Back by popular demand, Bob Carter and Steve Higgins broke out their mostly trusty and somewhat foggy crystal ball to share their predictions for the nonprofit sector in 2026.
Below are conversation starters, opinions, and predictions for the world of philanthropy in the year ahead, along with practical tips for navigating potential change. We look forward to your thoughts and hope you’ll join the conversation here on LinkedIn.
1. Deepening volunteer engagement will be a winning strategy in 2026
In December of 2025, UN Volunteers published a State of the World’s Volunteerism Report. One of the findings shows that most volunteers across the globe are doing so directly and not through an organization. Even in the United States, the only region where organization-based volunteering surpassed direct volunteering, it was only by a slight margin.
Organizations across the world should pay attention to this statistic; it represents an opportunity to tap into the vast volunteer networks that are being built and sustained outside of formal institutions. Consider the following strategies in the year ahead:
- Seek out and partner with informal, direct volunteer operations and civic action groups.
- Develop community surveys to gauge volunteer interest areas and timing, and better align your volunteer programs with those responses.
- Illustrate volunteer impact by sharing stories and photos in your marketing efforts to demonstrate how volunteers make a difference through your organization.
- Make volunteering easy. Depending on your organization and region, this may include online sign-up forms.
There is an additional opportunity on the horizon in 2026 for organizations based in the United States, where volunteerism is a differentiator. This year, American organizations should lean into these deeply rooted values to leverage the America Gives initiative that celebrates our nation’s 250th anniversary. America Gives will be one of the largest volunteer efforts in U.S. history, allowing individuals and organizations to log and track volunteer hours to help make 2026 a record-setting year for volunteer service. Consider how you might incorporate this historic milestone and challenge into your volunteer engagement and fundraising strategies.
2. With the introduction of tax law changes in 2026 in the U.S., donor retention will drive stability and steady growth
With the most significant tax reform in decades going into effect this year in the U.S., there will be instability before there is stability. In our experience during times of change, the solution is to deepen your relationships with current donors.
Improving donor retention is one of the most powerful strategies for creating long-term sustainability. Research consistently shows that even modest improvements compound. A Bloomerang article breaks down how a 10% increase in donor retention can double the lifetime value of a donor database.
There are many ways your organization can retain donors at different giving levels, but whatever strategy you choose, make the primary intention to build a genuine relationship between the donor and your organization. For example, for major donors, make time to call them out of the blue to see how they’re doing, invite them to coffee or lunch, get their thoughts on a new initiative – show your organization genuinely cares about and values them as a person. Even a little bit of time goes a long way.
These tax implications and strategies will be important for global organizations to pay attention to as well. Giving USA reported giving by Americans to international causes increased by 17.7% in 2024, a significant jump from 2023. The report in particular highlighted findings that major gifts of $1 million or more decreased between 2023 and 2024, but there was a boost in recurring monthly giving to international aid organizations. It is clear that connecting with major donors should be a key strategy of global organizations in 2026, and as Giving USA recommends, “promote giving regularly, even at modest levels and cultivate these donors toward increased giving and impact.”
3. More nonprofits will have to consider new approaches to funding or increased collaboration or consolidation
With the shutdown of certain USAID funds and other funding sources, as well as a growing number of nonprofits with similar missions and competition for philanthropic dollars, many organizations in our sector will be forced to think outside the box in 2026, which may include utilizing significantly different fundraising strategies or collaborating or consolidating with other like-minded organizations.
A few recommendations for organizations that are considering these paths:
- Consider a blank slate approach: One thing we like to ask organizations and NGOs facing significant funding cuts is, “If we were starting this charity today, how would we finance it?” We’ve seen this question serve as a great starting point to inspire creative thinking about how to further your mission in today’s reality.
- Board alignment: Convene leadership to clearly articulate how your mission is distinct within the area you serve. Consider when collaboration can amplify the mission.
- Community needs assessments: Use surveys and studies to ensure you’re collectively addressing unmet or evolving needs.
- Shared services or partnerships: Explore collaboration before consolidation (e.g., shared back-office functions, joint programming, co-fundraising).
4. AI and the nonprofit sector: it’s time to embrace this catalyst for deeper impact
AI is no longer on the horizon. It is already shaping how nonprofits operate and engage. When utilized ethically and adopted thoughtfully, AI can help organizations work more effectively and efficiently, creating time and space for higher pay-off activities.
Below are some of the areas where AI can bolster your results:
- Automating administrative and repetitive tasks, freeing staff and volunteers to focus on relationship-building and community impact.
- Helping tailor donor and volunteer communications, ensuring the right message reaches the right person at the right time.
- Predictive analytics are helping to improve fundraising strategies and guide more effective resource allocation.
Keep in mind, AI should be used as an amplifier, not a replacement for your personal, human judgment, compassion, and values.
As the philanthropic sector looks ahead to 2026, organizations that invest in people, relationships, and thoughtful innovation will be best positioned to thrive.
We’ll leave you with this. Above all, this year, remember the incredible power of what you do every day. You provide hope. In divisive and chaotic times, hope is a connector; hope brings people peace. You and your work restore faith in humanity, in your communities and the world. It’s a big responsibility, but you are up for the task, so let’s get to work!