Nonprofit Revenue Growth Remains Strong as Funding Pressures Mount

Nonprofit revenue growth held steady in fiscal year 2025, with nearly two-thirds of organizations reporting gains, according to the newly released “2026 Philanthropy Pulse” report from CCS Fundraising. But the same data suggests many teams are trying to sustain momentum in a more volatile operating environment — one shaped by policy uncertainty, staffing strain, and uneven readiness to use data and AI effectively.

The report is based on an online survey conducted in the fourth quarter of 2025, with responses from 618 nonprofits across 47 U.S. states and 18 countries.

“We know that now more than ever, nonprofit leaders today are operating in a truly dynamic and sometimes very complex environment,” Lindsay Marciniak, managing partner of the central U.S. region at CCS Fundraising, said during an online presentation announcing the report. “Your expectations for continued impact continue to rise and amplify. Donor engagement is ever-evolving, and your own teams are balancing ambition with their own capacity.”

Revenue Gains Continue, But the Landscape Is Uneven

In fiscal year 2025, 62% of organizations reported revenue increases. But roughly two in five organizations either stagnated or declined, with 25% reporting revenue losses and 14% reporting no change.

“Each nonprofit organization is experiencing a really varied landscape,” Marciniak said.

That variation is especially visible across organizational size. Among nonprofits with annual operating budgets above $500,000, the majority reported revenue increases. Organizations with budgets of $500,000 or less were less likely to report growth — but nearly three-quarters reported either no change or revenue increases, suggesting stability even without strong expansion.

Sector differences were also pronounced. Public-society benefit and primary and secondary education organizations were among the most likely to report gains, while associations reported the highest share of declines.

Donor Acquisition Is Improving — But Retention Remains a Challenge

About 60% of organizations reported increases in new donors in fiscal year 2025, up from 53% the prior year. At the same time, donor acquisition (68%) and donor retention (48%) remain the most commonly cited fundraising challenges.

“We know that donor acquisition is incredibly important and must be combined with donor retention in order to see those types of revenue increases,” Marciniak said. “At the same time, donor acquisition remains one of the most commonly cited challenges across all organizations.”

When asked about retention strategies, 69% of respondents said they send targeted digital communications, 59% invite donors to in-person events regularly, and 39% set up small-group or individual meetings. These approaches, Marciniak said, are critical for both first-year and loyal donors.

“When you consider your own organization's retention rates, we also encourage you to look at the differences of retention rates across different giving levels,” she said. “That will help you to best dedicate your retention efforts based on different donor experiences.”

Board Culture Is Linked to Nonprofit Revenue Growth

Organizations that prioritize personal giving at the board level were more likely to report revenue growth. Nearly two-thirds of organizations that expect board members to prioritize their own financial contributions reported increases, compared with fewer than half of organizations that primarily expect board members to solicit gifts from others. Notably, 38% of organizations in the latter category reported revenue declines.

Separately, organizations reporting revenue increases were more likely to say their boards participate in fundraising occasionally or very frequently, while organizations with revenue declines reported a higher share of boards that rarely fundraise.

“We can never assume that giving requirements or involvement in fundraising is known among board members,” Marciniak said. “It’s really important to incorporate this regularly into your onboarding, your orientation sessions, board retreats, and other gatherings — and providing board members with resources to be successful.”

Foundation leaders are watching this, too.

“Many foundations ask for the percentage of your board that gives — that’s often something they want to know,” Kira Elbert, executive director at The Elkins Foundation, said during the presentation. “But even outside of the foundation world, boards are your most committed, engaged people.”

Fundraising Teams Remain Stretched

The data suggests nonprofit revenue growth may be holding, but many organizations are sustaining that growth with strained teams. Eighty-three percent of organizations maintained or grew fundraising staff. However, employee retention challenges remain significant. Heavy workload and burnout (62%), limited career growth (52%), and low pay or benefits (44%) were among the most cited issues.

Succession planning also remains limited: Only 18% reported having a formal succession plan, while 41% reported having none.

“Internal capacity is a really important factor,” Marciniak said. “Issues related to organizational readiness, growth pathways, structures, and roles really shape whether organizations are best positioned to add or retain fundraising staff.”

Nonprofits Anticipate Government Declines and Individual Giving Growth

The sharpest year-over-year shift in the data appears in expectations around government funding. Nearly half of organizations (47%) reported negative impacts from recent government policy changes.

Among those reporting negative impacts, 61% cited reduced government funding. But the effects extended beyond dollars. Respondents also reported adjusting program language, reducing budgets, modifying programming, and responding to increased demand for services in the wake of policy shifts.

Looking ahead, 45% expect declines in federal or national government grants, and 30% anticipate declines in state or regional grants this year. In 2024, just 17% anticipated decreased government funding.

Against that backdrop, confidence is strongest in individual giving. In 2026, 57% of organizations expect growth in major gifts, 52% anticipate growth in mid-level gifts, and 49% forecast growth via their annual appeal.

“We really think about our world as being more infinite than finite, which is a problem that all of us in nonprofits get to,” Melissa Arias, chief chapter advancement officer at Make-A-Wish America, said during the presentation. “It's like, ‘Oh, if so-and-so is going to this donor, then I can't.’ As opposed to us now seeing how we can pool our resources, our stories, and our impact together to really put those transformational proposals in front of people.”

The report also highlights opportunities in recurring giving. Annual and one-time gifts dominate current giving patterns, while monthly donors account for just 11%. As organizations look to offset anticipated government funding declines, expanding recurring and multiyear commitments could help stabilize revenue and deepen donor relationships.

“Don't let your fear of doing the thing stop you from getting out and talking to your donors,” Arias said. “... At some point, you just have to do the work.”