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Rising living costs and less extra money meant Australians gave less to charity in 2024. Donations dropped by 6% (CommBank IQ, 2024), and 29% of charities didn’t meet their fundraising goals (Blackbaud, 2024).
However, charities that met or exceeded their targets shared some key strategies: they invested in their resources, focused on getting new donors, and worked on keeping and growing their existing donor base (Blackbaud, 2024).
As we move into 2025, it’s the perfect time for charities to plan how to overcome challenges while making the most of new opportunities.
1. Donors are cautious but ready to give when things improve
Economic and political uncertainty is making donors careful with their money, especially middle-aged Australians (35–55), who are feeling the impact of rising costs and stagnant wages (CommBank IQ, 2024). Older donors may also feel the effects of global instability on their investments.
The good news? Interest rates are expected to drop soon, and research shows many Australians plan to give more when they can – especially younger donors, like Millennials and Gen Z.
What charities should do:
- Stay active and visible online throughout the year, even during tough times.
- Use digital tools like Google Grants, Paid Search, and SEO to connect with donors year-round, not just during campaigns.
- Running ads all year helps test strategies, collect data, and build better campaigns when donors are ready to give.
2. Digital advertising costs are rising, but it’s still the #1 way donors discover and give
More charities are competing online, making ads more expensive (media costs rose 8.4% in 2024). Privacy changes also make it harder to target audiences. But digital giving is growing quickly, with online donations up 66% over the last five years.
Even older Australians are more active online now, with many spending over six hours a day on the internet (Google, 2024).
What charities should do:
- Stand out online: Share emotional stories, relatable content, or use social media trends to connect with your audience.
- Focus on building your brand: Donors want causes that inspire them. Share a clear, consistent story that makes them feel part of something meaningful.
- Look at examples like World Vision’s TikTok campaign, which reached a large audience by sharing authentic content.
3. Younger generations are gaining wealth and expect more from charities
As wealth transfers from older generations to Millennials and Gen X, these groups are becoming more important donors. But they want charities to align with their values, show transparency, and demonstrate impact.
What charities should do:
- Make donating simple:
- Use easy forms and flexible payment options (like PayPal and Apple Pay).
- Focus on mobile-friendly platforms – over half of traffic comes from mobile devices.
- Share your impact:
- Provide clear information about how donations are used.
- Use videos, testimonials, and behind-the-scenes stories to build trust and inspire action.
- Check out examples like Breast Cancer Trials’ impact page for inspiration.
Moving Forward in 2025
Despite challenges, 2025 is an opportunity for charities to rethink how they connect with donors. Focus on:
- Staying visible and active.
- Building trust with a strong, relatable brand story.
- Optimising your digital platforms to make giving easy and engaging.
By embracing digital strategies, charities can turn 2025 into a year of growth, resilience, and impact.
