State of Good for Jan 12, 2026
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week
Donors & Industry Indicators
The Paradox of 2026: Fewer Donors, Bigger Gifts
The latest Fundraising Effectiveness Project report reveals a stark reality reshaping our sector: total giving rose while the number of donors fell and retention declined again. This isn’t just a blip — it’s the continuation of a troubling pattern that accelerated in 2025, when donor numbers declined 1.3% year-over-year.
The concentration of philanthropic dollars among fewer donors creates both opportunities and challenges. While major gift officers might celebrate larger average gifts, the shrinking donor pool signals potential vulnerability. When your revenue depends on fewer relationships, each one becomes exponentially more critical.
What This Means for You:
- Review your donor file segmentation immediately — identify which segments are shrinking versus growing
- Calculate your organization’s dependency ratio: what percentage of revenue comes from your top 10% of donors?
- Consider implementing “donor acquisition sprints” in Q1 while budgets are fresh
The Monthly Giving Revolution Enters Its “Retention Era”
The subscription economy has trained donors to expect convenience, and nonprofits are finally catching up. We’ve entered what experts call the “retention era” for monthly giving programs. GivingTuesday data reveals that organizations applying subscription economy best practices see dramatically better retention rates.
Why It Matters: With donor retention rates slipping across the board, monthly giving offers a stabilizing force. But launching a program isn’t enough — the focus must shift to keeping those recurring donors engaged month after month.
Your Move:
- Audit Your Experience: Sign up for your own monthly giving program. How smooth is it?
- Steal from Subscriptions: What makes you keep Netflix but cancel others? Apply those principles
- Create “Insider” Benefits: Monthly donors should feel like members, not just ATMs
- Measure Differently: Track lifetime value, not just monthly revenue
.💡 Pure Charity’s Fundraisers & Sponsorship Features make it easy to receive and manage recurring donations to help retain donors.
Events Emerge as the Bright Spot
Despite the uncertainty, 77% of nonprofits hit their event goals in 2025. Events remain a top revenue driver even as other fundraising channels struggle. Why? Events create connection in an increasingly disconnected world. They transform transactions into experiences.
The organizations succeeding with events aren’t just throwing galas — they’re creating multi-touchpoint engagement opportunities. Think beyond the ballroom: virtual components, satellite events, and year-round engagement strategies that use the “big event” as an anchor, not the entire ship.
What This Means for You:
- Evaluate your 2025 events data: which had the highest ROI when you factor in staff time?
- Consider launching a signature “mini-event” series to maintain donor engagement between major gatherings
- Test hybrid formats that expand reach without sacrificing intimacy
.💡 Pure Charity’s Fundraisers & Sponsorship Features make it receive donations at live events.
Why Donors Give?
Trust & Transparency
73% of donors say knowing how funds are used is critical to their giving decision. Are you showing them?
Trust isn’t given—it’s earned through radical transparency. Today’s donors don’t just want to know you’re doing good work; they want to see exactly how their dollars create impact.
The psychology is straightforward: uncertainty breeds hesitation, while clarity builds confidence. When donors can trace their gift from donation to outcome, they give with conviction. When they can’t, doubt creeps in.
Research shows organizations demonstrating clear financial transparency see 53% higher donor retention. That’s not a minor improvement—it’s the difference between a one-time gift and a lifelong supporter.
Try This:
- Share specific breakdowns: “$50 provides 200 meals” rather than “your gift helps feed the hungry”
- Publish impact reports showing exactly where funds went
- Be transparent about overhead—donors respect honesty more than artificially low percentages
The organizations winning donor trust aren’t the ones with the glossiest marketing. They’re the ones opening the books.
What Changed from Last Week?
Tax Law Shifts Create New Giving Landscape
The calendar turned, and with it came new tax laws affecting charitable deductions that took effect January 1, 2026. The most significant change? New incentives for taxpayers who don’t itemize deductions. Beginning with the 2026 tax year, individuals who claim the standard deduction will have new charitable giving opportunities.
This fundamentally alters the giving landscape. Previously, only itemizers (typically higher-income donors) received tax benefits for charitable gifts. Now, the estimated 90% of taxpayers who take the standard deduction have skin in the game.
Why It Matters: This democratization of tax benefits could reverse the donor decline trend — if nonprofits act quickly. Middle-income donors who previously saw no tax advantage to giving now have incentive. But they need education about these benefits, and they need it now while tax planning is top of mind.
Your Move:
- Immediate: Update all donation pages and receipts with “2026 Tax Benefits” messaging
- This Month: Create a simple one-pager explaining the new benefits for standard deduction filers
- Q1 Priority: Launch a “New Year, New Tax Benefits” campaign targeting mid-level donors
- Long Game: Adjust your donor pyramid strategy — the middle may expand significantly
Bottom Line
This week’s takeaway:
The nonprofit sector faces a fundamental shift — fewer donors giving more, federal funding disappearing, and new tax laws reshaping incentives.
Organizations that adapt quickly to these realities will thrive. Those waiting for “normal” to return will struggle.
Three actions for this week:
- Calculate your vulnerability score: What percentage of donors provide 80% of revenue? What percentage comes from government? These numbers determine your 2026 strategy.
- Launch tax benefit messaging: Every donor communication should mention the new charitable deduction benefits for non-itemizers.
- Pick your retention battle: Choose one segment (monthly donors, major donors, or event attendees) and implement one new retention strategy this week.
💡 Pure Charity can support your 2026 Fundraising Strategies. Reach out and we can discuss.
Good In Action
Sometimes the best innovations come from unexpected places. The Washington Spectator boosted donations by 50% in 2025 through an integrated end-of-year campaign that proved even traditional media organizations can master modern fundraising.
Their secret? They stopped thinking like a media company asking for support and started thinking like a cause that happens to create media. The fully integrated campaign touched every channel – email, social, direct mail, and their website – with consistent messaging about impact, not just sustainability.
But here’s what made it brilliant: they created urgency without crisis. Instead of “we’ll shut down without your help,” they showed what the next year could achieve with donor support. They painted a picture of possibility, not just survival.
The Lesson: Donors give to vision casters. The Spectator’s 50% increase didn’t come from desperation – it came from demonstration.
They showed exactly what donor support would accomplish in concrete, exciting terms.
Your donors want to be part of something growing, not just something surviving.
Show them that future, and they’ll help you build it.
💡 Have a Good In Action story that you would like to share? Respond to this email and share the details.