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:
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.
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.
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who warns that without adapting to the desires of younger, impact-driven donors, these institutions risk becoming outdated.
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.
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.
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.
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.
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.
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.