7 Nonprofit Fundraising Trends You Should Know

July 20, 2026

Nonprofits are operating in a period of real funding uncertainty. Shifting federal priorities, changing support for social initiatives, inflation, and pressure on household budgets have made some traditional funding sources less predictable. At the same time, donors expect clearer communication, more personal engagement, and better evidence of impact.

The fundraising environment is not uniformly negative. Charitable giving reached a record $617.2 billion in 2025, while fundraising revenue tracked by the Fundraising Effectiveness Project increased 5%. Yet the number of donors continued to decline, leaving many organizations more dependent on a smaller group of committed supporters.

For executive directors, development teams, boards, and finance professionals, the challenge is no longer simply raising more money. It is building a fundraising strategy that can withstand changes in donor behavior, public policy, and the broader economy.

Key Takeaways

• More money is coming from fewer donors. Fundraising revenue grew in 2025, but donor participation continued to decline. Nonprofits need to balance acquisition with stronger retention and first-year donor engagement.
• Funding diversity is becoming a financial priority. Organizations that depend heavily on one grant, donor, or program remain vulnerable to policy changes and economic pressure.
• Better financial information supports better fundraising. Boards, executive directors, and development teams need timely, accessible reporting to understand donor concentration, program economics, campaign performance, and available resources.

1. More Dollars Are Coming From Fewer Donors

The latest fundraising data presents a complicated picture.

According to the Fundraising Effectiveness Project, fundraising dollars increased an estimated 5% in 2025, marking the strongest revenue growth in five years. However, the number of donors continued to decline.

Overall donor retention edged up slightly from 43.1% to 43.3%, supported largely by repeat donors. Retention among new donors remained essentially flat, indicating that many nonprofits are still struggling to turn a first gift into an ongoing relationship.

This makes donor participation just as important as total dollars raised. An organization may finish the year ahead of its fundraising goal while becoming increasingly dependent on a smaller group of high-dollar donors. That concentration can create significant risk if one or two major supporters reduce or discontinue their giving.

Development and finance teams should monitor more than campaign totals. Useful metrics include:

• Total active donors
• New and returning donors
• First-year donor retention
• Overall donor retention
• Average and median gift size
• Recurring donor participation
• Revenue concentration among top donors
• Donor acquisition cost

These numbers provide a clearer view of whether fundraising growth is broad and sustainable or concentrated among a limited number of supporters.

2. Acquisition and Retention Must Work Together

Finding new donors remains a priority, but acquisition alone will not create sustainable growth.

The OneCause 2026 Fundraising Outlook found that donor acquisition, donor retention, and recurring giving are among the sector’s leading priorities. Heading into 2026, 97% of surveyed organizations planned to prioritize acquisition, while 96% were focused on retention.

That balance matters because every new donor represents both an opportunity and an investment. If new supporters receive a generic thank-you and little meaningful follow-up, the organization must continually spend more time and money replacing donors who never become fully engaged.

A stronger first-year donor experience may include:

• A prompt, personal acknowledgment
• A clear explanation of what the gift helped accomplish
• Follow-up communication that reflects the donor’s interests
• Invitations to relevant programs, events, or volunteer opportunities
• A thoughtful recurring-gift invitation
• Communication before the next donation request

Retention begins with helping supporters feel connected to the mission, not simply adding their information to another fundraising sequence.

3. Funding Diversification Is Becoming More Urgent

Policy priorities can change quickly from one administration to the next. Programs that receive strong federal or foundation support during one period may face cuts, restrictions, or changing eligibility requirements during another. Shifts involving DEI initiatives, public health, education, environmental programs, and social services have already affected funding decisions across the nonprofit sector.

Economic conditions add another layer of uncertainty. Inflation and changes in financial markets influence household giving, corporate sponsorships, foundation assets, and the cost of delivering programs.

A diversified funding model can help reduce the risk created by relying too heavily on a single source. Depending on the organization, that mix may include:

• Individual contributions
• Recurring gifts
• Major donors
• Foundation grants
• Government grants and contracts
• Corporate partnerships
• Membership dues
• Program service revenue
• Fundraising events
• Planned giving
• Endowment income

Diversification should be approached strategically. Every revenue stream carries different administrative costs, reporting requirements, restrictions, and cash-flow patterns. A grant that appears attractive on paper may create financial strain if reimbursements arrive slowly or allowable costs do not cover the full expense of delivering the program.

Scenario planning can help an organization understand what would happen if a major grant disappeared, donor retention declined, or a program generated less revenue than expected. That visibility allows the board and management team to make decisions before a funding change becomes a crisis.

4. Events Continue to Deliver Fundraising and Relationship Value

Events remain an important fundraising channel, particularly when they create meaningful interaction between supporters and the mission.

According to the OneCause 2026 Fundraising Outlook, a combined 77% of nonprofits met or exceeded their 2025 event fundraising goals. That performance reinforces the value of events as both revenue generators and donor-engagement opportunities.

The most useful question is not whether an event should be in person, virtual, or hybrid. It is whether the format creates enough financial and relationship value to justify the investment.

A complete event analysis should include:

• Gross and net revenue
• Direct event expenses
• Staff time
• Sponsorship revenue
• Cost per attendee
• Cost to acquire a new donor
• Number of first-time donors
• Post-event donor retention
• Follow-up gifts
• Volunteer and sponsor engagement

An event may be worth continuing even if its immediate profit is modest, provided it consistently attracts new supporters, strengthens sponsor relationships, or leads to future gifts. Without this information, however, organizations can easily repeat expensive events based on tradition rather than results.

5. Donor Communication Must Demonstrate Relevance and Impact

Donors are receiving more messages from more organizations across email, social media, text, direct mail, video, and online fundraising platforms. Increasing communication volume will not necessarily increase engagement.

Effective donor communication helps people understand:

• What problem the organization is addressing
• Why the work matters now
• What changed because donors contributed
• How funds were used
• What still needs to be accomplished
• How supporters can remain involved

Stories make the mission human. Financial and operating data give those stories credibility. The strongest communication strategies use both.

For example, a beneficiary story can illustrate the value of a program, while accompanying data can show how many people were served, the cost per participant, and the measurable outcome achieved. Together, these details help donors see both the personal and organizational impact of their support.

Nonprofits continue to benefit from high public trust. Independent Sector’s 2025 trust research found that 57% of Americans reported high trust in nonprofit organizations, higher than in any other sector measured. Maintaining that trust requires clear reporting, responsible stewardship, and communication that respects the donor’s intelligence.

6. Nonprofits Are Using Outsourcing to Add Capacity and Expertise

Many nonprofits need specialized financial, fundraising, compliance, human resources, marketing, or technology expertise without having the workload or budget to hire a full internal department for every function.

Outsourcing gives organizations access to experienced professionals while maintaining flexibility. It can also reduce the disruption created by vacancies, turnover, and limited internal capacity.

For finance functions in particular, the value extends beyond filling an open position. A team-based outsourced accounting model can provide a broader range of skills than one internal hire, with defined responsibility for transaction processing, reconciliations, month-end close, reporting, and financial management.

Before choosing an outsourced provider, nonprofits should consider:

• Experience with nonprofit accounting
• Familiarity with restricted and unrestricted funds
• Grant and program reporting capabilities
• Month-end close processes
• Internal controls and approval workflows
• Technology integration
• Reporting support for management and the board
• Continuity when individual team members are unavailable

The right partner should make the organization’s financial operations more dependable and easier to understand.

7. Financial Visibility Is Becoming an Operating Requirement

Fundraising, program delivery, and financial management cannot operate as separate functions.

Executive directors need to know whether the organization has enough cash to support planned programs. Development teams need to understand which grants and campaigns are generating unrestricted revenue. Boards need timely reports that show financial position, program performance, donor concentration, and progress toward strategic goals.

Reliable financial reporting can help answer questions such as:

• How dependent are we on our largest donors?
• Which programs are fully funded?
• Are restricted funds being used appropriately?
• What does each program actually cost to deliver?
• Which campaigns produce the strongest return?
• How many months of operating cash do we have?
• What happens if a major grant is delayed or discontinued?
• Do we have the capacity to expand without weakening existing programs?

Technology can make this information easier to collect and organize, but software alone will not create financial clarity. Accurate bookkeeping, a consistent close process, a useful chart of accounts, and disciplined reporting must come first.

Only then can dashboards, integrations, automation, and analytics provide boards and key stakeholders with information they can trust.

Strengthen Fundraising and Financial Management With Team-Based Nonprofit Accounting

A nonprofit’s ability to pursue its mission depends on the financial systems supporting it.

GrowthForce provides outsourced bookkeeping, accounting, and controller services through a team-based model that includes a Controller, Senior Accountant, and Staff Accountant. This structure gives nonprofits the day-to-day accounting support, financial oversight, and reporting needed to manage grants, monitor programs, prepare for board meetings, and make informed decisions.

With accurate books and timely financial reports, your executive director, development team, and board can work from the same information. They can understand the true cost of programs, evaluate fundraising performance, prepare for funding changes, and direct resources toward the work that matters most.

Ready to build a stronger financial foundation for your mission? Learn more about GrowthForce’s outsourced nonprofit accounting services.

This content is for informational purposes only and should not be considered financial, legal, or tax advice. Contact us to speak with a qualified professional for guidance tailored to your needs.