End-of-Year Giving Looks Promising - Is Your Nonprofit Ready?

As we step into November, the outlook for end-of-year giving is hopeful. Effective EOY appeals require a strategic approach. There’s still time to get yours underway!

It’s hard to believe that the end of 2025 is in sight. For many in the nonprofit world, it’s been a turbulent and chaotic 365 days. Foundations in Wisconsin and across the country have been overwhelmed by requests due to federal cuts. Some corporate donors have scaled back on DEI funding. While many individuals have given more to help offset cuts, other individual donors have held back from larger gifts to see what the market will do.

The good news is that there is hope for a strong end-of-year giving season both locally in the Madison region and in other communities. Here’s why Amanda and others in the nonprofit community are feeling optimistic about EOY giving:

• The Market held strong in 2025. While market and financial forecast concerns caused some donors to hold back giving, they have seen steady growth and returns throughout the year. These donors are feeling more confident and ready to give the dollars that they waited on.

• DAFs (Donor Advised Funds) are more popular than ever, making it easy for donors to give. Most DAF deadlines for 2025 tax deductions are December 31.

• Donors in higher tax brackets may front load donations in 2025 to receive the full 37% deduction value before its capped with the new tax law in 2026.

If your organization is still in preparation for 2025 appeals, the following are a few tips to help make them a success!

1. Combine direct mail with digital appeals

It may come as a surprise that despite the digital age, direct mail remains a powerful tool for nonprofits, offering a tangible connection that digital channels can’t replicate. By combining direct mail with social media and email campaigns, you can amplify your message and reach donors multiple times through various channels. Research shows that direct mail has higher response rates and often results in larger donations. According to the Data and Marketing Association, direct mail achieves a response rate of 4.9% for house lists and 2.9% for prospect lists, which is significantly higher than email’s average response rate of 1%. This can be attributed to the fact that 70% of people surveyed by the USPS agree that direct mail feels more personal than digital methods. This makes direct mail a reliable method for generating donations.

Overall, research highlights direct mail as an effective way to communicate your organization’s mission through compelling stories. One of the advantages of email and digital media is the option to integrate video into the appeal. It’s hard to beat compelling videos for storytelling.

So, why not combine the two methods? For your next donor communication, tie in your video to the mailed appeal by offering a QR code in the appeal letter to link to directly to your video.

2. Utilize AI to help write your appeal

It’s ideal to send your mailed appeal some time between the last week in October and the second week in November. Are you feeling crunched for time this year? Utilize ChatGPT or your favorite AI platform to request an appeal letter. If you upload a few of your last appeals and provide areas of focus for your current letter in the prompt, you might be amazed by how quickly AI can generate a first, decent draft. Edit it with your organization's language, stories, and brand… then get it out the door!

3. Empower your Board to help

Ask Board members to review your direct mail list and write a very brief personal message on the appeal letters for the people that they know. Research shows that appeal letters have higher rates of return when they include a special message from someone within the organization that they recognize.

4. Encourage recurring gifts

Monthly giving is quickly becoming a strong opportunity for increasing donor retention and building a broader donor base. The annual appeal is the perfect time to encourage donors to automate their gift through monthly giving.

5. Create a video to accompany your hard copy and digital appeals

Creating a simple 60-90 second video (perhaps even on a cell phone) from the Executive Director, a Board member, or other recognizable figure in your organization, provides a personal appeal. People give to people… a video can help show impact and make an emotional connection.

6. Don’t forget to update your gift acknowledgement

Saying “thank you” is one of the most important opportunities to increase donor retention and engagement. This starts with your gift acknowledgement letter. Look for ways to add impact stories and energy to avoid a boring, form letter.

Good luck with your year-end appeal. We wish you all the best in achieving your goals!