2026 Giving Trends: What Nonprofits Should Expect This Year (and How to Prepare Financially)

Melanie Kirton | Jan 12 2026 14:15

If you lead a nonprofit in Texas, you’re likely feeling two things at once:

 

  • The need in your community isn’t slowing down.
  • Fundraising feels harder—even when the headlines say giving is “up.”

 

Both can be true.

 

Nationally, charitable giving reached $592.5B in 2024, signaling that generosity remains strong. But many nonprofits are operating in a “dollars up, donors down” environment—where total giving increases while the number of donors declines. In that reality, retention and repeat giving become the make-or-break factors for financial stability.

 

At Financial Affairs, we work exclusively with nonprofits. As we head into the new year, we’re calling January the start of “The Year of Changing Donor Behavior.” Below are the giving trends we expect to matter most in 2026—and the finance-forward actions that will help your organization stay steady, credible, and fundable.

 

Trend 1: Donor participation is soft—so retention becomes the growth engine

 

Recent fundraising data continues to show a mixed picture: more dollars raised, fewer donors, and persistently low retention. Early 2025 reporting shows donor counts declining while total dollars increased, with average retention rates hovering in the high teens—an unsustainably low base for most missions.

 

What this means for your nonprofit

 

When donor volume declines, you can’t “market your way out” with more campaigns alone. Growth comes from keeping more of the support you’ve already earned.

 

Finance-forward moves

  • Track retention as a core KPI (overall, first-time donor conversion, and recurring donor rate).
  • Build a cash-flow narrative that includes retention—predictable gifts reduce volatility.
  • Budget for stewardship as a program expense, not an “extra” task.

 

Trend 2: Tax changes may expand small giving—but shift donor behavior

 

2026 is shaping up to be a tax-change year, which will influence how donors decide when and how to give.

Changes donors and nonprofits are watching include:

 

  • A potential above-the-line charitable deduction for non-itemizers (up to $1,000 single / $2,000 joint).
  • A proposed 0.5% AGI floor for itemizers—only giving above that threshold would be deductible.
  • Possible caps on the value of itemized deductions for high-income taxpayers.
  • A 1% floor before charitable deductions apply to corporate donors.

 

What this means for your nonprofit

  • You may see more small or first-time donors—but only if onboarding and acknowledgments are fast and accurate.
  • You may also see shifts in gift timing (bunching, year-end acceleration), which can create lumpy cash flow without strong forecasting.

 

Finance-forward moves

  • Tighten receipting workflows and gift documentation.
  • Coordinate development and finance so campaign reporting aligns with donor records.
  • Update board messaging: “Tax incentives may change, but trust is what keeps donors.”

Important note: This is general education, not tax advice. Encourage donors to consult their tax professional for personal planning.

 

Trend 3: Younger donors expect speed, transparency, and proof—without friction

 

A growing cohort of donors expects giving to feel like the rest of their digital life: fast, personalized, and transparent. At the same time, they expect clearer, more frequent communication about impact.

In practice, the donor experience is no longer just a fundraising issue—it’s also a finance and operations issue. When numbers are slow, unclear, or difficult to explain, trust erodes.

 

Finance-forward moves

  • Produce a one-page quarterly impact + finance update(simple numbers paired with outcomes).
  • Use consistent program and fund coding to report outcomes tied directly to dollars.
  • Explain restricted vs. unrestricted funds in plain language—and clarify what operating support actually enables.

 

Trend 4: Funding volatility increases the value of flexible support

 

Nonprofits continue to operate amid economic and policy uncertainty. Many funders are responding by prioritizing general operating support and multi-year commitments —especially when leadership demonstrates financial clarity and adaptability.

 

What this means

Your ability to articulate and defend financial decisions matters more than ever. Funders want confidence that leadership can adapt while remaining accountable.

 

Finance-forward moves

  • Strengthen scenario planning (best-case, expected, and worst-case).
  • Track and communicate cash runway and key risks quarterly.
  • Ensure restricted fund activity and releases are easy to explain.

 

Trend 5: Storytelling wins—but only when finance can back it up

 

Donors don’t stay because you post more. They stay because they understand what changed—and because they trust how resources are stewarded.

 

The strongest retention strategy for 2026 is the partnership between: development (story) + finance (truth and clarity).

 

A simple standard to adopt

 

Every campaign recap or quarterly update should clearly answer:

  • What came in?
  • What changed because of it?
  • What happens next?

(This won’t apply to every situation, but when it does, it also strengthens audit readiness and governance.)

 

Your 2026 action plan (start here)

 

If donor behavior is changing, your response doesn’t need to be louder—it needs to be cleaner.

  • Build a monthly retention dashboard.
  • Fix coding so fundraising maps cleanly to programs in the GL.
  • Speed up receipts and acknowledgments.
  • Create a donor-ready quarterly finance + impact update.
  • Budget intentionally for stewardship and recurring giving growth.
  • Train your board to talk about clarity and trust—not just volume.

 

Download: Donor Retention Checklist (Finance-Focused)

 

We built a practical checklist you can implement in 30–90 days to strengthen retention through financial clarity.

 

Click here to download checklist.

 

Sources & Further Reading