Changing dynamics in volunteerism, economics, demographics and more are creating challenges and opportunities for nonprofits and philanthropic organizations. The Dorothy A. Johnson Center for Philanthropy outlines the issues in “11 Trends for Philanthropy 2025,” which offers research and guidance for nonprofits, foundations and donor groups on the shifting environment.
The Johnson Center was founded in 1992 at Grand Valley State University in Michigan as the Center for Philanthropic and Nonprofit Leadership as an anchor institution of higher education and applied research on philanthropy.
Here are some of the trends identified in the 2025 report.
Giving groups growing strong
A form of philanthropy known as collective giving is gaining strength and is expected to double in the next five years.
Philanthropic collectives, sometimes called giving groups, generated $3.1 billion in pooled donations from 370,000 individuals in the U.S. from 2017 to 2023. The dollar total is 140% above than the previous study published in 2017.
One reason for the growth and strong projections in collective giving is that funding donated by groups in workplaces is at times matched by employers.
Philanthropy lobby expanding
Lobbying activities by philanthropic organizations are on the rise, brought on by such factors as tax code rewrites that affected those groups.
Other factors behind the increase in lobbying include a steady rise in upstart philanthropic organizations, many of which launched their own governmental relations efforts. Lobbying also picked up as organizations saw the success of the so-called Big Five philanthropic advocacy groups in defeating efforts to exclude nonprofits receiving Medicaid funding from the COVID-related Paycheck Protection Program in 2020.
The Big Five are the Council on Foundations, the National Council on Nonprofits, Independent Sector, the United Philanthropy Forum and the Philanthropy Roundtable.
Spend-downs surging
An increasing number of philanthropic families and foundations are opting for what are known as spend-down strategies or planned lifespans, described by the Johnson Center as “setting an end date for a charitable entity and making more, and often significantly larger grants, at an accelerated pace to meet that deadline.”
Warren Buffett provided an example of the trend in 2024 when he announced that his three children would have just 10 years after his death to allocate the remaining portion of his fortune through a charitable trust.
Researchers say donors adopting spend-down strategies are driven by a sense of urgency to address issues such as climate crisis and economic inequality, and indications that setting a fixed time frame for charitable giving sharpens decision-making and focus.
Aging population creates challenges
Americans are living longer and having fewer children, resulting in a rapidly aging population that is creating challenges for nonprofits and philanthropic organizations to keep up in providing support. By 2034, adults 65 and older are on track to outnumber children for the first time.
A decline in volunteerism is compounding the issue, as is a looming retirement crisis that will affect charitable organizations and service providers, the center said.
“As aging issues gain prominence in public policy and philanthropy, stakeholders must embrace innovative approaches to ensure equitable and sustainable support for an aging nation,” the Johnson Center reports.
Giving days proving productive
In the 13 years since the inception of Giving Tuesday, a growing number of community groups and nonprofits have adopted versions of their own giving days.
The approach capitalizes on the ease of online giving, the social media presence of nonprofits and a sense of community that giving days offer.
Research shows it’s an effective strategy for converting prospects into first-time donors and can be used to generate renewed donations and re-engage lapsed donors through use of hourly prizes, matching gifts and real-time dashboards.
Changing face of volunteering
Volunteerism is rebounding after taking a sharp downturn during the pandemic, but it still hasn’t climbed back to the 2019 level.
As a result, analysts say organizations may not be able to use traditional volunteering models to engage younger Americans, such as having someone show up for a four-hour slot at an information desk or food service operation.
Tactics include offering short-term volunteering opportunities, virtual engagements and performing informal acts of service for neighbors, friends and family.
Answering the call for health care workers
With the U.S. experiencing a growing shortage of health care workers, philanthropy is responding.
Examples include multimillion-dollar donations to provide tuition-free education for medical students and collaborative initiatives to train individuals for health care careers.
Donors addressing the issue included Bloomberg Philanthropies, which provided a $1 billion gift to Johns Hopkins University and provided additional funding to the four historically Black medical schools: Howard University College of Medicine, Merry Medical College, Charles R. Drew University of Medicine and Morehouse School of Medicine.
Elsewhere, Albert Einstein College of Medicine alumnus Dr. Ruth Gottesman donated $1 billion to create an endowment to cover the cost of tuition to all students of the institution.
The trend is expected to continue, with projections showing that more than 3 million additional health care workers may be needed to meet demands for care in 2026.
Social justice philanthropy contracts
Political trends and backlash against diversity, equity and inclusion initiatives have chilled donations to social justice issues in recent years after giving during the height of Black Lives Matter activism.
The Johnson Center reports that while some organizations remain steadfast on social justice issues, others have distanced themselves.
“As organizations grapple with these pressures, marginalized communities risk losing essential support systems — and what progress we have been able to make in the first half of this decade,” the report says.
Guarding against burnout
After growing robustly from 2007 to 2017, the nonprofit sector has given way to staffing shortages in recent years. According to a 2023 survey by the National Council of Nonprofits, nearly 75% of those organizations reported persistent job vacancies.
Coupled with common issues among nonprofits, such as budget constraints and relatively low pay, nonprofit leaders say they’re concerned about burnout among workers and difficulties replacing them.
The Johnson Center encourages nonprofits to explore solutions like those offered in the U.S. Surgeon General’s Framework for Workplace Mental Health & Wellbeing, a 2022 report with recommendations that included: “Build in systems for accountability, review existing worker engagement survey data to better understand the needs among disproportionately impacted groups, utilize validated tools for measuring worker well-being, and ensure processes for continuous quality improvement.”