Fundraising for Education: Key Trends Shaping K–12 and Higher Ed

The Blackbaud Institute surveyed higher education and K–12 professionals twice in 2025 to gain insight into their fundraising performance, enrollment trends, risk readiness, and attitudes towards technology. Our latest report, Fundraising for Education in the AI Era, brings together key findings, patterns, and recommendations for institutions.

The report offers a timely snapshot of how private K–12 schools and higher education institutions are navigating today’s complex landscape. While technology is reshaping the sector, the most compelling story is one of resilience, growth, and the evolving balance between enrollment and fundraising.

Here are a few highlights:

Fundraising Performance Remains Strong

• 55% of K–12 schools and 51% of higher education institutions reported fundraising growth in the past year.
• Only about 1 in 5 institutions saw a decline, underscoring the sector’s adaptability despite economic headwinds.
• Major donors continue to drive this growth, signaling the importance of cultivating high-value relationships.

Enrollment Trends Shape Revenue

• Nearly half of both K–12 and higher ed institutions (48%) reported increased enrollment.
• Around one-quarter experienced declines, often citing demographic shifts, rising tuition costs, and competition from alternative education models.
• Institutions that exceeded enrollment targets pointed to strong programming, targeted recruitment and retention efforts, and innovative leadership as key drivers.

Revenue Streams: Tuition vs. Diversification

• 68% of K–12 schools rely primarily on tuition, compared to 39% of higher education institutions.
• Higher ed shows a more balanced mix, with 27% citing major donors and 12% citing endowments as critical income streams.
• The report warns that tuition-heavy models may be vulnerable, urging schools to diversify revenue streams for long-term sustainability.

Key Risk Areas to Watch

• K–12 schools: Tuition challenges (62%), hiring difficulties (56%), and financial aid pressures (54%).
• Higher education: Cuts to federal funding (74%), policy uncertainty (66%), and retention challenges (65%).
• Across the board, institutions are increasingly concerned about the political landscape and government policy, with nearly 3 in 4 higher ed leaders citing it as their top risk.

Technology Adoption and Opportunities

The report makes clear that digital maturity is now a defining factor in education fundraising success. Institutions that rated themselves higher on digital maturity were more likely to see income growth, underscoring the link between tech adoption and resilience.

• 68% of respondents rated their data quality as good or very good, with digitally mature schools even more confident in their data health.
• 21% of institutions identified as faster‑than‑average adopters of new technology, while 36% admitted to being late adopters, often struggling to keep pace.
• The top technology opportunities cited across both K–12 and higher ed include:
  • Training staff to use technology to its fullest potential
  • Seamless integration of systems
  • Improved data management

Together, these findings highlight that technology isn’t just a back‑office upgrade—it’s a strategic lever for growth, efficiency, and stronger relationships with donors and students alike.

Recommendations for Education Leaders

The report closes with four clear calls to action:

1. Diversify revenue streams to reduce reliance on tuition.
2. Invest in people and technology to strengthen resilience.
3. Build a culture of digital maturity to unlock growth opportunities.
4. Leverage innovation responsibly to balance efficiency with trust.

Why This Matters

Beyond the numbers, what stands out in this year’s findings is the sector’s adaptability. Schools and universities are not only weathering economic pressures and demographic shifts but are also rethinking how they communicate their value to families, students, donors, and communities. The emphasis on innovation—whether through AI adoption, recruitment strategies, or diversified revenue models—shows that education leaders are proactively shaping their futures rather than simply reacting to challenges. This resilience, paired with a willingness to embrace new opportunities, underscores why the education sector remains a vital force in advancing social impact.

Educational institutions are proving remarkably agile in the face of economic, demographic, and policy challenges. With fundraising growth outpacing declines and enrollment holding steady for many, the sector is positioned to thrive—if leaders act strategically.

Download the full report today to benchmark your institution, explore detailed insights, and prepare for the future of education.