The Status of Canadian Fundraising 2025: Sector Trends, Challenges, and Opportunities in the AI Era

This blog was contributed by Blackbaud as part of an ongoing partnership with ONN. 

The annual Status of Canadian Fundraising Report is back for the fourth year, shedding light on the evolving fundraising landscape in Canada. In an era marked by economic pressures and rapid technological advancement, the report outlines how nonprofit organizations are navigating current challenges and opportunities, leveraging technology, and exploring innovative strategies to enhance their impact.

Income shows growth amid economic pressures

The current economic situation remains the biggest challenge for Canadian charities for the third year, cited by 89% of respondents. Despite this, income performance is trending positively: 66% of organizations report their income either increased or remained static in the last full financial year. Major gifts, higher gift values, and innovative fundraising activities are the main drivers of growth.

Government grants, major donors, individual giving, and foundation grants are the primary sources of income. While 18% of participants do not raise money through government grants, they are critical for those who do, with 29% ranking it as the most important income source. Major donors and individual giving are also critical for nonprofits. In fact, just 4% and 1%, respectively, share that they do not raise money through these income streams. 

There are interesting differences between those whose income grew or declined. 55% of organizations whose income declined say individual giving has contributed less over the last three years. Conversely, for those who have experienced growth, all four key income streams have contributed more than before, highlighting the success of diversified income streams.

Digital maturity helps nonprofits capitalize on opportunities

Digital maturity—defined as the integration of technologies across all facets of an organization—emerges as a pivotal factor in nonprofit success. Participants rated their digital maturity from 1 (lowest) to 10 (highest), revealing an average score of 5.4. Large organizations tend to report higher digital maturity levels, but the research highlights that organizations of any size can achieve digital maturity by fostering a culture of innovation.

Digitally mature organizations are better able to maximize their technology use, leading to improved fundraising outcomes and operational efficiencies. More importantly, the research reveals a direct correlation between digital maturity and income growth, with tech-savvy organizations better positioned to capitalize on opportunities that drive growth.

AI usage in the sector is increasing year-over-year

The adoption of AI has grown significantly in the nonprofit sector, with 83% of participants now using AI tools, up from 67% the previous year. The accessibility of free-to-use AI systems has facilitated this growth, but only a few leverages AI for advanced functions like donor prospecting or behaviour prediction, with generative AI dominating usage.

Despite its increasing prevalence, AI adoption comes with its own challenges. Only 4% of participants say they do not have concerns about using AI, with misinformation, inaccurate output, and data security concerning over 70% of respondents. Despite this, only 11% say their organization has an AI policy in place—and a further 30% are working on one. While this figure has increased from 5% last year, developing clear AI policies is crucial for nonprofits to manage risks and ensure responsible AI use.

Modern technology drives success

These digital maturity and AI-related findings emphasize that technology continues to reshape the social impact sector. Organizations with higher digital maturity are more likely to report good data health. Improved data management, seamlessly integrated technology, and tech training are ranked as top opportunities for non-profits. However, under one third of participants say they get the most out of their donor management system even though most agree that their system is a key enabler of improving overall performance and building stronger relationships.

This glimpse into the latest Status of Canadian Fundraising research highlights that the social impact sector is in transition, navigating economic uncertainties while embracing technological advancements. While innovations like AI create a compelling route to success, sector-wide discussions are needed around policies and ethical AI use to ensure technology and human ingenuity work together to advance missions and enhance impact.

To read all the in-depth sector findings, download the 2025 Status of Canadian Fundraising Report here: https://www.blackbaud.ca/industry-insights/resources/the-status-of-canadian-fundraising-a-benchmarking-report-for-the-ai-era