Big Donors Are Slowing Down. Why That’s a Signal to Engage More, Not Less for Year-End
As we head into the critical year-end giving season, fresh fundraising data has sent a clear message to nonprofits. While total dollars raised are modestly up, donor participation remains shaky and relying on big donors alone is starting to look riskier than ever.
The latest Fundraising Effectiveness Project (FEP) report shows that while giving increased by 2.9% in Q2 2025, much of that growth came from large gifts, even as participation among smaller donors continued to dip. Perhaps most telling? Supersize donors, those giving $50,000 or more, gave less than they did in 2024, and the donor pipeline from new and mid-level donors continues to weaken.
What does this all mean as we approach the biggest fundraising season of the year? It means nonprofits need to shift focus or risk falling behind. Let’s break it down.
The Good News: Stabilization is Happening
First, the encouraging part: donor engagement and retention rates are no longer in free fall. After several quarters of steady decline, retention has stabilized at about 26.3%. While this may not sound like a win on the surface, it’s a welcome change after years of worrying drops.
More importantly, it suggests that fundraisers are responding to data, refining their strategies, and holding the line with their donor bases. This is no small feat, especially in a volatile fundraising environment.
The Less-Good News: Big Donors Are Slowing Down
Supersize donors remain a vital source of revenue, contributing nearly half of all dollars raised through the first half of 2025. But here’s the catch: their giving is softening, down 7.7% compared to the same time last year. That trend is even more pronounced among organizations with budgets between $5 million and $25 million, which saw a steep 12.2% drop in dollars raised.
This isn’t just a blip. It’s a structural vulnerability. Nonprofits have become increasingly reliant on a small group of major donors to drive revenue. But when those donors pull back, even slightly, the impact can ripple across entire budgets.
Woodrow Rosenbaum, chief data officer at Giving Tuesday, put it plainly, “The sector’s continued reliance on large gifts underscores a structural vulnerability.” And with potential changes in tax law coming in 2026, there’s even more uncertainty about how major donors will behave in the coming months.
Everyday Donors Are the Key to Long-Term Resilience
Here’s where things get real. Despite being more than half of all donors, micro donors —those giving $1 to $100 — contributed less than 2% of total dollars raised. Their retention rate? Just 16.8%. And yet, this group represents one of the greatest untapped opportunities for building fundraising resilience.
Why? Because relying on a few large gifts is inherently risky. Everyday donors, when engaged consistently and authentically, provide a more sustainable and scalable revenue stream.
Rosenbaum urges nonprofits to treat everyday givers not as a side strategy but as a core pillar of fundraising success. “It has to be a consistent strategy of engaging and inviting everyday givers,” he says, “because we’re going to need that diversity of donor base in years to come.”
Year-End Strategy: Broaden Participation, Not Just Appeals
With Giving Tuesday around the corner and the final giving weeks of the year ahead, now is the moment to double down on inclusivity in your fundraising strategy. That means:
Expanding your appeals beyond major gift prospects. Mid-level and small donors deserve tailored messaging too.
Segmenting your communications so that different donor tiers receive messaging that speaks to their unique motivations and impact.
Investing in retention strategies, not just acquisition. Repeat donors currently account for more than 60% of total dollars raised. Keeping them engaged pays off.
Rebuilding the pipeline by nurturing new and lapsed donors before year-end. The FEP report shows a 10.7% drop in new donors and a 10.2% drop in newly retained donors. This is a red flag that should not be ignored.
Opportunities for Small and Mid-Sized Organizations
Interestingly, smaller organizations, including those raising less than $250,000 annually. saw a more than 4% increase in giving. That suggests a more nimble and perhaps more personalized approach to donor engagement may be resonating.
Cause areas, like environmental and animal nonprofits, saw stronger results in both average and median growth, pointing to the importance of mission alignment and donor affinity.
Smaller and mid-sized organizations may have an advantage here. They can adapt quickly, build more personal donor relationships, and experiment with creative outreach. These are all essential ingredients for engaging a broader donor base this giving season.
Three Key Takeaways as You Finalize Your Year-End Campaign
Diversify your donor strategy now. Major donors aren’t disappearing, but their giving is softening. That makes it crucial to reach out to all donor levels, especially those who may give smaller amounts but have high potential for lifetime value.
Retention is everything. With acquisition down, holding onto the donors you already have is more important than ever. Use year-end as a chance to re-engage past donors, thank loyal supporters, and show impact.
Year-end is about more than one big day. Yes, Giving Tuesday is huge, but the final weeks of the year are a window of opportunity. Use multiple touchpoints, consistent messaging, and clear calls to action to drive momentum all the way through December 31.
Stability is a Starting Point
The headline from the FEP report may be “stabilization,” but let’s not confuse that with security. Donor behavior is shifting, and the nonprofit sector needs to meet the moment by building more inclusive, consistent, and relationship-driven fundraising strategies.
If your year-end plan still leans heavily on a few large donors to carry the weight, now’s the time to rebalance. Engage everyday givers. Reconnect with lapsed supporters. Build the pipeline. The future of your fundraising depends on it.
And the good news? Donors are still ready to give. You just need to give them the right reason and the right reminder.
Want to strengthen your year-end donor strategy? Julep’s smart CRM tools help you segment donors, automate outreach, and personalize your campaigns, so you can spend more time building relationships, and less time managing spreadsheets. Let’s make this your most impactful season yet.