SUPPORTING FUNDRAISERS, 2025

Five things Trustees need to understand about the current fundraising environment in order to support their fundraisers

Funding under strain

Fundraisers and funders are faced with unprecedented pressure. Global crises, shifting national priorities and a shrinking welfare state are challenging philanthropy. Wins are harder to secure and trustees need to grasp five key facts in 2025 to understand the challenge is not about fundraiser quality, but about the changing landscape.

Funding News
​Five Must-knows for Charity Trustees in 2025

The world of charity fundraising is facing one of its most challenging chapters yet. Global crises, shifting political priorities, and continuous strain on the welfare state are piling pressure on voluntary organisations to do more with less. In 2025, trustees must recognise that the real challenge is not a lack of fundraising skills, but navigating an increasingly crowded, competitive, and uncertain funding landscape. Here are five essential insights for those guiding the sector through these turbulent times.

​1. Funders are overwhelmed by demand

Grant-makers face an avalanche of applications. In response, some leading trusts, such as the Tudor Trust, have closed open programmes and now allocate funding more selectively. Resources are being stretched across more causes, often through smaller awards, favouring urgent or crisis-led work. That leaves little room for long-term, mission-driven innovation.

2. It’s about their priorities, not yours

​There are tens of thousands of trusts and foundations in the UK, but a vastly greater number of charities vying for support. Importantly, funders offer support to advance their strategic goals, not the charity’s. Even compelling applications will fall short if they don’t align with funder objectives. Trustees must therefore insist on deeper research, proactive relationship-building, and the cultivation of “inside intelligence” on funder priorities.

3. Authenticity matters more than polish

Gone are the days when a flawlessly formatted application guaranteed success. Funders now expect to see diversity, inclusion, and lived experience authentically reflected in both governance and programme delivery. Increasingly, they’re wary of third-party fundraising intermediaries and favour direct engagement. Organisational substance will always outshine presentation. Trustees should ensure their organisations can demonstrate genuine impact through site visits, conversations, and transparent data.

4. Fundraisers are under mounting pressure

The cost-of-living crisis is taking its toll. Research by the Charities Aid Foundation shows that more than 3.2 million people in the UK have reduced or stopped regular charitable donations because of rising living costs. At the same time, demand for services such as food banks and mental health support remains high.

Technology is part of the response. Fundraising teams are increasingly turning to artificial intelligence and advanced donor-management systems to work smarter, not harder. Yet technology only delivers when the whole organisation—from trustees to frontline staff—embraces a digital culture.

5. Beware of mission drift

When funders dominate the strategic narrative, the pressure to reshape activity for funding becomes intense. While this may offer short-term gains, it risks diluting mission, confusing stakeholders, and undermining long-term sustainability. Trustees are the custodians of purpose; they must resist funder-led agendas that stray from the charity’s founding aims.

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​A turning point for trustees

Charitable fundraising in 2025 is more complex and competitive than ever before. This is a turning point for trustees: success hinges on strong oversight, strategic resilience and unwavering focus on mission.
 
The pressures facing trusts and foundations are also stark. According to the Association of Charitable Foundations, UK trusts and foundations give out around £3.7 billion in grants each year, but demand for that support far outpaces supply. The Directory of Social Change estimates there are more than 168,000 registered charities in England and Wales alone, competing for a slice of this pot. This imbalance explains why so many funders are narrowing priorities and spreading their resources across more causes, often with smaller awards.
 
For trustees, the implication is clear: sustainability depends less on chasing one-off awards and more on cultivating long-term, strategic partnerships with aligned funders. At the same time, trustees must recognise the immense pressures placed on fundraisers in this environment. That means supporting investment in fundraising capacity, embedding fundraising as a whole-organisation responsibility, and paying close attention to the wellbeing of fundraising teams.

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Fundraisers are on the frontline of today’s challenges. Trustees who value and protect their people will ultimately strengthen their charity’s resilience.