraising data. But Charity Benchmarks and Blackbaud surveyed you on the human side of things too: team structure, capacity, burnout, CRM challenges.
- Benchmarks describes teams grappling with burnout, restructures and underinvestment in CRM.
- Blackbaud shows nearly half of charities citing skills shortages and capacity gaps as growth barriers.
They highlight something important: great fundraising takes great people. The sector has excellent people in it. But many teams are stretched very thin right now. How far can your organisation grow if you operate only with bare minimum staff?
Appetite for innovation
We found a clear picture of what’s working… and what needs attention. Meanwhile the other reports reflect on the need to innovate:
- Charity Benchmarks pushes for bolder innovation and risk-taking.
- Blackbaud says most teams want to innovate, but they’re too time-poor or under-resourced.
There’s an important point here: innovation is easier when you’ve got clarity on where you stand. That’s where understanding your fundamentals – and how that compares with benchmark figures – comes in.
Corporate and major donor giving
For brevity, we look at high value giving at an overall level, while the other reports delved a little deeper into that category:
- Benchmarks says corporate giving is reducing.
- Blackbaud found major donor income is growing… but mainly for charities with strong stewardship.
If you need some help getting started with HVG analysis, our whitepaper might be able to help. You can download it here.
So, where are we now?
If we were to sum it all up, it’d look like this:
- The sector is stable, but stretched
- We’re reliant on fewer supporters
- We’re not bringing in enough younger people
- We’re paying more to get the same (or poorer) results
The opportunity? It’s in doing something about it.
Where do we go from here?
A key thing whenever we’re speaking to fundraisers about their needs is answering the question: “What are we going to do with this insight?”
We believe this is the time to shift towards building:
- Better supporter journeys (especially for digital)
- Stronger foundations that will yield more insightful analysis
- Skills and confidence in your fundraising teams
- Legacy pipelines that’ll pay off long after the current budget cycle
- Smart, measured innovation into your planning
If you haven’t seen it yet, download our full State of the Sector 2025 report here. It’s designed to help you see where you stand, so you can decide where to go next. Because the future isn’t something we wait for. It’s something we create.
