At the start of 2025, we shared some predictions on the trends we believed would shape the nonprofit sector amid political uncertainty, economic pressure, and evolving expectations from donors, the workforce, and the broader public. As the new year begins, we took a minute to look back at how we did. Some predictions largely held true. Others evolved in ways worth noting. Taken together, they offer useful clues about what nonprofits should watch for as they prepare for 2026.
Here is our 2025 scorecard.
1 | Creative Revenue Strategies
Grade: A-
Our expectation that nonprofits would need to move beyond business as usual in revenue generation has largely proven accurate. Many organizations have continued to diversify income through individual giving, earned revenue models, and partnerships. While this trend has been building for years, it gained momentum in 2025 as organizations sought to offset volatility in public funding and faced increased competition for foundation support. Multi-year giving is on the rise and now extends beyond campaigns. However, the anticipated rebound in individual giving has been uneven, and the impact of year-end campaigns and donor engagement strategies in 2025 in helping to stabilize budgets remains to be seen.
Where this trend exceeded expectations was in the sophistication of financial planning. Increasingly, nonprofits are moving beyond static annual budgets toward scenario modeling, multi-year forecasting, and stress-testing to inform strategic decisions. Our team has worked with clients to integrate these tools directly into strategic planning, ensuring that long-term vision is paired with a realistic financial roadmap. Donor and boardinterest in financial realities has also intensified, reinforcing the value of transparency and strong financial storytelling connected to your larger organizational mission and vision.
2 | Wellness and Burnout
Grade: A
Burnout remains one of the most persistent challenges in the sector, and the emphasis on staff wellness was well placed. Flexible work arrangements, mental health benefits, and workload recalibration have moved from experimental to expected in many organizations. However, leaders are also recognizing that wellness cannot be solved through perks alone. Structural issues such as chronic understaffing, unclear priorities, and underinvestment in management capacity continue to drive stress.
In response, more organizations are exploring right-sized staffing models, clearer role definition, and flexible funding sources to better support personnel costs. The most effective approaches to well-being pair such initiatives with clearer decision-making frameworks and more realistic definitions of success. While stepping away from day-to-day challenges and taking time to assess conditions and plan strategically can feel daunting, it is essential for sustaining staff and advancing mission.
3 | Leadership Transitions and Succession Planning
Grade: B+
Leadership turnover has continued at both executive and board levels, validating concerns raised earlier this year. While awareness of the issue has grown, formal succession planning still lags. Many organizations remain reactive rather than prepared when transitions occur.
That said, we have seen greater openness to interim leadership models, shared leadership structures, and targeted investment in leadership development and board training. These approaches are helping organizationsweather transitions with less disruption and may signal a longer-term shift in how leadership continuity is defined across the sector.
4 | Technology and AI
Grade: A-
The prediction that technology and data demands would accelerate has proven accurate, particularly around AI adoption in fundraising and communications. At the same time, many nonprofits have discovered that technology investments require more time, training and change management than anticipated. Cybersecurity risks have also become more salient, especially for organizations handling sensitive client or donor data.
Organizations that have seen the greatest benefit are those that pair technology adoption with clear policies, staff education and realistic expectations about capacity and cost. Embracing AI as a tool for
5 | Mission Clarity
Grade: A
In an environment marked by scrutiny and polarization, mission clarity has emerged as a stabilizing force. Organizations with a well-articulated purpose and aligned programs have been better positioned to navigate controversy, donor questions, and internal debate. This prediction has proven especially relevant as nonprofits face increasing scrutiny around their position on social and political issues.
What We Didn’t Expect
While 2025 dawned with the promise of almost certain change, few anticipated just how quickly and comprehensively those changes would impact the sector. A series of federal policy shifts impacting agency operations, funding and legislation have had significant and costly effects across the nonprofit ecosystem. Periods of volatility on the stock market have added to uncertainty, affecting donor confidence and financial planning.
The sector’s response has been equally swift. Legal action has delayed or mitigated some funding disruptions. Organizations are engaging more thoughtfully in how they communicate their mission to maintain trust and bring stakeholders along. And the connection between money and mission has taken on new urgency, particularly as financial modeling and strategic planning become essential tools for navigating an unpredictable funding environment.
Closing Thought
The throughline from 2025 to 2026 is not constant change, but intentional choice. Nonprofits that invest in clarity, planning and people are better positioned to adapt without losing sight of their mission. As uncertainty continues to shape the operating environment, strategic focus remains one of the most powerful tools available to nonprofit leaders.
In the coming weeks, we will share a follow-up piece looking ahead to what nonprofits can expect in 2026, and how leaders can prepare for the next chapter.
In the meantime, reach out to us to learn more about how we can help with strategic planning, financial modeling, and scenario planning. For a deeper look at how data can support nonprofit leadership decisions,explore Carey & Co’s whitepaper, The Metrics that Matter: Transform your Nonprofit Data into Leadership Excellence.
References
Brazen Consulting and Accounting, Shared Leadership in Action: Perspectives, Principles, and Practices.
Center for Effective Philanthropy, State of Nonprofits 2025: What Funders Need to Know.
Nonprofit Financial Commons, 2025 and Beyond: Phased ACTION Guidance on Nonprofit Finance.
RSM, How AI and Human Oversight can Strengthen Nonprofit Cybersecurity link
Techsoup | TAPP Network, The State of AI in Nonprofits: Benchmark Report on Adoption, Impact, and Trends 2025.
