Community Fundraising in 2025 Underpowered, Not Dead

Community fundraising is not in decline — but it is at a crossroads. Public enthusiasm for participation events, peer-to-peer activity and grassroots fundraising remains strong, particularly among younger age groups. Yet many charities are under-investing in community fundraising teams and strategy, prioritising institutional income and major gifts instead.

This mismatch has created a paradox: Community fundraising is one of the most resilient, future-facing income streams — yet one of the most overlooked.

The charities performing best in this space are those that treat community fundraising as a strategic engagement engine, not an operational afterthought.

1. The State of Community Fundraising

1.1 Decline in donor numbers, not enthusiasm

Sector-wide studies show fewer people are donating overall — but those who remain are giving more. This has reduced the “mass” in mass participation, but not the appetite for taking part in activities.

What’s actually happening:

• Participation interest is high: nearly half the UK public say they would take part in a fundraising event.
• Gen Z and Millennials are the most willing: a crucial signal for long-term sector resilience.
• Peer-to-peer events are strong: running, walking and challenge events continue to grow in value per participant.

Interpretation: People may be giving less passively — but they still want to do something. Community fundraising aligns perfectly with this behavioural shift.

2. Is Community Fundraising Being Ignored?

The short answer: yes — at board level.

Most leadership teams now prioritise:

• Trusts & foundations
• Statutory funding
• Major donors
• Legacies

Community fundraising typically sits lower in investment decisions.

Why this is a problem:

• It is one of the only income streams that builds supporters, not just income.
• It diversifies risk away from heavy dependence on grants and major donors.
• It acts as a feeder for regular giving, volunteering and legacy pipelines.
• Younger audiences prefer experience-based giving, making community fundraising critical for long-term sustainability.

Community fundraising has become a blind spot — not because it doesn’t work, but because leadership attention has shifted elsewhere.

3. Who Is Doing It Well — and Why?

Across case studies and benchmarking, the highest-performing organisations share distinct attributes:

3.1 Clear, repeatable, branded fundraising products

Events or challenges that supporters can rally around — simple, memorable, and easy to personalise.

3.2 Digital-first supporter journeys

The most effective teams integrate:

• automated supporter care
• social media communities
• CRM insights
• digital activation (e.g., early page creation) These teams treat supporter experience as the product — not the event itself.

3.3 Community teams structured for relationship-building, not logistics

They employ:

• community fundraisers
• digital engagement specialists
• stewardship leads
• supporter care officers

The focus is on relationships, not admin.

3.4 Hyper-local storytelling

Grassroots success stories share:

• strong local identity
• a human-led narrative
• clear emotional resonance
• community ownership

These campaigns often grow faster and raise more than traditional appeals.

4. Strategic Risks & Opportunities for Leaders

Risk: Grant Dependency

Many charities have shifted heavily toward trust, grant and statutory income. While valuable, these income streams are:

• competitive
• subject to political cycles
• restricted
• administratively heavy

Community fundraising provides flexible, unrestricted, diversified income that strengthens organisational resilience.

Risk: Under-resourcing Community Teams

Community fundraisers are often responsible for:

• events
• local partners
• schools
• sports clubs
• supporter-led fundraising
• stewardship
• digital engagement

Yet many teams remain small and stretched, suppressing potential income.

Opportunity: The Rising Generation

Younger supporters prefer:

• experiences
• personal challenges
• peer-driven giving
• social-first calls to action Community fundraising aligns with how the next generation wants to support charities.

5. Conclusions for CEOs & Trustees

1. Community fundraising is not shrinking — it is under-leveraged.
2. There is clear public appetite for participation and peer-led fundraising.
3. Organisations that invest in community teams outperform their peers.
4. Community fundraising builds future pipelines in a way grants and majors cannot.
5. Charities treating community fundraising as strategic — not operational — are winning.

Recommendation for Leaders

Re-evaluate community fundraising as a strategic asset. Ask: “Do we have the team, tools and digital journeys to meet public demand — or are we suppressing it?”

Raise + Recruit can provide market insight on the skills, structures and team models emerging in high-performing community fundraising teams.