The biggest challenges facing Fundraising leaders in Australia

Insights from the Fundraising Institute of Australia (FIA) Conference and conversations across the sector.

The FIA Conference always provides a valuable opportunity to step back from the day-to-day demands of fundraising and look at the bigger picture shaping the sector.

This year’s conference brought together fundraising leaders, philanthropy specialists, nonprofit executives and sector partners from across Australia to discuss the future of fundraising and the challenges organisations are navigating.

Across multiple sessions and conversations, a consistent message emerged: the fundraising landscape in Australia is evolving rapidly.

From donor acquisition pressures to the growing strategic importance of gifts in wills, organisations are being asked to adapt their strategies, capabilities and leadership approaches to ensure long-term sustainability.

Following the conference, I ran a LinkedIn poll to hear directly from people working in the fundraising and philanthropy sector about what they see as the biggest challenge facing organisations over the next three years.

While the poll represents a small snapshot of views across the sector, the responses closely reflect many of the themes discussed throughout the conference.

For leaders responsible for fundraising and philanthropy strategy, these insights highlight some important priorities for the years ahead.

Why donor acquisition is becoming more challenging for nonprofits

One of the most widely discussed issues across the conference was the increasing difficulty of acquiring new donors.

Benchmarking data shared during the conference showed that new single-gift donor volumes have declined significantly over the past five years. While digital acquisition channels have grown, they have not fully replaced the effectiveness of more traditional channels such as direct mail or face-to-face fundraising in many organisations.

At the same time, the cost of donor acquisition continues to increase, placing additional pressure on fundraising programs to achieve sustainable return on investment.

For many organisations, this dynamic is creating what some speakers described as a “leaky bathtub” — more donors are leaving the database than new donors entering it.

This reality means acquisition strategies need to be continually tested and refined, with organisations exploring new channel mixes, digital engagement approaches and supporter journeys.

From a recruitment perspective, this shift is also influencing the type of fundraising professionals organisations need to attract. Fundraising leaders increasingly require experience in multi-channel acquisition strategies, digital marketing, data analytics and donor journey optimisation.

For organisations seeking to recruit experienced fundraising professionals, these capabilities are becoming critical to long-term growth.

Why donor retention and lifetime value are becoming strategic priorities

While acquisition was widely discussed, many speakers emphasised that the real opportunity lies in improving donor retention and lifetime value.

Acquiring new supporters is important, but organisations are increasingly recognising the value of investing in supporter stewardship and development to maximise the long-term impact of each donor relationship.

This includes improving second-gift conversion rates, strengthening regular giving programs, and building meaningful engagement with supporters over time.

Fundraisers are also becoming more focused on supporter experience and relationship management, recognising that donors do not interact with organisations in isolated channels. Instead, they experience the organisation as a single brand.

This shift requires greater collaboration across fundraising teams, communications teams and digital teams to ensure supporters experience a consistent and engaging journey.

For organisations building fundraising teams, this evolution means recruiting professionals who can combine strategic thinking, donor insight, marketing capability and relationship management skills.

The most effective fundraising leaders today are those who understand both the data behind donor behaviour and the human connection that drives philanthropic giving.

Why gifts in wills are critical for long-term fundraising sustainability

Another recurring theme throughout the conference was the importance of gifts in wills as a long-term fundraising strategy.

Many organisations are recognising that legacy giving programs represent one of the most sustainable sources of income for the future.

However, successful gifts in wills programs require long-term investment, strong stewardship and leadership commitment.

Unlike other fundraising programs, legacy giving often takes many years to realise financial returns. This means organisations need the patience and strategic vision to invest in pipeline development today while understanding the benefits may be realised many years into the future.

Speakers highlighted that the most successful legacy programs are those that normalise gifts in wills as part of the donor relationship, rather than positioning them as a separate or uncomfortable conversation.

Regular donors and long-term supporters are often the strongest prospects for legacy giving, making stewardship and engagement across the supporter lifecycle particularly important.

For nonprofit boards and executive teams, this creates an important leadership challenge: balancing the need to generate income for current programs while also investing in strategies that will sustain the organisation for future generations.

How the skills required in fundraising teams are evolving

Perhaps one of the most interesting insights from the conference relates to how the skills required in fundraising roles are changing.

The traditional fundraising skill set — relationship building, storytelling and stakeholder engagement — remains essential. However, organisations increasingly require fundraising leaders who can also navigate a more complex and data-driven environment.

Many organisations are now seeking professionals who can combine:

• Strategic fundraising leadership
• Digital acquisition and marketing expertise
• Donor analytics and data interpretation
• Stakeholder engagement and influence
• Strong supporter stewardship practices

This shift is reshaping the fundraising recruitment landscape in Australia, particularly as organisations consider how to structure leadership roles and attract experienced fundraising professionals.

Nonprofit organisations are increasingly looking for fundraising professionals who can lead teams through transformation, modernise legacy fundraising programs and implement innovative donor engagement strategies.

At the same time, experienced fundraising leaders are in strong demand across the sector, particularly those with the ability to manage complex stakeholder environments and deliver sustainable growth.

As a specialist fundraising and philanthropy recruiter, these are conversations we are having frequently with nonprofit boards and leadership teams.

Organisations are thinking carefully about how to structure their fundraising teams and the type of leadership capability required to support their future strategy.

A sector built on collaboration

One of the most encouraging aspects of the conference was the openness and collaboration across the fundraising community.

Leaders were willing to share both successes and challenges, recognising that many of the issues facing organisations are not unique to one charity or one fundraising team.

The willingness to exchange ideas, test new approaches and learn from one another is one of the strengths of the Australian fundraising and philanthropy sector.

Events like the FIA Conference provide a valuable space for those conversations, as well as the opportunity to reconnect with colleagues and meet new leaders working across fundraising, philanthropy and nonprofit leadership.

What fundraising leaders should consider next

One of the most encouraging aspects of the conference was the openness across the sector. Fundraising leaders were candid about the challenges they’re facing — but also optimistic about the opportunities ahead.

While donor acquisition may be getting harder and supporter behaviour is shifting, the sector is also evolving in exciting ways. Organisations are testing new approaches, embracing data more confidently and rethinking how they build long-term relationships with supporters.

What’s clear is that fundraising teams need to evolve alongside these changes.

Success will increasingly depend on bringing together the right mix of skills — strategic fundraising leadership, digital and data capability, strong donor stewardship and the ability to adapt quickly in a changing environment.

For fundraising professionals, this is an exciting moment. The sector is changing, and there is real opportunity for leaders to shape what the next generation of fundraising and philanthropy leadership in Australia looks like.

At its core, fundraising has always been about enabling organisations to create meaningful impact in the community. The strategies may evolve, but the purpose remains the same.

How Johnson Recruitment can support the Fundraising and Philanthropy community

As a specialist fundraising and philanthropy recruiter, these are conversations I’m increasingly having with nonprofit boards and executive leaders across Australia — particularly as organisations consider what capability they need to build sustainable fundraising programs for the future.

If these themes resonate with your organisation, it may be a good time to reflect on whether your fundraising team has the structure, skills and leadership capability needed for the next phase of growth.

If you’d like to talk about how the fundraising talent market is evolving — or what capability your organisation might need in the coming years — I’d always welcome the conversation.

Lisa Pratt – Managing Director
Specialist recruitment for fundraising, philanthropy and nonprofit leadership roles across Australia.
lisa@johnsonrecruitment.com.au
0493 632 441