Four key trends shaping growth, fundraising and organisational health
Charities are facing fewer donors, rising costs, and increased competition. Through 18 Pop-Ups in 2025, we identified four trends shaping the sector: sharper fundraising strategies, growth through collaboration, rethinking operating model,s and strengthening culture. These insights highlight how leaders can adapt and build resilience for 2026.
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During the Covid-19 pandemic Q5 founded Pop Up Consulting, an initiative dedicated to providing pro-bono consulting support to charities and not-for-profits (NFPs) with the consulting expertise they often needed but could not afford. This year, we supported 18 charities and NFPs, contributing the equivalent of over £1.2 million in consulting time and more than 5,000 hours of expertise.
As we reflect on the work we have delivered this year, several charity sector trends 2025 stand out clearly. There is no doubt that charities are feeling the squeeze with fewer donors, rising costs and a more competitive and disrupted landscape. In working with 18 organisations this year, Pop Up uncovered four clear trends that show how the sector is adapting and where leaders should focus next: growth strategy, fundraising, organisation design and culture.
The context: a more pressured environment for Charities and NFPs
Two key contextual signals highlight how challenging the environment has become, reinforcing many of the charity sector trends 2025 we are seeing:
- According to the Charities Aid Foundation (CAF) UK Giving Report 2025, we are a charitable nation with 50% of UK adults donating to charity in the last 12 months; however, this is down from 58% in 2019, equivalent to around four million fewer donors.
- Mergers among charities in England and Wales has increased by 90%, from 174 in 2023 to 331 in 2024, according to analysis of Charity Commission data by RSM UK.
These signals suggest that charities are operating under significant cost, income and structural pressure. A shrinking donor base, rising competition and squeezed resources set the backdrop for our Pop-Up insights and the charity sector trends 2025 emerging from our work.
Fundraising strategy: competition, innovation and donor sentiment
A key area of focus for our charity clients this year has been fundraising. With fewer donors giving and many under financial pressure themselves (44% of non-donors cited “couldn’t afford it” as their reason for not giving), some of the patterns we observed were:
- More competition in grant-seeking owing to the rise of AI and its helpful…or perhaps unhelpful use in applications for grants. There is an opportunity here for the critical thinkers to shine as the bar is raised for charities in terms of how the quality, clarity, and distinctiveness of their vision and mission is conveyed in applications.
- Regular giving and retention is critical to the growth of charities. Given that the donor pool is shrinking, retaining and deepening relationships with existing supporters becomes more valuable than simply trying to acquire new ones.
In our Pop Ups, this has translated into developing sharpened fundraising propositions, refining the case for support and embedding data and insights within strategies.
Growth strategy & consolidation: scale, mergers and operating models
With societal need rising and resources constrained, many charities are turning to growth through scale.
From our work this year, we observed:
- Several of our clients were actively seeking smart on-brand collaborations with other organisations, seeking to realise efficiencies and enhance their reach and influence.
- Whether scaling or holding their size, many charities are rethinking service models, cost base, and governance to ensure they are fit for their ambitions in this more cost-constrained and AI-enabled environment.
These behaviours reflect some of the most prominent charity sector trends 2025, particularly the move toward consolidation and more resilient operating models.
Organisation design & culture: teams under strain
Designing the right structure, defining roles and embedding a healthy culture are essential enablers of growth and fundraising. In our work this year we have seen:
- A need to reconnect around strategy, values and behaviours. Without intentional alignment, operational synergy drops and engagement suffers.
- Blurred roles in small teams. With individuals covering multiple functions, unclear accountabilities can lead to overload, reactive behaviour and burnou
- High-pressure working environments. The charity and NFP sector can often be a high-stakes, high-urgency and high-pressure environment. The long hours, resource constraints and often emotionally intense work make the cultural health of teams even more important.
Extending our impact in 2026
Looking ahead to 2026, we want to continue supporting charities beyond individual Pop-Up engagements. That’s why we’re launching a new programme of quarterly events, offering charities the opportunity to join short, practical webinars and working sessions on the topics shaping the sector. Our first session, taking place 21st January 2026, will introduce Q5’s Growth Effectiveness model; exploring how charities can strengthen their strategy, fundraising and organisational foundations for the year ahead.
If you would like to join us for one of these sessions, then please click here to register your interest.
We are all about organisational health, which separates good organisations from the great. Whether our clients are at the top of their game (and want to remain there) or are in ‘turnaround’ mode, we all need to work on our organisational health.
Whatever the situation, be it a strategic conundrum, a market opportunity, or an operational gripe, we combine the art and science of organisational health to help our clients improve and excel.
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