5 Philanthropy Trends Nonprofit Leaders Should Watch in 2026

As your nonprofit looks ahead to 2026, the fundraising landscape is moving through one of its most significant periods of transition in recent memory. Donors are shifting how they give, through which channels, and what they expect in return. Wealth is consolidating in new ways, digital expectations continue to rise, and public funding reliability is becoming more uncertain.

These changes present both new opportunities and real risks as you plan your next chapter. The following five philanthropy trends, grounded in current research and sector data, provide key insights you can use to plan for the year ahead.

Philanthropy Trend #1: Charitable Giving Is Growing, Yet Concentrated at the Top

Recent data from Giving USA 2025 shows that charitable giving reached a record high of $592.5 billion in 2024. Although this growth is encouraging, the rebound has been largely fueled by high-net-worth donors whose giving tends to fluctuate with market performance. Smaller and mid-level donors have not shown the same level of recovery or consistency. This creates deeper reliance on a smaller group of ultra-generous households.

Why It Matters:

For many nonprofits, this means revenue forecasts are now more closely tied to economic conditions and particularly to market cycles influencing wealthy donors. A recession or market downturn could shrink giving at the top more dramatically than in previous eras, placing more pressure on organizations that haven’t diversified their donor base.

What Leaders Should Do:

You can respond by intentionally rebuilding your pyramid of donors, strengthening mid-level donor engagement. Create compelling pathways that donors can upgrade into and articulate how unrestricted giving can sustain your nonprofit’s operations and secure its ability to deliver the best and most reliable impact. Anchoring communication around long-term resilience helps stabilize revenue across fluctuating donor segments.

Philanthropy Trend #2: Donor-Advised Funds (DAFs) Are Becoming a Core Giving Infrastructure

Donor-Advised Funds (DAFs) continue to experience rapid expansion. The Fidelity Charitable 2025 Giving Report highlights another year of record-breaking DAF grant activity, with more donors using these accounts as their primary vehicle for charitable giving. DAFs are no longer a niche tool used by a handful of people. They have become a central part of the giving ecosystem.

Why It Matters:

DAF donors typically behave more like major donors than annual fund givers. They are highly engaged, motivated by impact, and responsive to strong stewardship. Yet many nonprofits treat DAF gifts as anonymous, transactional, or difficult to influence. As DAFs grow, managing relationships with their respective donors will be essential to long-term nonprofit sustainability.

What Leaders Should Do:

Treat DAF contributions as a strategic revenue stream within your nonprofit’s diversified income portfolio. Ensure your CRM properly captures DAF origins (or find an expert who can help you collect quality data), identify patterns in repeat DAF giving, and develop stewardship strategies tailored to these donors. Proactively connect with DAF donors by sharing impact updates, inviting conversation, and highlighting your nonprofit’s areas of greatest need. DAF donors often see the value of more consistent and unrestricted support compared to other types of funders.

Philanthropy Trend #3: Next Gen & High-Net-Worth Donors Expect Impact, Clarity, and Ease of Digital Giving

The continuing generational wealth transfer is reshaping donor values and expectations. Insights from UBS’s Trends in Philanthropy 2025 reveal that younger donors prioritize sustainability, justice, measurable outcomes, and seamless digital engagement. Their approach blends philanthropy with impact investing. That means clearly and concisely communicating your nonprofit’s impact and outcomes has never been more important.

Why It Matters:

These donors want more than heartfelt storytelling. They want transparency, data, real-time insight, and user-friendly technology that makes giving effortless. Articulate measurable progress and offer a user-friendly digital-giving experience to avoid losing relevance with this emerging donor base.

What Leaders Should Do:

Strengthen your impact storytelling through dashboards, succinct metrics, and consistent reporting cycles. Improve the online giving experience, simplify forms, optimize mobile usability, and show tangible results to build credibility. Younger donors notice whether your nonprofit operates with modern systems, clear communication, and digital fluency, and they give accordingly.

Philanthropy Trend #4: Political & Public Funding Volatility Adds Strategic Risk

Government funding has always been subject to policy cycles, yet recent shifts following the 2024 election are creating increased uncertainty across the sector. According to the Center for Effective Philanthropy, both funders and nonprofit leaders cite public funding volatility as a growing strategic concern. Even organizations with historically stable contracts are reporting new challenges in forecasting, reimbursement timing, and renewal expectations.

Why It Matters:

This environment requires your nonprofit to be more proactive in managing risk. Dependence on public funds, especially for organizations with large government contracts, can lead to sudden and unexpected budget pressure, as many nonprofits have learned recently. This unpredictability means your nonprofit must be ready to pivot quickly, adjust projections, and communicate financial impact to boards and donors with greater specificity.

What Leaders Should Do:

Scenario planning is no longer optional. You should take time to model multiple funding pathways, anticipate potential delays or reductions, and integrate contingency plans into your budgeting process. You can also strengthen your messaging around how philanthropic investment protects program continuity during uncertain policy periods. Clear communication with donors about the role of philanthropy in stabilizing essential services is a crucial part of your organizational resilience.

Philanthropy Trend #5: Funders Are Increasingly Supporting “People and Plumbing”

The nonprofit sector is witnessing a marked shift toward gifts that support organizational infrastructure, aka “people and plumbing.” The CCS Philanthropic Landscape highlights growing funder recognition that mission impact depends heavily on staff capacity, strong leadership, modern technology, and reliable systems. Rising labor costs and rapid advances in digital tools (including AI) are making these investments more necessary than ever.

Why It Matters:

Your nonprofit team can’t deliver high-quality programs or scale impact without the right internal systems. Funders are increasingly willing to support capacity-building, yet you must make a clear case for why these investments matter. When you position staff development, data systems, and technology as direct drivers of mission effectiveness, it opens the door to larger, more flexible funding.

What Leaders Should Do:

You can frame capacity needs in terms of mission outcomes, showing how investments in people and systems enable stronger programs, better data, improved stewardship, and long-term sustainability. Demonstrate the connection between infrastructure and impact to help your donors understand why unrestricted and operational support are essential to fulfilling your organization’s purpose.

Looking Ahead: Adaptation Will Define Successful Nonprofits in 2026

These five philanthropy trends reveal a sector that is growing and changing rapidly. Donors are giving more, yet their behaviors are evolving. Digital expectations are rising, public funding is less predictable, and the case for unrestricted support is becoming more compelling. Nonprofits that remain flexible, data-informed, and forward-looking will be best positioned to navigate this environment.

The organizations that thrive in 2026 will be those that strengthen donor relationships at every level, invest in modern systems and staff, communicate impact with clarity, and prepare proactively for funding uncertainty. By embracing these trends, not reacting to them, you can build a more resilient and sustainable nonprofit for the years ahead.