Fundraising Trends To Watch

Keeping Up With The Tectonic Shift In Philanthropy? That's what Jen Shang and Adrian Sergeant called it - tectonic - "from the comparatively “easy,” single-focused act of fundraising to a more complex mix of relationships that focus on what can be derived when shared values are at work. More than just gathering donors, tomorrow’s philanthropy will thrive on creating partners and empowering philanthropists who are vested in both the processes and outcomes of social change efforts. It will nurture true, deeply held and sustainable connections between “donors” and beneficiaries." Except tomorrow's philanthropy began many a yesterday ago and is unfolding today even as so many organizations remain fixated on "the single-focused act of fundraising." They haven't shifted: ➡️ From soliciting too often to eliciting more frequently ➡️ From chasing gifts to building philanthropic partnerships ➡️ From asking donors to give to their organization to showing donors how they can give through them to achieve significant, sustainable societal gains ➡️ From prizing dollars raised above all to placing the premium on donors retained ➡️ From cash counting to community building Each day, they fail to shift, philanthropic momentum shifts away from them. It begins with a shift in attitude, followed by a shift in language as suggested below. Its shifts fundraising from what we do to donors to what we do with those whose support we strive to earn.

"This paper explores the potential of dynamic, collaborative public-private governance to foster safe innovation. Drawing from primary research, including interviews with tech industry leaders, U.S. Members of Congress, and staff, and an analysis of 150 AI-related bills introduced by the 118th U.S. Congress, this work identifies emerging areas of alignment between policymakers and industry stakeholders. It also highlights opportunities for a unified national approach, despite the challenges of a fragmented legislative environment. The authors propose a dynamic governance approach that brings government and industry together while combining the foresight of ex-ante measures with the adaptability needed to respond to technological advancements. Coupled with existing ex-post mechanisms, the Dynamic Governance Model creates a comprehensive framework to promote competition, innovation, and accountability. It represents a policy-agnostic extra-regulatory framework, including a public-private partnership for standards setting and a market-based ecosystem for audit and compliance. Ultimately, this governance approach can provide regulatory clarity and predictability, fostering an environment where businesses and innovation thrive while mitigating the risks inherent to AI’s transformative power" Paulo Carvao Slavina Ancheva Yam Atir Shaurya Jeloka Brian Zhou

When I took on my role as Chief Corporate Citizenship Officer at PMI, I set a handful of parameters for myself and my team: 1. Don’t fall into the trap of arm’s-length checkbook philanthropy: One-off cash infusions can help nonprofits in the immediate term, but they don’t get at the issue of sustainable growth. 2. Focus, focus, focus: Diffusion is the enemy of progress. There are an endless number of worthy causes and charitable organizations, but our greatest impact will come from identifying a small number of causes that are intrinsically tied to our values and vision and making those causes priorities. (In our case, this is U.S. military veterans, women’s equity and empowerment, and hyperlocal activations.) 3. Empower—and learn from—those already in the trenches: We’re not going to dictate what happens at the community level. We’re here to listen and learn and find ways to support and expand the good works already underway. 4. Give a “hand up” instead of a handout: Band-Aid solutions may make us feel good in the short term, but they don’t get to the root problem. The cash infusions we give our community-based partners are meaningful, but their value grows exponentially when paired with our business expertise and insights. 5. Offer employees a chance to contribute to change: We polled PMI’s U.S. workforce earlier this year about our plans to support military veterans. An astonishing 97 percent of employees raised their hands to get involved. There’s a hunger out there for making a positive difference in local communities and the broader world. Find ways to connect your people to the issues that matter most to them. It turns out that this is the way the next generation of philanthropists is thinking about their impact as well. A recent article (I’ll share the link in comments) shares interesting insights into how our younger generations—millennials and Gen Z—are embracing a more comprehensive approach to philanthropy focused on measurable impact and deeper connections. They’re also showing a greater tolerance for the “long game,” willing to take risks in the short term to lay the groundwork for greater gains down the road. As the next generation of philanthropists takes the reins and starts investing more than money in the causes they care about, let’s make sure our organizations are prepared to do the same.

The Blackbaud Institute report says that 84% of Gen Z support a cause or nonprofit, but not in the way you might expect. They’re not waiting for a year-end gala or a tax write-off. They’re: → Moving money on Venmo. → Organizing fundraisers on TikTok & Instagram. → Sharing bail funds on Instagram stories. In fact, 50% of Gen Z share causes or fundraisers at least once a week. And they’re three times more likely than Boomers to publicly advocate for the organizations they support. It's not just a new style of giving; it's a power shift. They’re turning away from the donor class model. And leaning into community-led support, impact investing, and mutual aid. → No gatekeeping. → No slow-moving boards. → Just action—fast, visible, and values-aligned. So I’ve been wondering… ↳ What if Millennials and Gen Z don’t want to be philanthropists at all? ↳ What if they’re not looking to tweak the system but to build an entirely different one? One where generosity doesn’t require status. And the impact doesn’t wait for permission. Do we see the end of the donor class or the start of a new giving economy?

I analyze the risk exposure of retail investors to equity crowdfunding in this exclusive interview in The Australian Financial Review. The desire of some investors, especially #retailinvestors to retrieve their #equitycrowdfunding investments amid rising living costs highlights the complex interplay of information dynamics, transparency issues, and varying levels of financial literacy in alternative investments. Equity crowdfunding offers an avenue for individuals to invest in early-stage companies, often with the anticipation of potential future returns. However, unlike traditional investments like stocks or bonds, equity crowdfunding typically involves investing in startups or small businesses, where the likelihood of success may be uncertain, and returns may not materialize for years, if at all. One critical challenge facing retail investors in equity crowdfunding is information asymmetry. Unlike publicly traded companies, which are subject to stringent disclosure requirements and regulatory oversight, startups seeking funding through equity crowdfunding may not offer the same level of transparency. This lack of information parity means investors often have limited access to crucial details about the company's financial health, market positioning, or management team, making it challenging to accurately gauge investment risks. Furthermore, the lower level of information transparency exacerbates the challenges posed by lower financial literacy among retail investors. Many individuals engaging in equity crowdfunding may not possess the necessary knowledge or expertise to conduct thorough due diligence or assess the risk-return profiles of their investments effectively. This can lead to a heightened sense of vulnerability, particularly when faced with external economic pressures such as rising living costs. The lower financial literacy among retail investors implies that they may struggle to fully grasp the distinction between equity crowdfunding and debt. In the case of equity crowdfunding, investors essentially become partial owners of a firm, entitling them to potential returns in the form of capital appreciation or dividends, rather than early redemption RMIT College of Business and Law https://lnkd.in/gDSdmH2c

🚨 The latest global private equity report by McKinsey is out Key take-aways by asset class — PE, RE, PD, Infra: 👇 _______________________ 1️⃣ Private Equity: Liquidity & Deal Flow Comeback ‣ Distributions > Contributions: For the first time since 2015, LPs received more capital back than they committed. A big signal: liquidity is easing. ‣ Deal Activity Rebounds: After two years of declines, deal flow is up—especially in large-cap PE (>$500M EV). ‣ Financing Eases: The cost of buyout financing fell, and new-issue loan volumes nearly doubled. Sponsors took note: entry multiples rose. ‣ Fundraising Down: Traditional commingled PE funds saw a –24% YoY drop. That’s three years of decline in a row. _______________________ 2️⃣ Real Estate: Returns Diverge, Ops Matter ‣ Deal Value Climbs: Global RE deal value rose 11% to $707B—the first uptick in 3 years. ‣ Fundraising Hit: Opportunistic capital raising dropped –31.5%. Mega-fund absence played a big role. ‣ Returns Negative: Closed-end funds posted a pooled IRR of –1.1%. Open-end funds also saw negative returns. ‣ Alt Sectors Shine: Manufactured housing (+11.7%) and senior housing (+5.6%) were rare bright spots. ‣ Ops as Edge: GPs with operational chops now manage 37% of RE AUM—up 11pts in a decade. _______________________ 3️⃣ Private Debt: ‣ Fundraising Down: Global private debt fundraising fell –22% to $166B. Mezzanine strategies were hit hardest. ‣ Direct Lending Stays Strong: LBO financing volumes rose in both the U.S. and Europe—proving direct lending’s staying power. ‣ Broadening Appeal: Institutional, retail, and insurance capital continue flowing in, drawn by stable returns. ‣ Strategy Shifts: More managers moving into asset-based and specialized finance. The playbook is evolving. _______________________ 4️⃣ Infrastructure: ‣ Fundraising Lows: Down –15% YoY. Now at the lowest level in 10 years. ‣ Deployment Surges: Deal value +18% YoY—2024 ranks as the 2nd highest year ever. ‣ LP Appetite Grows: 46% of LPs plan to increase infra allocations in 2025—highest across all private assets (McKinsey). ‣ Sector Shift: Telecom now commands a bigger slice of total infra deal value than ever before. _______________________ 📊 Source: McKinsey Global Private Markets Review 2025 👋 Follow me Andrea Carnelli Dompe' (PhD) for weekly private markets insights 🔔 Tap the bell on my profile and you'll be notified when I post #privateEquity #ventureCapital #privateDebt #realEstate #infrastructure

Venture Capital seems to be the defacto thought when it comes to fundraising but less than 1% of founders do so successfully. For those that don’t fit the VC outlook there are other options to give your businesses the stable footing that it needs. Crowdfunding is often seen as a simple capital-raising tool, but for many founders now see it as a strategic choice rooted in a clear vision for how they want to build and grow their company. Building for a community first vs building then finding a community second. For many companies, the decision to crowdfund was a conscious effort to stay close to their core customers and avoid the influence of professional investors. As one founder put it, crowdfunding allows you to raise money without having to "convince a handful of big investors to believe in you." Instead, you are building a community of people who already do. This approach offers key advantages: Values Alignment: It attracts investors who genuinely want to see the business succeed for the right reasons, particularly for mission-driven brands. Brand Ambassadors: The investors who love your product become your most powerful brand advocates, helping to build momentum far beyond the initial capital raise. Direct Control: Founders maintain more control over their company's direction and avoid potential values misalignment with professional investors who may prioritize different outcomes. While crowdfunding is a brave and public process, it offers a way to build a company on a foundation of shared vision and community ownership. It proves that you can scale a business by bringing your fans along for the journey, and that the best investors are often the people who believe in your mission from day one. If you are building a more open investment landscape, where community, access and strong brand stories drive momentum, you can subscribe to my newsletter here on LinkedIn. It is where I share what we are learning as more people get the chance to back the businesses they believe in.

After 4 weeks and 40+ investor conversations across family offices and institutional funds, five clear patterns emerged about where capital is actually flowing: I’ve spent two months tracking notes in CapitalStack. These are shorthand takeaways from 1:1 conversations with the PERE funds, family offices, and RIAs shaping today’s capital markets. Here are the top themes that emerged: 1. Most family offices overallocated & remain cautious: • Many still tied up in 2018–2021 vintages, waiting to exit • Overallocated to real estate vs. targets, liquidity constrained • Chasing pref equity believing it’s “no downside” (which it isn’t) Translation: They're sidelined from the best opportunities while chasing false security. 2. Niche strategies attract the most attention: • Flex housing, data centers, logistics micro-plays • Senior housing, post-acute care, alt lodging concepts • Even “weird” niches like postpartum or embryo storage getting airtime The more niche and unusual the asset class, the more attention it's getting from capital allocators. 3. Secondaries are coming into focus: • More larger PERE firms raising dedicated funds for secondaries • Provide LPs with liquidity in older funds when exits are delayed • Buy quality portfolios at discounts It's a win-win: LPs get liquidity, buyers get quality assets at a discount. 4. GP capital is becoming of interest: • Many in near future going to raising GP funds • GP stakes, seeding, and co-GP deals all on the table • Mostly from smaller, niche firms Smaller, niche firms are becoming acquisition targets as larger players seek GP equity deals. 5. Maintain a global footprint but focus on local plays: • U.S. Sun Belt remains a magnet • Europe seeing capital for resi & credit platforms • Selective global expansion into digital infra & logistics Sun Belt dominance continues, while Europe and digital infrastructure attract selective global capital. We're flipping the script in October: CapitalStack subscribers will be able to respond to these investor insights with their own opportunities. You’ll have direct lines to the capital being deployed.

Direct financial support to Indigenous Peoples and their organisations is one of the best ways funding partners can back their self-determined priorities. A new funding trend analysis by Archipel Research & Consulting and International Funders for Indigenous Peoples (IFIP) highlighted the recent growth in Indigenous philanthropy and Indigenous-led funds. However, it also found "consistent patterns of pervasive and systemic inequities" and "disproportional lack of direct access of philanthropic funding to Indigenous Peoples and their communities worldwide". This first-of-its-kind research included a review of over 34,000 (!) grants via Candid, a literature scan, a survey, interviews and a dialogue session during IFIP's 2023 annual conference. The report is chock-full of key findings and insights. Here are just a few highlights from the analysis of the 2016-2020 grant data: 📊 Although Indigenous Peoples comprise 6.2% of the global population, only 0.6% (USD 4.5 billion) of global philanthropy between 2016-2020 was identified as "benefiting Indigenous Peoples". Of that, only USD 1.5 billion went directly to Indigenous Governments and Autonomous Regions and Indigenous Peoples Organisations through more than 11,300 grants. (That's an average of less than USD 133,000 per grant stretched over the 5-year period.) 🌏 The majority of funding from 2016-2020 was concentrated in a few specific subject areas: environment, education, human rights, and health. 💸 There was a huge disparity in who received funding. Non-Indigenous organisations (including Smithsonian Institution and World Resources Institute) comprised most of the top recipients of funding that purportedly benefited Indigenous Peoples. All of the top recipients (based on value and number of grants) are based in the United States. 🤝 A disproportionate amount of funding went to programme support, which is often short-term and restrictive in nature. Despite a growth in trust-based philanthropy, non-Indigenous organisations benefitted from general support grants at a higher rate than Indigenous Peoples Organisations. (cc Trust-Based Philanthropy Project) (In subsequent posts, I'll share highlights from other parts of the report, including the interviews with leaders in Indigenous philanthropy and the 20 recommendations.) ➡ This research brings to light gaps in funding to Indigenous Peoples and in data on the same. It also identifies opportunities for systems change in philanthropy - particularly to ensure funders are responding to the self-determined priorities of Indigenous Peoples and guided by Indigenous worldviews, values and protocols. Special shout-out to two amazing Indigenous women, Lourdes Inga (Executive Director of IFIP) and Sabre Pictou Lee (Founder and CEO of Archipel Research), and the rest of your teams for your collective leadership and collaborative work. #philanthropy #funding #newreport #indigenouspeoples #leadership #indigenouspeoplesday