Created By: CJ OrrUpdated December 19, 2025 Each year, we publish our perspective on the trends shaping philanthropy and the nonprofit sector in the year ahead. And each year, this article becomes the most-read piece we publish. Why that happens remains something of a mystery—but it’s clear that nonprofit leaders, boards, and fundraisers are actively searching for clarity about what’s coming next. As we look toward 2026, many of the trends influencing philanthropy are no longer emerging. They are solidifying, accelerating, and reshaping how organizations fund their missions. The year ahead will reward organizations that adapt early and intentionally. Revenue Diversification: A Necessity for Success The most significant trend heading into 2026 is the continued diversification of nonprofit revenue. In recent years, and especially following high-profile pullbacks in federal funding, organizations have been forced to confront the risk of overreliance on government dollars. What we are seeing now is a decisive and sustained pivot toward individual giving, with major gifts at the center of that shift. This change is not temporary. We expect organizations to continue reducing exposure to government funding while investing more deeply in major gift strategies for at least the next several years. This realignment toward individual philanthropy is happening within a broader economic context that remains relatively strong. Despite persistent headlines about volatility, the economy continues to move at a solid pace. Artificial Intelligence: A New Reality for Fundraising At the same time, we are firmly in the midst of an AI-driven productivity boom. This is not a speculative trend or a passing technology cycle. It represents a global shift from traditional search-based tools to generative AI systems that fundamentally change how work is done. As productivity increases, economic output follows. Historically, philanthropy (particularly major gifts) tracks closely with economic performance, and we expect that relationship to continue in 2026. The nonprofit sector itself is rapidly catching up to this reality. What began as experimentation with artificial intelligence has moved into practical, operational use. In 2025 alone, Orr Group delivered more than 50 AI trainings for nonprofit organizations and supported multiple clients in assessing and building AI agents designed to save staff time and increase productivity. Those requests are not slowing down. By 2026, AI will be viewed less as an innovation project and more as core infrastructure for nonprofits seeking to do more with constrained teams. The Essential Role of Major and Planned Gifts These technological and economic shifts reinforce another major trend for 2026: the central role of major gifts and planned giving. The convergence of a strong stock market, historic generational wealth transfer, and current tax laws has created one of the most favorable environments for individual philanthropy in decades. Organizations that invest in relationship-driven fundraising, articulate a compelling case for support, and engage donors around long-term impact will be best positioned for growth. Other Key Players: Campaigns and DAFs Campaigns will continue to be one of the most effective fundraising strategies available to nonprofits. In an environment where donors have capacity and organizations face real capital and programmatic needs, campaigns provide focus, urgency, and clarity. Given current conditions, there may be no better time for organizations to pursue campaigns that support both immediate priorities and long-term sustainability. Donor-advised funds will remain a widely used philanthropic tool in 2026. As DAFs become increasingly normalized, organizations that understand how donors use them—and incorporate that understanding into cultivation and stewardship strategies—will have a meaningful advantage. Treating DAFs as an afterthought will increasingly result in missed opportunities. Talent Shifts: DEI, Workplace Culture, and the Labor Market Not all trends are easy to address. Funding for DEI initiatives is likely to remain under pressure in the near term. While we are hopeful that the market has reached a bottom and may begin to stabilize or improve in 2026, organizations pursuing this work will need to clearly articulate outcomes, demonstrate impact, and align efforts closely with mission. The work remains essential, even as the funding landscape continues to evolve. Workplace culture is also continuing to shift. After several years of experimentation, we are seeing a steady movement back toward in-office work, particularly for leadership and experienced roles. This shift is driven less by nostalgia and more by a renewed focus on culture, collaboration, and performance. That trend is likely to continue through 2026. The labor market itself remains tight for experienced professionals. Unemployment is expected to stay low for senior and specialized roles, increasing competition for talent. For nonprofits, this reality underscores the importance of retention, culture, and productivity—once again elevating the role of technology and AI in supporting sustainable operations. Bringing Virtual Capacity into the Sector One of the most notable emerging trends for 2026 is the rise of Virtual Engagement Officers. Advances in AI, avatars, and conversational technology are beginning to enter the fundraising space, with early platforms demonstrating how virtual engagement can scale donor interaction. While still in early stages, this trend has the potential to grow rapidly and reshape how organizations engage donors over time. The Bottom Line Looking ahead, the nonprofits that succeed in 2026 will be those that adapt with intention. They will diversify revenue, invest in major and planned giving, embrace AI as a productivity tool rather than a novelty, and align their strategies with how donors give today—not how they gave in the past. The future of philanthropy is not uncertain. It is already taking shape. And 2026 will reward the organizations ready to meet it. Orr Group’s unique approach involves applying a business mindset and understanding of current and anticipated philanthropy trends to design successful and sustainable fundraising strategies. Get in touch with us today to learn how we can help you raise more money effectively. Contact Us CJ Orr is the Chief Executive Officer of Orr Group. As an expert project and relationship manager with 10+ years of experience in the sector, CJ utilizes data, technology, and financially-backed trends to execute on the development of strategies and tactics to drive effective fundraising plans that meet or exceed targets.
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