Over the past five years, the nonprofit landscape has seen volatility, uncertainty and complexity—and 2026 is likely to follow suit. Organizations will continue to face growing community need while competing for limited resources. For nonprofit organizations to remain steadfast and resilient, preparation is key. Nonprofits must reinforce relationships with current donors, diversify revenue channels and put levers in place to support financial sustainability. Explore the six key trends we expect to dominate the nonprofit landscape in 2026, and our strategies to navigate them.
Donor education leads to new funding sources
Educating donors on the variety of gifting strategies available to them can lead to new sources of funding. Gifts of stock, for example, potentially allow donors to avoid capital gains tax and benefit from the full deductibility of the stock’s market value. According to the 2025 Giving USA report, non-cash assets accounted for more than one-fifth of respondents’ total giving; however, a lack of donor understanding around these options were barriers to this type of strategy, emphasizing the need for increased education.
Qualified charitable distributions (QCDs) may be a tax-efficient solution for donors older than 70.5. Similarly, estate and planned gifts continue to increase in prevalence, especially among aging donors. Donor-advised funds (DAFs) continue to grow in popularity as individuals and families of all income levels seek the convenience and tax advantages they offer. Total giving to DAFs grew nearly 300% from 2023 to 2024[1]. Organizations should spend time explicitly asking and educating their donors about these gift types.
Policy changes influence giving
The One Big Beautiful Bill Act included several provisions that will impact charitable giving in 2026. With the expanded charitable deduction for non-itemizers, the 90% of Americans that do not itemize may be encouraged by the charitable giving tax incentive. Fundraisers should promote this new provision among donors who may not be aware of this incentive. On the other hand, a new floor and cap on itemizers, as well as new restrictions around corporate contributions, may disincentive wealthy donors and corporations from making charitable contributions. Nonprofit fundraisers should speak with their major donors and corporate sponsors to secure pledges early in the year, enabling the opportunity to build a contingency plan if a major funder decides to pull back funding.
A multigenerational donor base seeks transparency and communication
As in recent years, nonprofits will continue to walk the line between stewarding current donors and welcoming the next generation. While baby boomers maintain their status as the largest philanthropic generation, millennials and Gen Z are closing the gap. Younger donors give differently, preferring to research organizations online before giving, leverage reporting and impact metrics, and donate digitally using their smartphones, online giving platforms, social media and crowdfunding[2]. Regardless of generation, donors are seeking transparency during a time in which trust for public institutions, including nonprofits, wanes. For these reasons, nonprofits must ensure that information, such as impact data and financial reports, is easily accessible online and that digital donations can be made easily. Financial storytelling can be a powerful way for an organization to communicate their challenges and successes with donors and attract funding to fill gaps and support new opportunities.
The workforce is strained
The reduction in government funding in 2025, both for nonprofits and the communities they serve, exacerbates the already heavy strain on philanthropic staff. Burnout is real and the path toward preventing it may be clouded by the differing values of a multigenerational workforce. Nonprofits continue to seek strategies to reduce burnout, boost compensation and expand benefits, while also planning for turnover. It is important for organizations to revisit their strategic plan, focus on their core mission, and consider discontinuing programs that are not mission-aligned or are under-resourced. A succession plan is key to ensuring smooth transition as employees retire or depart for new opportunities.
Finance and development staff remain challenging to recruit and retain. We suggest nonprofit organizations consider outsourced, fractional and shared staff and space. Mergers and acquisitions are on the rise among many types of nonprofits due to the benefits they offer in terms of decreasing costs while increasing impact.
Artificial intelligence (AI) presents opportunities and risks
AI will continue to grow across industries and nonprofits are no different. These tools can ease workloads, relieving administrative burdens and allowing staff to focus on stakeholders and mission. Before long, AI will likely be integrated into every software tool, giving nonprofits the power to evaluate donor behavior and quickly draft solicitations. However, with these new capabilities comes the risk of donors receiving more solicitations than ever when the average response rate for fundraising emails is currently at a low 0.07%[3].
Importantly, as adoption increases, organizations must prioritize ethical use, transparency and cybersecurity. This requires solid use policies, employee training, an understanding of how AI tools work and a strong risk mitigation strategy.
Risk management is paramount to long-term success
Just as in the last five years, organizations will face market volatility, economic uncertainty and policy complexity. Fortunately, nonprofits have proven to be resilient. While a relevant strategic plan remains important, a risk management strategy that incorporates measures such as scenario planning, is equally critical as a way to predict how unplanned costs or loss of revenue may be addressed.
Many nonprofits have engaged PNC Institutional Asset Management® (PNC IAM) to establish reserve funds or endowments, both excellent tools to create stability in their organizations. Each year, our advisors review their client’s investment policy statements and spending policies to confirm their investments align with their goals and needs. PNC IAM utilizes enterprise financial modeling to holistically integrate investment and financial decisions, providing our clients with actionable analytics to help them consider various strategies and goals.
As nonprofits enter 2026, challenges abound—but so do opportunities for those who position themselves for resilience. Success will depend on proactive planning, transparent communication, and a balance of mission with sustainability. Organizations that do will be best positioned to thrive in an increasingly complex philanthropic landscape.
Nonprofit Strategy & Solutions Group
PNC’s Nonprofit Strategy & Solutions group serves as a dedicated partner committed to empowering nonprofit organizations to achieve their missions. By combining national expertise with local knowledge, we provide comprehensive education and advice on governance, philanthropy and financial sustainability— going beyond asset management to deliver actionable insights that address the most pressing challenges nonprofits face. With our deep community ties, practical nonprofit leadership experience and strong local market presence, we provide meaningful solutions that optimize resources and deliver a sustainable impact.For more information, contact the team at IAMNonprofitStrategy@pnc.com.
