Strategies for Nonprofit Resilience in 2026 and Beyond

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As nonprofits approach year-end 2025, they're likely to face several challenges due to disruptions in fundraising and philanthropy caused by uncertainties in local and federal funding streams. We offer strategies and tactics for increasing revenue and preventing donor fatigue.

Diversifying revenue sources

Our work with large and small nonprofits suggests that in the face of these challenges, we must be ready to adopt a variety of strategies to diversify revenue streams, reducing reliance on a single source of funding and ensuring greater financial stability.

Below are key strategies nonprofits should consider. By implementing a combination of these strategies, nonprofits can create a more resilient and diversified revenue base, enabling capacity to better withstand economic uncertainties and continue fulfilling their missions.

Build a culture of philanthropy

Board engagement. Encourage board members to contribute financially and leverage their networks for fundraising.
Volunteer fundraising. Empower volunteers to take an active role in fundraising efforts.

Build membership programs

Membership fees. Offer memberships with benefits such as exclusive content, discounts or access to events.
Tiered membership levels. Provide different levels of membership to appeal to a broader range of supporters.

Develop individual giving programs

Major donor cultivation. Build relationships with high-net-worth individuals who can provide significant contributions.
Recurring giving programs. Encourage donors to set up monthly or annual contributions to create a steady income stream.
Planned giving. Promote legacy giving options, such as bequests, trusts or annuities, to secure long-term funding.

Engage in advocacy and policy work

Advocate for policy changes. Work to influence policies that increase funding opportunities for nonprofits.
Community engagement. Build strong relationships with local communities to gain grassroots support and funding.

Expand corporate partnerships

Sponsorships. Partner with businesses to sponsor events, programs or campaigns.
Cause marketing. Collaborate with companies on campaigns where a portion of sales is donated to the nonprofit.
Employee giving programs. Work with corporations to establish workplace giving or matching gift programs.

Explore government and public funding

Federal and state grants. Apply for government grants that align with the nonprofit's mission.
Contracts for services. Partner with government agencies to deliver services on their behalf.
Advocacy for funding. Engage in advocacy efforts to secure public funding for specific programs or initiatives.

Host fundraising events

Signature events. Organize annual galas, auctions or charity runs to engage donors and raise funds.
Peer-to-peer fundraising. Empower supporters to raise funds on behalf of the organization through personal campaigns.
Virtual events. host online events, such as webinars, virtual concerts or crowdfunding campaigns, to reach a broader audience.

Invest in endowments

Build an endowment fund. Establish an endowment to generate investment income for long-term sustainability.
Encourage endowment gifts. Solicit contributions specifically for the endowment fund from major donors or through planned giving.

Launch earned income ventures

Fee-for-service programs. Charge fees for services provided, such as training, consulting or educational programs.
Social enterprises. Develop mission-aligned businesses, such as thrift stores, cafes or product sales, to generate revenue.
Licensing and royalties. Monetize intellectual property, such as training materials, research or branded merchandise.

Leverage technology for digital fundraising

Crowdfunding platforms. Use platforms like GoFundMe, Kickstarter or Classy to raise funds for specific projects.
Online giving campaigns. Create targeted digital campaigns, such as Giving Tuesday initiatives, to attract online donations.
Social media fundraising. Use social media platforms like Facebook, Instagram or TikTok to engage donors and promote fundraising efforts.

Pursue foundation grants

Research grant opportunities. Identify and apply for grants from private foundations, community foundations and corporate foundations.
Collaborative proposals. Partner with other nonprofits to apply for larger, collaborative grants.
Capacity-building grants. Seek funding specifically for organizational development and infrastructure improvements.

Strengthen partnerships and collaborations

Collaborative fundraising. Partner with other nonprofits or community organizations to pool resources and attract larger donors.
Shared services. Collaborate on shared services, such as joint marketing or administrative functions, to reduce costs and free up funds for mission-related activities.

Use data and analytics

Donor segmentation. Use data to identify high-potential donors and tailor fundraising strategies to their preferences.
Impact measurement. Demonstrate the organization's impact through data to attract funders who prioritize measurable outcomes.

Overcoming donor fatigue 2026

Donor fatigue can hamper efforts to diversify revenue sources. Nonprofits can address donor fatigue effectively by implementing thoughtful strategies that re-engage donors, build trust and foster long-term relationships.

Below are key approaches to consider as you enter 2026. By focusing on these strategies, nonprofits are more likely to combat donor fatigue, strengthen relationships and sustain donor engagement over the long term.

Build long-term relationships

Focus on stewardship. Engage donors year-round, not just during fundraising campaigns, to build trust and loyalty.
Create a donor journey. Develop a roadmap for donor engagement, from initial contact to long-term involvement.
Offer recognition. Publicly acknowledge donors (with their consent) through newsletters, social media or events.

Communicate transparently

Be honest about challenges. Share the nonprofit's challenges and how donor support is critical to overcoming them.
Provide regular updates. Keep donors informed about how their contributions are being used and the progress being made.
Acknowledge economic pressures. Recognize that donors may be facing financial challenges and emphasize that any level of support is appreciated.

Diversify fundraising approaches

Offer non-monetary ways to contribute. Encourage donors to volunteer, advocate or share your mission with their networks.
Introduce new campaigns. Launch creative and engaging campaigns, such as peer-to-peer fundraising, crowdfunding or matching gift programs.
Host events. Organize virtual or in-person events that provide value to donors, such as workshops, networking opportunities or exclusive experiences.

Focus on impact storytelling

Share success stories. Highlight the tangible impact of donor contributions through stories, videos or testimonials.
Use data to demonstrate results. Provide clear metrics and outcomes to show how donations are making a difference.
Showcase beneficiaries. Put a human face on your mission by sharing stories of individuals or communities helped by the nonprofit.

Foster a sense of community

Create donor networks. Build communities where donors can connect with each other and feel part of a larger mission.
Engage in two-way communication. Solicit feedback from donors and involve them in decision-making processes.
Celebrate milestones together. Share organizational achievements and celebrate them as a collective success with donors.

Leverage technology

Use CRM tools. Implement donor management systems to track engagement and tailor communications.
Automate communications. Use email automation to send timely and relevant updates without overwhelming donors.
Engage on social media. Use social platforms to connect with donors in a less formal and more interactive way.

Offer flexible giving options

Recurring donations. Encourage donors to set up monthly or quarterly contributions to spread out their giving.
Planned giving. Promote legacy giving options, such as bequests or charitable trusts.
In-Kind donations. Accept goods or services as an alternative to monetary contributions.

Personalize donor engagement

Tailored communication. Use donor data to personalize messages, acknowledging past contributions and aligning appeals with their interests.
Segment donor base. Group donors by giving history, preferences or demographics to send targeted and relevant communications.
Express gratitude. Regularly thank donors through personalized notes, calls or small tokens of appreciation.

Reduce over-solicitation

Limit fundraising appeals. Avoid bombarding donors with frequent requests for contributions.
Space out campaigns. Plan fundraising campaigns strategically to avoid overwhelming donors.
Respect donor preferences. Allow donors to choose how often they want to be contacted and through which channels.

Reignite passion for the mission

Reinforce the mission. Regularly remind donors of the nonprofit's purpose and the importance of their support.
Involve donors in the mission. Invite donors to participate in volunteer opportunities or site visits to see the impact firsthand.
Celebrate donor impact. Make donors feel like heroes by emphasizing their role in achieving the nonprofit's goals.

Gallagher's role in addressing these challenges

Gallagher can support nonprofit clients with the following:

Risk management solutions. Helping nonprofits identify and mitigate risks associated with funding disruptions.
Strategic planning. Assisting in the development of diversified funding strategies and contingency plans.
Employee benefits. Offering tailored benefits packages to attract and retain talent.
Organizational wellbeing. Providing resources to enhance financial, physical and emotional wellbeing for nonprofit staff.
Insurance solutions. Delivering comprehensive insurance coverage to protect against operational risks.

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