Blackbaud, the makers of Raiser’s Edge CRM & owners of JustGiving, have just released their Status of UK Fundraising report. We recommend that you download & read the full document from this link or the button below, as it contains a lot more detail, reference & context, particularly related to Artificial Intelligence (AI).
In the meantime, we thought it might be helpful to give a brief summary of what we think are the key takeaways from The Status of UK Fundraising 2025: A Benchmarking Report for the AI Era.
The overarching theme that stood out to us was the continuing lack of digital skills and digital strategy in the third sector. Last year, the Charity Digital Skills Report flagged that 50% of charities in 2024 did not have any digital strategy, and that figure hadn’t changed since their 2020 report. Blackbaud’s report flags similar shortcomings and we feel it’s an issue that needs addressing.
Themes from the Report
Financial Pressure and Increased Demand
Unsurprisingly in the current economic climate, one of the top issues is financial pressure.
- 59% of charities report increased demand for services, yet income has not increased to match.
- Larger charities have experienced income growth, but small charities are more likely to see income fall.
- Charities are increasingly drawing on reserves and reporting a funding gap.
Fundraising Confidence Is Low
The report said:
- Confidence in hitting fundraising targets has dropped: only 54% of respondents feel confident (down from 64% in 2023).
- Many fundraisers report morale is lower and workloads are heavier.
Our view:
Every organisation is different, with its own unique issues, and there’s no panacea out there. Both morale & confidence are low everywhere right now, so it’s no surprise that non-profits feel that way when it comes to meeting their fundraising targets, but it’s likely there are efficiencies and gains to be found from a well considered digital strategy, and the right tools.
Digital Still Underused and Underfunded
The report said:
- Digital transformation is widely recognised as necessary, but many organisations still lack the skills, investment or strategic capacity to implement it.
- Digital skills gaps persist, particularly in marketing, supporter journeys, and data integration.
- 36% say their fundraising tech stack is “not fit for purpose”.
Our view:
Charities are often sold expensive tools that they don’t how to use, don’t really need, and/or that don’t integrate with their other tools/platforms. This is because the many digital services (including Blackbaud) want you to buy everything from them, even if their version of a service isn’t very good. That can cause frustration internally, and the very inefficiencies the tools were supposed to solve.
Supporter Journeys and Retention Are a Challenge
The report said:
- Many charities report problems with supporter engagement, stewardship, and data segmentation.
- Email journeys, automation, and CRM integration are underdeveloped across the sector.
- Retention remains low — with churn a significant problem in individual giving.
Our view:
Many non-profits often have a wealth of historical data on donors, beneficiaries, suppliers, and other contacts but it’s scattered, inconsistent and not always held in the most diligent of ways. That makes the data difficult (and potentially unlawful) to use. Sometimes the only thing to do is draw a line in the sand, and start gathering data again – doing it properly, with an integrated CRM that can ensure GDPR compliance and can be used for effective comms.
Growing Importance of Individual Giving
The report said:
- Public fundraising and individual giving remain the largest source of income.
- However, supporter expectations are rising; people expect smoother donation journeys, clearer communication, and better digital experiences.
Our view:
When people donate to charity they want to feel good about it; they want to know their donation is going to make a difference, and telling your story is one easy to let them know. You can do more but letting them know what you’re doing, why, and how they helped reassures them they are making the right choice. Be regular & consistent in your comms – not just when you want something. And never assume people know – they’re busy, distracted, with 1000 things fighting for their attention.
Then, make sure it’s as easy as possible for them to donate. Don’t have complex forms when Apple Pay will do the job.
Inclusion, Diversity, Accessibility and Trust
The report said:
- Diversity, equity, and inclusion is increasingly expected by funders and supporters.
- Transparent digital comms and accessible donation journeys are now essential for trust-building.
Our view:
This comes back to comms (& smooth journeys) again.
Despite what some might believe, diversity, equality, & inclusion means different ages, abilities & disabilities, genders, religions, cultures, as well as races/ethnicity & sexual orientation; it also means diverse backgrounds (wealth, education, class…), experiences, skills and expertise. Basically… it means not all the same type of person, of roughly the same age, with the same backgrounds.
In many cases, charities will have this by default, but people don’t know because it isn’t being communicated – they’re not telling their story. While there are definitely some non-profits out there with very little diversity in their teams, many are very diverse… people just don’t know that. You don’t have to shout it from the rooftops, just show it in your photos, your language, & approach.
How Narrative’s Phased Digital Strategies Can Help
Narrative takes a holistic approach, looking at the big picture to deliver value, clarity, and momentum in multiple stages, to avoid overwhelming your team. Each step is tailored to your orgnaisation’s needs but, typically this is the process:
Phase 1: Discovery & Clarity
We assess your digital readiness: strategy, systems, skills and context.
We prioritise key areas—what will move the mission forward today, this quarter, or this year.
Phase 2: Quick Wins & Foundations
Tackle low-hanging fruit: streamline processes like donor communications, volunteer sign-up flows, and website updates.
Provide training for your team to empower ongoing change.
Phase 3: System Integration & Automation
Set-up/connect your CRM, website, email, and reporting tools to unlock time savings and improve supporter journeys.
Introduce automation (e.g. email journeys, form triggers, data dashboards).
Phase 4: Growth & Continuous Improvement
Expand into areas like online retail, regular giving integration, data-driven campaigns, or AI tools.
Measure impact—and refine as you go.