In the corners of conferences, and around meeting tables, the same question keeps being asked:

"Why are donations declining? Why don't we find enough support despite the growing need?"

The answer, as narrated by the landscape of nonprofit work in 2025, lies not only in money, but in understanding change.

A recent article published on the website Funds for NGOs titled "Top 10 Emerging Challenges for US Nonprofits in 2025" presents an accurate list of new obstacles that have begun to impose themselves on charitable work and nonprofit organizations.

In this article on the "Third Bank" platform, we highlight these challenges from both Saudi and global perspectives, revealing how the failure to understand deep structural transformations—especially in new generations and DEI principles—threatens sustainability, not merely the absence of funds.

1. From Transparency to Deep Accountability: Donors Want to See

Modern donors no longer accept vague statements such as "You helped save a life" or "Your support has had a big impact".

Today's donor—especially from the millennial generation and Generation Z—wants details, data, and real stories. They want to see their impact, not just be told about it.

This requires a radical shift in the mentality of organizations, from general reporting to tangible documentation, and from a persuasive language to a language of evidence.

2. Generations Change Everything: Do You Know Who the New Donor Is?

Millennials and Generation Z are not only more digital, but also more value-driven.

They are not necessarily excited by "food aid" projects as much as they are moved by:

  • Climate justice
  • Animal rights
  • Mental health issues
  • Empowering marginalized communities
  • Issues of equality and racial and gender justice

They do not "donate"; they invest in causes that resonate with them.

Here's the crux: The next donor is not someone you convince with need but someone who you spark their personal cause.

Our recommendation: Redefine "target audiences"; the next generation of donors cannot be reached with old tools.

3. DEI: Diversity, Equity, and Inclusion…Not a Choice but a Condition for Existence

No concept has received as much focus in the nonprofit world today as DEI, an acronym for:

  • Diversity – Refers to ensuring your organization includes racial, age, intellectual, and gender diversity.
  • Equity – Means that everyone gets what they actually need, not the same thing afforded to others.
  • Inclusion – Ensures every individual feels welcomed, heard, and valued.

In an environment like Saudi Arabia where there is regional, cultural, educational, and age diversity, not adopting DEI simply means ignoring a significant part of your audience.

Organizations that do not employ women, or target youth, or do not allow space for people with disabilities, or do not engage minorities, completely lose the empathy of new generations.

DEI is not just slogans; it’s internal policies, inclusive programs, and respectful communication.

4. Competition for Funding: It's Not Enough to Be Good… Be Distinct

As the number of organizations increases, funding has become akin to an open competitive market.

To win, it is not enough to be "beneficial"; you need to be distinct, authentic, and sincere in your message.

The most important qualities donors are looking for today include:

  • Clarity in impact.
  • Management efficiency.
  • Telling a true story.
  • Data transparency.
  • Genuine DEI practices.

5. Technology Is No Longer a Luxury: It Is the Language of the New Sector

  • Do you have a website?
  • Are your campaigns digital and supported by statistics?
  • Do you use artificial intelligence in your analysis?
  • Do you know what "Donor Journey Analysis" means?

Digital transformation does not just mean "a smart app"; it is a mindset.

If your organization is not digital, it is on its way to disappearing from the funding map.

6. Policy Changes: Funding Is No Longer Protected

Any changes in tax policies, privacy legislation, or fundraising regulations can deprive organizations of crucial support sources.

Therefore, the sector must have a voice in the legal landscape through advocacy and intelligent corporate governance.

7. Financial Sustainability: Diverse Funding Is Safer Than Sole Funding

Relying on a single funder is like standing on one leg.

The most sustainable organizations are those that:

  • Diversify their income sources.
  • Invest in products or services.
  • Build smart partnerships.
  • Develop their teams' fundraising skills.

8. The Environment: Organizations Are Required to Be Green

Even if your organization is not environmental, environmental practices should be part of your operations.

From printing materials, to selecting suppliers, to organizing events…

The new generation "searches" through all details and donates to organizations that consider the planet.

9. Mental Health: Worker Fatigue Is Not a Badge of Honor

Burnout and emotional stress are common traits in nonprofit sector environments.

However, the smart organizations are those that build a culture of internal mental wellness for their employees and volunteers:

  • Support sessions
  • Flexibility in working hours
  • Digital breaks
  • Non-exhaustive language in the workplace

10. The Need for Renewed Innovation

Nonprofit work does not evolve only through funds but through new ideas.

From the organization focused on cats in Al-Jouf, to apps that connect donations directly to those in need…

The world is changing, and we must evolve with it.

Conclusion: It's Not a Lack of Support… But a Lack of Understanding

If you lead an organization, the question is not: Why has support declined?

But rather: Do we understand how support criteria have changed?

Funding will not cease, but it will stop going to those who do not understand the new generations, do not practice DEI, and do not speak the language of digital impact.

Here begins the mission of the "Third Bank": Interpreting the future in the language of the present.

The original source of the article's idea:

Top 10 Emerging Challenges for US Nonprofits in 2025 – Funds for NGOs

https://us.fundsforngos.org/articles/top-10-emerging-challenges-for-us-nonprofits-in-2025/