Nonprofit Industry Trends To Capitalize On In 2026

The nonprofit sector has been riding the momentum of its rebound in 2024 and 2025, with charitable giving climbing back toward record levels and digital ad spend rising by double digits. But even as the numbers trend upward, supporter habits are shifting fast. Email now plays a much smaller role in online revenue, SMS lists keep growing, and GivingTuesday broke another record with $3.6 billion raised. The strongest gains are happening in mobile-first and digital commerce channels—signaling a transformation already reshaping the year ahead.

Digital Transformation Becomes Essential

For years, digital transformation was a long-term aspiration for many nonprofits. Now it’s a requirement. With fundraising once again cited as the sector’s biggest challenge, organizations are rapidly expanding their digital toolkits. Eighty-five percent say they’ve updated their fundraising strategies in the past year to incorporate more digital channels, stronger data practices, and increased investment in marketing.

AI is becoming a common support tool, assisting with marketing, program design, impact reporting, and internal operations. More nonprofits have also tightened their data protection policies and cybersecurity practices. Supporters, too, are fueling this shift: although total online giving grew modestly in 2024, monthly giving rose 5% and now accounts for nearly a third of all online revenue.

As demand increases but staffing stays flat, nonprofits are looking for systems that consolidate fundraising, donor engagement, events, and ecommerce into one place—reducing data silos and automating manual tasks. Unified platforms make it easier to manage recurring gifts, sell event tickets or merchandise, and keep donor profiles and revenue records under one roof.

Diversifying Revenue Streams

Depending heavily on one funding source has always been risky, especially when government dollars fluctuate. Giving in the U.S. still climbed to nearly $600 billion in 2024, but organizations are spreading their bets across donor-advised funds (DAFs), ecommerce-based earned income, and corporate partnerships.

DAF giving remains a major opportunity. Nonprofits raised 13 cents from DAFs for every online revenue dollar in 2024, and even with contributions dipping, total DAF assets rose to $251.5 billion—leaving a massive pool of resources yet to be granted.

Earned income also remains an underdeveloped frontier. A late-2024 Urban Institute survey found that sales from merchandise, events, or educational programs make up only 11% of public charity revenue. Running these revenue streams through a single platform can help smooth cash flow, boost supporter lifetime value, and generate more unrestricted funds.

The Rise Of Nonprofit Social Enterprises

Mission-driven commercial ventures—better known as social enterprises—are becoming one of the most powerful forms of earned income. Globally, more than 10 million social enterprises generate nearly $2 trillion a year and create 200 million jobs. They’re also global leaders in inclusion, with about half led by women.

For donors and partners, supporting a social enterprise offers a way to invest in equity and long-term sustainability, not just short-term programming.

Technology Trends Reshaping Nonprofit Work

AI and Donor Engagement:
More than half of nonprofits are experimenting with AI, though many still lack a formal strategy. Early adopters are using AI to segment donors, automate supporter journeys, draft tailored messages, and synthesize donor conversations. Clear privacy and data-use guidelines are becoming essential as these tools scale.

Unified Commerce Replacing Fragmented Systems:
Many nonprofits run donations, events, and merchandising on separate systems, resulting in higher costs and scattered supporter data. Unified commerce—centralizing transactions, POS systems, inventory, and marketing—creates a single, coherent view of every supporter interaction and enables teams to launch new campaigns or events more efficiently.

Mobile-First Giving:
Even though more than half of nonprofit website traffic comes from mobile devices, most online revenue still comes from desktop, and mobile gifts are typically much smaller. Organizations are now prioritizing mobile-friendly donation flows, digital wallets, and one-tap payment options to close the gap. Peer-to-peer texting is also on the rise, especially among Gen Z and millennial supporters.

Data Analytics Powering Impact:
Only 10% of nonprofits feel they have a strong data culture. The biggest obstacles aren’t tools—they’re training, staffing, and inconsistent data practices. Building a foundation of clean data, clear governance, and staff readiness is essential before advanced analytics or AI can deliver meaningful results.

Donor Engagement And Fundraising Shifts

The Move From One-Time Gifts to Subscriptions:
Donor retention continues to decline, and one-time giving has flattened. Monthly giving, however, is steadily rising and now accounts for nearly a third of online revenue. Organizations with robust sustainer programs, like public media outlets, see nearly half their online funds come from recurring gifts.

Social Commerce Takes Center Stage:
Social shopping surged to $71.6 billion in the U.S. in 2024, fueled heavily by TikTok. Nonprofits are increasingly engaging influencers and creators to showcase their work and drive sales, donations, or event attendance. Behind-the-scenes content and authentic storytelling are becoming more effective than polished campaigns.

Personalization at Scale:
As email performance declines, nonprofits are shifting to targeted donor journeys. Grouping supporters by behavior, using triggers to send timely messages, and sharing personalized impact updates are all helping organizations deepen engagement and encourage repeat giving.

Economic And Workforce Pressures

Giving rose slightly after accounting for inflation in 2024, but donor counts fell and retention slipped. Nonprofits increasingly rely on fewer donors giving larger amounts.

Corporate giving, however, is strong—community investment as a share of profits grew by 38% between 2021 and 2023, and employee volunteerism increased sharply.

Workforce challenges remain significant. Burnout, high vacancy rates, and limited staff training budgets make it difficult to keep pace with growing digital demands. Remote and hybrid roles continue to draw far more applicants than on-site positions, reshaping nonprofit workplaces. Meanwhile, volunteerism has rebounded, with virtual and skills-based opportunities expanding access.

Compliance And Regulatory Updates

As more nonprofits explore ecommerce and earned income, tax compliance is becoming more complex. Many organizations are still unaware that unrelated business income of $1,000 or more requires filing Form 990-T, or that they may be responsible for sales tax in states where they sell goods.

Data privacy laws are also tightening. New rules in Delaware and New Jersey now affect nonprofits handling large volumes of consumer data and introduce new consent requirements for teens.

Sustainability And Environmental Expectations

Environmental accountability is becoming a standard expectation. Organizations are beginning to measure their carbon footprints using DOE and EPA frameworks and adopting climate targets aligned with global sustainability standards.

Charity retailers are also leaning into circular economy models, tracking not just financial performance but also reused goods, carbon savings, and community impact. Partnerships with local governments are helping expand these efforts and lower waste-related costs.

Source: Shopify