As nonprofits navigate an increasingly complex landscape, understanding emerging trends and shifting donor expectations is more important than ever. We sat down with Sandy Ross, a trusted advisor in the nonprofit sector, to get her perspective on what 2026 holds for organizations striving to maximize impact. From funding uncertainties and evolving corporate engagement to innovative approaches to donor communication, Sandy shares practical insights and strategies that can help nonprofits thrive in the year ahead.

Q: As you look ahead to 2026, what feels different for nonprofits compared to two or three years ago?

Sandy: There are a lot more funding unknowns. There’s uncertainty around philanthropy, especially with changes to the deductibility of contributions and new minimum thresholds for corporate deductions. On the funder side, what I’m seeing is a real desire to be more involved, people are not just writing checks, but investing in programs and outcomes, which is a really exciting opportunity to engage donors with impact stories, onsite facility tours and on the ground visibility to the work of the mission.

We’re seeing more corporate involvement through employee engagement- giving time, expertise, and service, not just dollars. There is less interest in sponsorships and more interest in grant with impact outcomes. Sponsorships will still exist, but the emphasis is shifting toward funding programs directly. Instead of sponsoring a golf tournament, funders want to see the direct connection to mission activities, and that’s changing how nonprofits think about their asks.

Q: What pressures are nonprofit leaders feeling most right now?

Sandy: Costs across the board are increasing, especially insurance and benefits. Providing competitive benefits while managing rising costs is a real challenge.

Competition for foundation and grant dollars has also intensified because there’s simply less funding available. One positive shift, though, is a growing willingness to collaborate. We’re seeing nonprofits partner with organizations that share similar mission outcomes, whether that’s youth programs, workforce development, or economic impact.

Government funders are encouraging this. Instead of funding one organization to do everything, they’re funding multiple organizations, each delivering on what they do best. Often, one organization takes the lead on the grant, and the others participate through subawards. It’s more efficient, and it strengthens the overall proposal creating a competitive advantage.

Q: When you talk with nonprofit boards, what concerns come up most about 2026?

Sandy: Boards are struggling to maintain consistent funding in an environment that feels anything but consistent. Cybersecurity comes up too, but funding stability is the biggest concern.

Boards are really focused on planning ahead. No executive director wants to hire staff and then have to let them go because funding disappears. So we’re seeing more contingency planning built directly into budgets asking, “What happens if this funding goes away? What is our backup plan?” That kind of contingency planning and risk management is essential.

Q: How have funding strategies shifted recently?

Sandy: There’s much more emphasis on earned revenue and thinking outside the box about how services are delivered. What’s been interesting is how transparent communication with staff is leading to innovation. Sharing difficult financial realities can feel risky, but when organizations are well-run, transparency actually sparks creativity.

I’ve seen team members from all levels come up with the most brilliant cost-saving ideas: consolidating software tools, using less expensive platforms, or restructuring roles to avoid unnecessary hires. When staff are brought into problem-solving, they feel trusted and engaged in the problem solving. This approach, if done well, can build commitment, loyalty, ownership, and stronger organizations overall.

Q: For nonprofits reliant on major donors or corporate sponsors, what should they be doing now?

Sandy: Communication is key. We’re seeing a shift away from large galas and toward events hosted in program spaces. Donors want to see where their dollars are going. They want to meet staff, see programs in action, and understand and see the impact firsthand.

Storytelling is incredibly powerful here. I work with a foundation that funds music programs for underserved youth. They funded a high school summer music camp for at risk teens where they were able to explore instruments, receive 3 meals a day, and work with mentors. One teen student later told a teacher, “That experience changed my life.” When donors hear stories like that, it’s incredibly moving and it reinforces why they give.

Q: Any final trends nonprofits should be watching as they move through 2026?

Sandy: I think deeper corporate engagement is going to be critical. Programs that connect corporate values with community impact, like volunteer initiatives, benefit everyone.

They introduce people to nonprofits earlier in their careers, build long-term relationships, and create new advocates and donors. Nonprofits should be actively reaching out through boards, committees, staff networks asking, “Who do you know? Where can we partner?”

Those connections don’t always lead to immediate dollars, but they build engagement, trust, and long-term sustainability, and that’s what nonprofits need most right now.