It’s December which means the return of a Next Stage tradition—our annual look-ahead to the social good trends for the coming year!

Looking back at our predictions in 2022 and 2023, we feel good about how our previous forecasts unfolded—from recognizing the growing importance of community voice to the rise of digital communities of practice and the increasing role of corporate social responsibility in addressing workforce gaps.

To determine the top social good trends for 2025, we drew from rigorous third-party research and the frontline learnings we’ve gained from our collaborative partnerships with mission-driven organizations.

We’re profoundly grateful to all the nonprofits, corporations, and government entities who have entrusted us to partner with them this year to advance their social good efforts, allowing us to develop a nuanced understanding of the sector’s most pressing challenges and opportunities.

So, what do we think 2025 will hold? Let’s explore…


1. Federal Spending Cuts Will Disrupt Post-Pandemic Recovery

A federal building.

As federal budget cuts loom, the ripple effects will be felt at every level of the social good ecosystem. Federal funding represents a significant portion of state budgets, and reductions are likely to result in decreased revenue for local municipalities. These budgetary shortfalls will have an outsized impact on health and human service nonprofits, which are often the last line of defense for underserved communities.

The stakes are high. Many trusted community-based organizations lack the robust fundraising infrastructure needed to compete for increasingly scarce resources. This financial squeeze comes as pandemic recovery efforts remain incomplete, with critical social indicators—education, housing stability, and mental health—still struggling to return to pre-pandemic levels.

For these organizations—and the social good ecosystem as a whole—the challenge of meeting rising needs with fewer resources could be one of the defining struggles of 2025. What’s more, the ripple effects could also lead to long-term consequences for community resilience and the ability to address systemic inequities.

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2. Collaboration as an Imperative

A group of people around a table. They are all smiling and two are shaking hands.

Nonprofits and social service providers will face mounting pressure to work together more effectively in an era of diminished funding. Competition for resources often leads to fragmented efforts, with organizations prioritizing their own sustainability over the broader good. But siloed approaches risk creating gaps in services and duplicating efforts, which can ultimately harm the very populations they aim to serve.

But out of such challenges may come some silver linings.

At Next Stage, we’ve coined the term “the social drivers of everything” to emphasize the interconnected nature of the social safety net and its critical role in fostering economic mobility. Just as health outcomes depend on addressing social determinants like housing, education, and food security, the entire social sector benefits when organizations work collaboratively to align goals, pool resources, and innovate together.

In 2025, cross-organizational collaboration won’t just be an ideal—it will be a necessity. Expect to see service providers forming coalitions, pursuing shared funding opportunities, and leveraging partnerships to weather financial uncertainty while ensuring better outcomes for the communities they serve. Organizations that embrace transparency, open communication, and joint problem-solving will emerge stronger, demonstrating the power of sustained collaboration in addressing complex social challenges.

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3. An Innovation Turning Point for Philanthropy

A light bulb to symbolize innovation.

The pressure on philanthropy to fill shortfalls in social good budgets is set to intensify. But let’s be clear—philanthropy can’t single-handedly solve the problem. Government sources account for one of the largest portions of nonprofit revenue (31.8%) while foundations, corporations, and individual donors collectively contribute less than 15%. Asking philanthropy to bridge such a significant gap is like expecting a garden hose to extinguish a wildfire.

In this challenging environment, philanthropists face a pivotal choice: continue to provide stopgap funding for immediate needs or focus on driving innovation to address systemic challenges. A prolonged period of diminished resources will require a shift in how philanthropy operates. Simply maintaining the status quo won’t suffice—philanthropic efforts will need to take bold risks, prioritize systems change, and support initiatives that reimagine how social good is delivered.

Expect 2025 to usher in an era of philanthropic innovation, where funders experiment with new models such as collective impact grants, venture philanthropy, and capacity-building investments. These approaches, while not a cure-all, could catalyze the systemic transformation required to sustain the sector in the face of financial uncertainty.

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4. Increased Focus on Social Cohesion

A nonprofit volunteer handing some food supplies to a woman in need.

In the aftermath of an election year marked by unprecedented division, the already-fragile relationship between service providers and the communities they serve is under even greater strain. This dynamic is particularly pronounced among those experiencing poverty—people who are inundated with politicized rhetoric while witnessing the dismantling of equity-focused systemic frameworks.

Rebuilding social cohesion will be a critical focus in 2025. Organizations must prioritize meaningful engagement, moving beyond transactional engagement approaches to build authentic connections grounded in trust, empathy, and mutual respect. This will require creative solutions, such as leveraging “prosocial media” initiatives (think YouTube’s Community Notes or Bluesky’s anti-toxicity tools), which are designed to foster inclusivity and constructive dialogue. These emerging features offer a hopeful counterbalance to traditional social media which often amplifies division and misinformation.

By embracing innovative communication tools and doubling down on community-centered strategies, social good organizations can begin to repair frayed societal bonds and foster a renewed sense of shared purpose. Trust will become a cornerstone of sustainable impact, influencing everything from program design to donor relations.

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5. AI Makes Its Mark on Social Good

A graphic that shows the flow of new technologies working together.

How can any self-respecting prognosticator not include AI in a list of future trends? The tools we commonly refer to as “AI” are better described as advanced learning systems. These systems excel at processing vast amounts of data, identifying patterns, and automating tasks—essential capabilities for a social good sector that typically struggles with limited resources for data management, evaluation, and marketing.

AI has the potential to accelerate social impact while significantly reducing costs, a critical need in an era of diminishing resources. From predictive analytics to personalized outreach, these tools can help organizations optimize operations, improve outcomes, and do more with less. However, effective adoption of AI in the social good space is hindered by a lack of access to technology experts and infrastructure.

In 2025, we expect to see greater philanthropic investment in process improvement initiatives aimed at equipping service providers with AI-driven tools and insights. These efforts will likely extend beyond individual organizations, seeking to enhance the efficiency and effectiveness of entire ecosystems working toward common goals.

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