2025 has continued to be a challenging year for nonprofits. Here are a few trends we see coming in 2026:
- Turnover Crisis: Nonprofit executives continue to experience burn out. Leaders can make more money working in the for-profit sector, while saying goodbye to the stress of raising funds and vicarious trauma. At the same time, many nonprofit executives are reaching retirement age. The question is – have we prepared mid-level managers and C-level staff to advance to CEO and executive director roles? Does this group of professionals have the experience to create and manage budgets, navigate federal funding and human resources issues and become the public face of a nonprofit? Investing in professional development for your entire team would be a wise move in 2026.
- Generosity Crisis: According to a 2022 survey by the Generosity Commission, 74 percent of Americans say they aspire to be generous. But contrast that with data showing that there are fewer donors.
- Uncertainty Rules: Nonprofits will continue to live under an umbrella of uncertainty. Reliance on federal grants has proven to be problematic. Continue to diversify and strengthen your development plan so that you are strategically talking to donors regularly and with purpose. Major gifts and legacy gifts will critical for raising additional funds.
- The Monthly Donor & The Mid-Level Donor: We’ve all heard the stories about the donor who gave a small donation every month – the person who was thanked and stewarded and ended up leaving the nonprofit in their will. Don’t take these “smaller” donors for granted! Spend time with your data and develop a list of monthly donors and mid-level donors to focus on in the coming year.
- Donor Stewardship: From saying thank you to addressing envelopes accurately, we cannot stress stewardship enough. Never underestimate the power of “thank you” in cementing the relationship with a donor and encouraging them to further invest in your organization.
- Savvy Donors: Donors are becoming more educated about nonprofit financial practices, reserve accounts and ways to invest in nonprofits outside of cash gifts. With tax laws changing, nonprofit development staff and leaders will need to continually educate themselves on estate planning, gift annuities, donor-advised funds, etc. The Association of Fundraising Professionals shared this helpful update on tax laws recently.
Learn more about Spelman Johnson’s work with nonprofit organizations here.