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The future of fundraising – 7 key trends for the UK’s third sector

The future of fundraising – 7 key trends for the UK’s third sector

The next decade is expected to be a transformative period for fundraising in the UK, marked by hope and opportunity, as well as significant challenges. We’re witnessing shifting donor priorities, the rise of sceptical but increasingly socially conscious new generations, and a greater emphasis on transparency and direct, tangible impact. These trends mean that charities and non-profits face the dual demands of staying relevant and maintaining trust, while pioneering new approaches.

To help answer our questions about what’s to come, we brought together leaders from across the third sector in the UK. Facilitated by two of our transformation practitioners, Joe Spence and Chris Trantom, the lively conversation included:

  • Kerry Glencorse, Senior Partnerships Manager, The Fore
  • Alice Regent, Director of Development, Art Fund
  • Heather Pearl, Development Director, Soil Association
  • Alex Day, Managing Director, Big Give
  • Christina Anderson, Engagement Manager at GoFundMe

Below, we share some of the selected highlights from the session, as each of our experts share their views on the emerging challenges and opportunities ahead. 

1. Gen Z are prioritising social good over traditional charitable endeavours

Kerry (The Fore) offers an optimistic view of the future, inspired by Generation Z’s strong social conscience and commitment to community. This commitment is reshaping the landscape, as younger donors increasingly prefer causes that align with broader social good over traditional charitable endeavours. Kerry emphasises that today’s turbulent socioeconomic environment may lead to a societal ‘rebuilding’ that reflects Gen Z’s desire for social justice, sustainability, and community-oriented impact. This generation’s drive to address systemic issues presents a unique opportunity for organisations to harness their energy and values. 

“Younger generations, out of necessity and urgency, are more socially minded, because they're going to inherit a really different and quite challenging world that has increasing adversity.”

Heather Pearl, Development Director, Soil Association

2. Changing priorities present challenges for traditional charities

Some sectors, such as arts and culture, are facing considerable uncertainty. Alice (Art Fund) notes that traditional arts philanthropy is at risk as donor interests pivot toward climate, social impact, and equity issues. Many established cultural organisations are now working to redefine their value, underscoring their social and civic roles to stay relevant and appeal to a new generation. This shift is crucial, as older, legacy organisations grapple with relevancy issues – a challenge echoed by Heather (Soil Association), who warns that without adapting to the desires of younger, impact-driven donors, these institutions risk becoming outdated.

“The next generation are more inclined to support what they might see as social impact causes such as sustainability rather than the Arts. At the same time, we're seeing cultural organisations reframing the impact of what they do and the social benefit of these places. It's not just about hanging art on the wall and stepping back. It's actually the civic role these institutions play for social cohesion, for education, and giving a better understanding of the world around us.”

Alice Regent, Director of Development, Art Fund

3. Waning confidence in large institutions leaves people seeking tangible outcomes through peer-to-peer support

Across the sector, the need for charities to clearly demonstrate impact and foster trust is paramount. Alex (Big Give) underscored that the decline in public confidence in large institutions is pushing the sector toward more direct, peer-to-peer fundraising models that promote transparency. Platforms like Beam and Kiva, which connect donors with beneficiaries through personal stories, are examples of how charities can build trust by allowing donors to see direct, tangible outcomes. With this model, organisations can demonstrate the specific ways in which contributions make a difference, an approach that resonates strongly with a younger, more sceptical donor base.

“Beam is redefining crowdfunding by creating personal connections that make it almost impossible not to give. By telling each person's story, Beam shows us why supporting someone training to be a nurse or a plumber matters, not only to them but to society. In a world where traditional methods aren’t good enough anymore, Beam offers a powerful, transparent alternative that invites us all to participate in building a better, more inclusive future.”

Kerry Glencorse, Senior Partnerships Manager, The Fore

4. Pressing short-term needs must be balanced with long-term strategies

In today’s fundraising environment, many organisations find themselves torn between immediate financial needs and the desire to build sustainable, long-term strategies. Alex highlights this tension, noting that short-term survival often ends up being prioritised, leaving little room for innovation or experimentation. However, there was general agreement that taking calculated risks is essential for long-term growth. Christina (GoFundMe) champions an entrepreneurial mindset for charity leadership, encouraging organisations to experiment and learn from failures as they would in the corporate world.

“Most charities are stuck in survival mode, focused on immediate needs rather than long-term strategy – it's a tough balance between raising funds to stay afloat now and building a donor base for the future.”

Alex Day, Managing Director, Big Give

5. Collaborations and partnerships offer a path to sustainability

In response to financial pressures and increasing competition for resources, the sector is also moving toward greater collaboration. Heather and Alice suggest that partnerships, or even mergers, might soon become necessary to tackle complex social issues effectively. By joining forces, organisations can maximise their resources and present funders with unified campaigns that promise greater impact. As funders increasingly value cooperation, collaborative efforts among charities are becoming vital for survival and success in a fragmented market.

“Funders love the fact that the Big Give is bringing charities together across our campaigns. We had an arts campaign earlier this year with 200 charities taking part. There’s massive value in bringing organisations together, and that's definitely what we see when it comes to fundraising.” 

Alex Day, Managing Director, Big Give

6. The increasing role of influencers and innovative funding models

To reach wider audiences, some charities are also increasingly turning to celebrities and influencers to amplify their causes. Christina highlights the power of high-profile partnerships to bring attention to environmental and humanitarian issues, particularly with a younger generation who tend to trust influencers over institutions. 

“I would say our biggest opportunity in terms of partnership and ambassadorship is with celebrities and influencers. We sit on a huge network of really high profile people who share our messages and that just amplifies everything so, so, so much.” 

Christina Anderson, Engagement Manager at GoFundMe

7. Corporate donors are seeking partnership, not just sponsorship

Corporate donors are also shifting the funding model, demanding increased accountability and a partnership approach. Heather notes that corporate foundations are stepping up as traditional donation models are reevaluated, with businesses now favouring partnerships that allow them to be directly involved in charitable work. This evolution from sponsorship to partnership reflects a broader expectation that charities will demonstrate measurable, sustained impact. If charities cannot meet these heightened expectations, corporations may eventually bypass them to launch their own social impact initiatives.

“Young philanthropists are asking, 'What have you done? What's the return on impact? How is it sustainable?'... Corporates have CSR and ESG agendas themselves. They're getting more literate in impact, even if their business has nothing to do with impact.”

Heather Pearl, Development Director, Soil Association

Looking ahead: The need for innovation, trust, and relevance

As the conversation around fundraising continues to evolve, the group unanimously agreed on the need for adaptation, innovation, and a shift in approach to leadership. Charities will need to embrace new models, build trust through greater transparency, and align closely with the social causes prioritised by younger generations. 

As the third sector navigates these changes, its success will depend on the ability to balance immediate financial needs with a strategic, long-term vision for impactful and relevant engagement. With Gen Z and Millennials increasingly guiding the philanthropic landscape, charities and nonprofits that embrace innovation, foster trust, and champion social causes will thrive in the next decade.

What does the future of fundraising look like for you? Get in touch to discuss ideas for how your organisation can adapt to shifting priorities and innovative new funding models.