Four Strategic Moves Nonprofits Can Make Before Year-End

Year-end remains the most consequential period for charitable giving. More than 30 percent of annual contributions are typically made in December, creating both opportunity and risk for nonprofit leaders. The question is not whether to act, but how to act with focus in the limited time remaining.

The Giving Outlook 2025-2026 Annual Report highlights a sector regaining its footing but under structural strain: Overall giving rose 6.3% in 2024. Yet, the number of donors declined by 4.5% and donor retention fell by 2.6%. In this environment, incremental improvements to year-end strategy can deliver meaningful results. Applied in the final quarter, these four imperatives for adapting translate into practical, evidence-based moves.

1. Decode Donor Drivers

Concentration among high-dollar donors is accelerating. In 2024, 26 mega-gifts of $600M or more totaled $11.7 billion, nearly 3% of all individual giving. Meanwhile, micro-donors (gifts under $100) declined by almost 9%. These dynamics underscore the importance of identifying which segments still have the strongest near-term potential.

Organizations should use their donor files to explore opportunity in key areas:

• Prior-year year-end donors who have not yet given in 2025.
• Supporters who are responsive to digital channels (45% of online donors now give via mobile).
• Donors most likely to upgrade based on past patterns.

Precision targeting matters more than broad appeals when everyday donor participation is eroding.

2. Focus on Donor Mindset, Not Just Demographics

Demographics alone rarely explain why people give. The Giving Outlook reveals that donor expectations are increasingly shaped by consumer behavior: instant confirmation, real-time updates, and proof of impact are valued by some audiences more than tax receipts or legacy recognition.

For year-end, messaging that acknowledges these preferences can differentiate an organization in a crowded landscape. Some examples include:

• Highlighting specific outcomes from the past year.
• Using digital channels for rapid stewardship (SMS revenue grew 14% in 2024).
• Reinforcing community belonging for donors motivated by connection rather than recognition.

The objective is to align appeals with mindset, not just market segment.

3. Model Resource Allocation Before Committing

Economic resilience supported giving growth in 2024. 3% GDP expansion and a 20% surge in the S&P 500 boosted donor confidence. Yet inflation and cost-of-living pressures still weighed heavily on lower-tier donors. This divergence calls for careful allocation of scarce year-end resources.

Scenario modeling offers a disciplined approach:

• If digital ad spend is increased, what return could be expected? (Search ads in 2024 delivered the highest return at $2.70 per $1 spent.)
• Would redirecting spend from broad acquisition to mid-level stewardship generate higher December ROI?

Forecasting these trade-offs before acting can prevent wasted spend and sharpen focus on the most effective levers.

4. Elevate the Donor Experience at a Critical Moment

Retention remains one of the sector’s most pressing challenges. First-to-second gift retention for healthcare nonprofits, for instance, is just 23%, and recurring giving underperforms across multiple sectors. At year-end, organizations have a prime opportunity to strengthen loyalty.

Practical steps include:

• Adding a personalized thank-you call or handwritten note for mid-level or first-time donors.
• Sending an impact-focused email within 48 hours of a year-end gift.
• Testing SMS or social messaging for real-time stewardship.

These low-cost interventions can increase conversion into 2026, improving stability at a time when the donor base is shrinking.

Looking Ahead

The headline numbers signal resilience. Charitable giving reached $592.5 billion in 2024, the first inflation-adjusted growth since 2021. Yet beneath the surface, participation is narrowing, and the sector faces the risk of a two-tiered future defined by fewer, larger donors.

The year-end period is not only a fundraising sprint but also a strategic proving ground. By decoding donor behavior, aligning to mindset, modeling resource allocation, and elevating the donor journey, nonprofits can capture near-term gains and prepare for long-term resilience.

About Matthew Mielcarek

Matthew Mielcarek serves as Senior Vice President, Analytics & Insights Strategy at AGP. In his role, he works hand in hand with C-level nonprofit executives to unlock latent value in constituent and transaction data. He also engages with fundraisers to validate current strategies and identify untapped opportunities for growth.

Matthew has deep integrated strategy and campaigning expertise, working for traditional and online advertising agencies since 1995. With experience leading over 100 nonprofit client engagements, he has addressed challenges faced by the smallest regional organizations to the largest multi-chapter, multi-affiliate organizations across 15 nonprofit verticals.