2025 is around the corner, and knowing the latest statistics provides context and a competitive edge in navigating the ever-changing non-profit environment. Your mission’s success is dependent on charitable giving, a dedicated board and staff, and, ultimately, the endowment or foundation.

Now, investment returns are essential. Yet, focusing solely on returns and not creating an approach that can sustain your organization’s mission in the long term can limit the potential of the organization. That’s where holistic planning comes in – to provide context, analysis, and an actionable plan that supports both short-term and long-term goals – and, of course, is complemented with a corresponding investment strategy. Every factor from donor relationships and the economy to portfolio diversification and the partnership with your manager influences success.

Use the insights below to drive conversations on where your organization should be focusing its efforts in the year to come.

$3.6 Billion was donated on GivingTuesday 2024.

36.1 million people participated this year, signifying the willingness to make financial contributions, volunteer, or donate goods to organizations despite ongoing economic uncertainty.

Opportunity: Connecting and deepening relationships with previous, ongoing, and new donors will continue to be paramount to the sustainability of non-profit organizations. One specific area of opportunity is launching a planned giving program, which includes educational events. See how your team can incorporate this in your plan by Unlocking the Power of Planned Giving Events.

Two rate cuts from the Federal Reserve are anticipated for 2025.

As the Fed battled high inflation, it commenced a rate hiking campaign increasing interest rates until September 2024 when they cut rates for the first time. Given the economy’s strength, policymakers have communicated that they can move slower in the rate cut campaign.

Opportunity: Given the degree of economic uncertainty stemming from the inflation battle, and an incoming new administration, diversification across different asset classes may be considered while navigating the elevated interest rates and uncertainty to help mitigate risk and retain purchasing power. Alternative investments, such as private credit, have the potential to improve a portfolio’s risk and return profiles. Learn more about private credit and the benefits in Private Credit: What Non-Profits Need to Know.

The average length of a board member’s term is 3 years.

While board turnover is an expected element of non-profit operations, there are policies every organization should have in place to minimize disruptions to operations, processes, and decision-making. Spending and Investment Policy Statements are two non-negotiables related to the organization’s finances and endowment.

Opportunity: Implement regular reviews of your organization’s policies, such as your investment policy statement, to ensure that it accurately reflects and outlines the portfolio goals, asset allocation, and risk tolerance. By doing so, all board members should have clear expectations and an understanding of the goals. Here are Four Considerations for your Non-Profit Investment Policy. Once you’ve reviewed your policies, consider evaluating your manager with this scorecard (and sample RFP, if you decide to interview new managers) as it helps to take a pulse on how they are delivering their services.

At the end of the day—or year—being in tune with the latest trends will help your organization adapt to evolving donor expectations and will help focus on long-term financial stability. With these priorities in mind, you'll create lasting relationships and partnerships with those who support your mission.

Sources: GivingTuesday.org, Wall Street Journal.