Dear friends,

Happy new year! I hope the holidays offered you a welcome break and that you feel ready for 2026.

It is my tradition to kick off the year with an assessment of major strategic issues for our industry. We’ve come a long way since last January, which marked a deep and difficult political shift. In 2026, we will face related challenges, but we will also have new opportunities to make a positive impact.

Here are 9 opportunities and challenges that I expect to shape nonprofit fundraising in the coming year:

(1) Collective Action

Advocacy will continue to be a major theme as we navigate challenges presented by Republican control of the federal government. Collective action and power are our best defense against threats to the sector, as we saw last year with several key lawsuits and the swift reversal of detrimental changes to the Combined Federal Campaign. If you haven’t already, please follow The Nonprofit Alliance on LinkedIn and through their newsletter for the latest updates and action alerts. On behalf of Avalon and our clients, I intend to fully support this critical work that we must do together.

“Collective action and power are our best defense against threats to the sector.”

(2) Financial Resilience

Nonprofits under direct attack and those who serve communities under attack from the Trump administration are particularly challenged. One place I find hope is in fundraising data, which confirms the public’s outpouring of support for these missions. In addition, I am encouraged by the strategies nonprofits have implemented to evolve their business models and respond to lost federal funding. Many organizations had to change their models dramatically during the pandemic, and today they are flexing those muscles again to navigate escalated political and funding crises. For all of us, this means digging deep, identifying new opportunities, and implementing necessary changes.

(3) High Risk for Burnout

This environment has escalated stress in a sector that is already high risk for burnout. As leaders, we must do everything in our power to eliminate stressors where we can, create the conditions for rest and recovery, and lead by example. Given the issues, the temptation to overwork is understandable. However, it is neither sustainable nor an effective long-term strategy. Elite athletes know this and build recovery into their work—not as a luxury, but as a fundamental. In 2026, I hope we will be similarly proactive in guiding ourselves and our teams away from burnout. Without clear thinking and a deep well of energy, we cannot do what we need to do.

“Without clear thinking and a deep well of energy, we cannot do what we need to do.”

(4) Macro Changes in Philanthropy

The donor landscape is beginning to change in earnest. Two major dynamics are at play: the imminent generational wealth transfer and growing enthusiasm for “new philanthropy” that targets deep systems change. In addition, we see continued drift towards higher-dollar philanthropy across industry benchmarks. Looking ahead, 2026 tax code changes will further shape these patterns, as major donors adjust their strategies and lower-dollar donors access new benefits. Fundraisers must understand these changes and ensure that messaging has comprehensive, targeted appeal. We will need to simultaneously embrace new expectations and stay grounded in core practices like great storytelling, building trust, and inviting people in at every giving level. Discerning which fundraising practices must change and which are evergreen will be essential.

(5) A Message of Hope

Faced with doom scrolls, depressing news cycles, and intersecting crises, donors deserve a reason to believe. Fundraisers must answer this call with a message that offers hope. A strong message of hope not only conveys optimism, but also remains honest and grounded in authentic needs, possibility, and impact. Nonprofits offer the hope of action, not wishful thinking—and it is both our opportunity and our responsibility to call donors in. By donating and engaging meaningfully with your organization, donors will not only see but become the change they seek.

“Nonprofits offer the hope of action, not wishful thinking.”

(6) Integrated, Adaptive, Data-Driven Digital

IWe experienced a significant surge of support across digital channels in December 2025, with meaningful revenue growth driven by both GivingTuesday and year-end campaigns. As we look ahead to 2026, nonprofits are entering into a rapidly evolving digital landscape defined by fierce competition for attention and will therefore need integrated, adaptive, data-driven strategies to stay ahead. Winning digital will incorporate an entire ecosystem of channels and platforms, all of which must constantly evolve to incorporate new opportunities and information. This includes everything from email to texting, to websites and frictionless payment, to paid media, paid search, paid social, and niche digital channels that can uniquely target your audience. Avalon’s approach is to ensure that every client has the right mix for their budget and goals, along with the data and analytics they need to optimize performance. For specific insight on digital strategies by channel, see Avalon Digital’s 2026 channel outlook.

(7) Attribution and ROI in a Multichannel World

Rising costs continue to sit in the back of fundraisers’ minds. Fortunately, Avalon clients have not been negatively affected by tariffs, but the precarity of the Postal Service remains a concern, and digital costs fluctuate whenever platforms evolve or competition for ad space intensifies. Whatever comes, we are confident we know how to manage costs strategically. Avalon will continue to utilize and develop tools for strategic segmentation and analysis, always reassessing and never assuming costs will simply carry forward. Finally, multichannel attribution, though complex, is critical: We must understand the interplay between channels, so we can be nimble and shift investment where it is returning the strongest donors. This is our constant commitment for every client, budget cycle, and campaign.

(8) Intentional Engagement with AI

Both nonprofits and consumers became more comfortable with AI in 2025, and I expect that to continue. AI is here to stay, so professionals must learn it or be left behind. However, we must also understand how AI fits within our values, employ it judiciously, and advocate for environmentally sustainable solutions. Nonprofit values tend to lead with human interest first, and so should your approach to AI. This will be a complex judgment for every organization, but it’s worth the effort to develop an intentional strategy. The time is now, if you haven’t already begun.

(9) Authentic Equity and Inclusion

Avalon’s commitment to equity and inclusion will not stop. And I see you as well, still doing the work, even as you manage the constraints of the current political environment. Together, we will keep this flame alive and continue to pursue the authentic change that is needed. Brands can no longer hide behind flowery statements and the distraction of performative showcasing; there is only the real work. 2026 is an opportunity for each of us—personally and as organizations—to recommit and focus on action. Avalon will continue to be at the leading edge of Fundraising Choice Points , and we will keep advancing equity internally and in our hiring. Rest assured, we will continue to engage with our clients on this critical issue.

“Together, we will keep this flame alive.”

To Avalon staff and clients, and to all our colleagues in the nonprofit sector:

We are fortunate that our profession is so collegial, ethical, and dedicated to making a difference. Though we know we will face challenges, we also know we are ready—and together we are strong. Thank you for your part in this community and for being an Avalon friend. I know we will accomplish great things together in 2026!