Page 3 - 2025 Nonprofit Industry Trends

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2025 NONPROFIT UPDATE Unfortunately, competition for discretionary resources is also expected to rise

in 2025, so nonprofits will need to step up their communication game with
donors. This means better linkage of donor funds to program accomplishments
and impact, a better understanding of why donors give to your organization
with more targeted messaging, an increased use of videos which provide
enhanced storytelling, and more creative fundraising campaigns that
include more experience driven “events.” Nonprofits need to remember that
As we all know, 2024 saw a change in the fundraising is a process. People who volunteer for an organization are more
president, with the Trump administration stepping likely to give. Less than 50% of donors give a second time to an organization,
in for its second go-around in 2025. The election so you need to work at developing the relationship to give them a reason to
was heated and continued the trend we have had stay engaged. Find ways to more effectively collaborate with your donors so
over the last decade of divisiveness across the there is mutual benefit. Without a social return on investment why should
EDITOR country. This creates a tremendous level of stress people give?
and mental health issues which will need to be
KEN CERINI, CPA, CFP, FABFA addressed. In addition, the Trump administration Interest rates are expected to drop during 2025, but not as much as originally
CERINI & ASSOCIATES, LLP
MANAGING PARTNER will bring with it certain initiatives that will impact hoped. The Fed lending rate is anticipated to finish 2025 at around 4%, only report from the Nonprofit Tech for Good, approximately 27% of nonprofits
the nonprofit sector. Where they ultimately layout is about a ¼% drop from current rates. This will both keep 30-year mortgage worldwide have been subject to cyber attacks. Nonprofits are particularly
Ken is the Managing Partner of Cerini uncertain, but if he follows through on his campaign rates in the 6.3/6.4 range for the year and also slow down economic growth vulnerable to cyberattacks due to sensitive donor and patient information,
& Associates, LLP and is a partner in policies expect increased issues surrounding the in 2025. As a result, unemployment rates are expected to be about 3.9% at limited cybersecurity expertise, outdated security protocols, lack of personnel
the Firm’s nonprofit and educational
practice groups. He has nearly 40 years environment, immigration issues, and overall the end of 2025 verse about 4.2% (approximately 4.4% in New York State) at and resources, and dependence on volunteers and third-party vendors.
of experience working with nonprofit funding for the sector. the end of 2024. Unemployment rates for black workers increased to 6.4%
organizations and is considered a leader THE NEW YEAR’S RESOLUTIONS FOR
in the field; serving on Boards; educating at the end of 2024, more than 50% higher than the national average. This 2025 FOR NONPROFIT ORGANIZATIONS IS:
nonprofit agencies; promoting and The stock market’s strong performance during continues to be an issue. With overall unemployment considered to be on
advocating for the sector; and providing 2024 and anticipated declines in interest rates
accounting, tax, and consulting advice 2 025 is anticipated to be an interesting year the low end, this will continue to make it harder for nonprofit organizations ► Be more strategic in their thought process. Take the time during 2025 to
and services to nonprofits of all sizes. bode well for 2025 charitable contributions, with to attract and retain staff. The minimum wage for NY City, Long Island, and focus on strategic planning.
for the nonprofit sector. From a service expectations of increases in contributions of
Cerini & Associates, LLP works with over delivery perspective, the significant inflation we approximately 3.9% over 2024 levels. We have Westchester increased to $16.50 ($15.50 for the rest of the State) per hour
300 nonprofit organizations and is one effective January 1, 2025. However, for many nonprofits looking for direct ► Find ways to enhance collaboration at all levels, with donors, funders,
of the leading nonprofit firms in the New have experienced over the last 3 years (between 16 seen a shift in contributions over the last decade service providers, rates have already creeped up to $20 per hour or more. government, and other nonprofit organizations. This will help to enhance
York metropolitan area. and 20%) has put more individuals and families at with less people contributing to nonprofits, but organization’s ability to provide enhanced services and develop more
risk. While inflation levels in the United States are larger gifts coming from more wealthy Americans. Nonprofits are going to have to look towards more flexible work environments meaningful relationships.
anticipated to stabilize at between 2% and 2.5% As the gap between the haves and the have nots or work schedules, increased or unique benefits (daycare, mental health,
(631) 868-1103 education), and clear and defined growth plans for staff.
KCERINI@CERINICPA.COM during 2025, the demand for services will remain continues to widen, we expect that trend to continue ► Focus on ways to increase financial sustainability through enhanced
high during 2025, putting continued strain on an into the foreseeable future. This coupled with the With the projected increase in demand for services and the difficulty in discretionary funding, social enterprises, and diversification of funding
ASSOCIATE EDITOR already stretched nonprofit sector. Government largest level of wealth transference this country bringing in staff, nonprofits will need to be diligent in finding ways to streamline streams.
funding is anticipated to decline as NY State is has ever seen (it is anticipated that $11 to $12 operations. One way nonprofits can do this is by embracing technology.
MAHNAZ CAVALLUZZI, CPA looking at potential budget shortfalls over the next ► Increase the use of technology and innovation to streamline operations
CERINI & ASSOCIATES, LLP trillion dollars will pass from the silent generation Finding ways to more effectively integrate various software applications, and provide advancement for existing employees.
PARTNER 3 years of $1 billion, $6.2 billion, and $7.1 billion, and baby boomers over the next 20+ years to utilize AI to handle repetitive and time-consuming tasks, maximize the use of
respectively. In addition, government payment nonprofits) means that nonprofits need to increase cloud computing, and utilize a CRM system to centralize data automatically. ► Invest in leadership and talent management. Succession of Board
slow-downs experienced over the last few years are relationships with affluent donors and make sure And while technology can be a tremendous resource for the sector, it can members and staff need to be part of the on-going process as does
(631) 868-1119 not anticipated to get better any time soon. you develop relationships with the next generation. also add a tremendous level of risk, as cyber crimes are on the rise. Per a
MCAVALLUZZI@CERINICPA.COM management training.

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