Nonprofit & Giving Trends to Watch in 2026: Building Community, Trust, and a Smarter Future

As we head into 2026, the nonprofit world finds itself navigating another year of complexity, opportunity, and transformation. The good news? Philanthropy is rising to meet the moment with more purpose, collaboration, and smarter strategies.

From record-breaking foundation giving to the rise of collective action and tech-powered impact, this year’s trends paint a clear picture: nonprofits that lead with community, transparency, and adaptability will thrive. Below, we’ll explore the top nonprofit and giving trends shaping 2026 and how your organization can harness them.

1. Foundation Giving Is on the Rise and Rooted in Compassion

Despite economic and political uncertainties, foundations are expected to step up in 2026. According to projections from FoundationMark, foundation giving is likely to increase by 5 to 7 percent, totaling up to $122 billion in funding.

This growth is a values-driven response to rising community needs and decreasing federal support. Foundations are returning to their core purpose: to give more when times are tough.

Foundations are already responding with targeted investments ranging from food security and veterans’ services to emergency relief and public media. And this generosity is fueled by a sense of long-term mission and shared responsibility.

What this means for nonprofits:
If seeing increased demand and rising costs, now’s the time to deepen your relationships with foundation funders. Communicate your impact clearly, show how your work builds long-term resilience, and position your organization as a steady hand in uncertain times.

2. Giving Goes Local and Collective

In 2026, expect to see a shift from individual giving to collective giving. From neighborhood donation drives to giving circles and mutual aid networks, more people are pooling their resources to create shared impact and revitalizing civic life.

This kind of localized, participatory giving does more than raise funds. It builds trust, strengthens community ties, and reduces polarization.

What this means for nonprofits:
Whether you’re a grassroots organization or a national nonprofit, lean into community-led models. Support or partner with local initiatives and invite donors to participate in decision-making when possible. Transparency and shared ownership go a long way toward building lasting support.

3. Belonging Beats Branding

Loneliness is on the rise, and people are seeking connection rather than causes. In 2026, belonging is becoming a key driver of donor retention. Supporters want to feel like part of something bigger than themselves, especially across digital communities.

This shift is particularly visible among younger donors like Gen Z, who form strong online identities around shared values and affiliations. It’s not enough to broadcast your mission. You need to build a space where people feel seen and involved.

What this means for nonprofits:
Reevaluate your engagement strategies. Are your emails, social content, and donor experiences truly inviting people in? Build inclusive narratives, spotlight community voices, and create touchpoints that help supporters feel like insiders.

4. Generosity is Changing, Not Declining

Economic strain is real. Inflation, debt, and stagnant wages are affecting household giving behavior, but that doesn’t mean generosity is disappearing. Donors are still giving, but they’re giving differently.

Smaller, recurring gifts are on the rise. Also, people see volunteering as a gift of time instead of a one-time donation. This drives the need for  meaningful engagement instead of flashy appeals. The $10 monthly donor has officially arrived, and they want to know if their gift makes a difference.

What this means for nonprofits:
Don’t chase only the big checks. Diversify your revenue streams. Prioritize clear, specific impact stories. Celebrate small gifts as loud as major ones. And give supporters other ways to contribute from advocacy actions to volunteer roles.

5. AI Is Here to Stay, But the Playing Field Isn’t Even

Artificial intelligence has become a staple in nonprofit operations, from donor research to communication workflows. But adoption is uneven, especially for smaller organizations that lack the time, budget, or expertise to keep up.

Funders are noticing. In 2026, more foundations will work to bridge the AI knowledge gap by supporting training and tools. Some are even exploring AI to enhance equity in grantmaking.

What this means for nonprofits:
If you’re using AI, be intentional. Train your team. Ask critical questions. Don’t just automate. Use AI to strengthen relationships, streamline operations, and unlock insights that help you serve better.

6. Impact Investing Quietly Gains Momentum

While not grabbing headlines, impact investing is quietly reshaping the philanthropic landscape. More individual donors and family foundations are moving beyond traditional grantmaking to integrate mission-aligned investments into their strategies.

This strategy blends funding with advocacy, partnerships, and equity-focused portfolios. It’s a trend that reflects a bigger question donor are asking in 2026: How can our money work harder for systemic change?

What this means for nonprofits:
If your organization can demonstrate long-term social returns, now is the time to explore new capital models. Think beyond grants and investigate program-related investments, social impact bonds, or partnerships with values-aligned investors.

7. Fundraising Is About Rebuilding, Not Returning to “Normal”

Nonprofits aren’t just recovering from past crises. They’re actively rebuilding systems, infrastructure, and trust. And in 2026, that rebuilding mindset will shape how donors think about impact.

Funders want to invest in resilience, including the capacity, talent, and long-term sustainability of organizations doing critical work. This is especially true in communities that were disproportionately affected by the pandemic, natural catastrophes, and funding inequities.

What this means for nonprofits:
Be honest about where your organization stands and what rebuilding really requires. Don’t sugarcoat your needs. Instead, paint a picture of progress, consistency, and community leadership. Donors want to invest in futures, not just fixes.

Looking Ahead: 2026 Will Be the Year of Strategic Generosity

Across every trend, one message comes through loud and clear: people still want to give. Foundations are increasing their payouts. Neighbors are pooling resources. Donors are seeking meaning, connection, and trust.

But generosity in 2026 is strategic. It's shaped by purpose, informed by data, and driven by community values. Whether it's the rise of giving circles, the quiet expansion of impact investing, or a renewed focus on equity and technology, the sector is evolving.

How to Thrive in 2026:

• Invest in your community both locally and digitally.

• Adopt tech thoughtfully, especially AI, with an eye on ethics and equity.

• Diversify your funding through small gifts, major donors, earned revenue, and more.

• Build trust through transparency, belonging, and authentic storytelling.

2026 doesn’t have to be overwhelming. With a clear vision and community-centered strategy, your nonprofit can navigate this moment with resilience and purpose and help shape the future of giving in the process.