State of Good for March 9, 2026
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week
Donors & Industry Indicators
The Great Retention Crisis: When 8 Out of 10 Donors Don’t Come Back
The numbers are stark enough to make any development director lose sleep: donor retention has plummeted to just 18.1% in early 2025, according to new data on social welfare NGOs. That means more than four out of five donors who gave this year won’t give next year. Combined with a 3% drop in overall participation in 2025 reported by the Fundraising Effectiveness Project, we’re seeing a shift in how donors engage with nonprofits.
This isn’t a new trend, it’s an acceleration. Household giving has fallen from 66.2% in 2000 to 49.6% in 2018, representing a 17-percentage-point decline over two decades. The economic indicators this week add context: while consumer sentiment rose 6.6%, personal savings dropped to 3.6% and unemployment ticked up to 4.4%. Your donors are feeling cautiously optimistic but financially stretched.
What This Means for You:
- Budget assuming 82% of this year’s donors won’t return next year
- Calculate your true donor acquisition costs with this retention rate in mind
- Shift resources from acquisition to retention—it’s now your highest ROI activity
💡 Pure Charity’s Features support recurring donor programs that support deeper donor cultivation, giving, and retention.
Peer-to-Peer’s Promise and Its Achilles’ Heel
While traditional fundraising struggles, peer-to-peer programs show resilience. America’s Top 30 peer-to-peer fundraising programs achieved their fourth consecutive year of post-pandemic growth in 2025. But here’s the catch: only 0.4% of donors who come through peer-to-peer fundraisers choose to make their gift recurring, according to a new study on P2P second asks.
Think about that opportunity cost. P2P brings in new donors at scale, but we’re failing to convert them into sustainable supporters. With traditional channels declining and P2P growing, this conversion gap represents millions in unrealized recurring revenue.
What This Means for You:
- Audit your P2P campaigns for recurring ask opportunities
- Test dedicated conversion campaigns 30-60 days post-event
- Consider automatic recurring options at the point of P2P donation
The Capacity Crunch: Skilled But Stuck
The 2026 Nonprofit Communications Trends Report reveals a critical disconnect: communications teams have the skills but lack the resources and decision-making involvement to succeed. Teams report feeling “stretched, reactive, or like you’re constantly trying to ‘just make it work'” despite not being involved in strategic decisions from the beginning.
This matters for fundraising because donor communications drive retention. When your communications team is excluded from early planning and under-resourced, donor relationships suffer. The report emphasizes that struggles stem from structural issues, not capability gaps.
What This Means for You:
- Include communications staff in fundraising strategy sessions from day one
- Resource communications based on retention goals, not just output metrics
- Recognize that better donor communications require investment, not just effort
Why Donors Give?
Community & Belonging
Donors who feel part of a community have 3x higher lifetime value. Are you building community or just collecting donations?
Humans are tribal by nature. We’re wired to seek belonging, to be part of something larger than ourselves. When donors feel genuine membership in a community united by shared values, giving transforms from transaction to expression.
This is why peer-to-peer fundraising is so powerful. People give to people. They give to be part of movements. They give because their tribe is giving.
The psychology of belonging also transforms retention. Leaving isn’t just canceling a recurring gift—it’s leaving a tribe. That’s a much higher psychological bar.
Try This:
- Create spaces for donors to connect with each other, not just with you
- Use inclusive language: “our community” and “together we”
- Recognize donors publicly when appropriate—belonging requires visibility
- Launch a donor Facebook group or monthly virtual meetup
The question isn’t whether you have donors. It’s whether they feel they belong.
What's Changing?
Federal Funding Shifts Create New Urgency
After more than 60 years, the Combined Federal Campaign appears to be shutting down. This federal workplace giving program has been a reliable funding source for thousands of nonprofits. Its closure signals both immediate funding gaps and broader shifts in workplace giving.
Meanwhile, the Center for Effective Philanthropy reports that nonprofits face increased service demands amid decreased funding. Federal funding cuts are already hitting the ground—Silicon Valley Community Foundation deployed $590,000 in emergency grants as local leaders warn about cuts to food, housing, and healthcare programs.
Why It Matters: The federal funding landscape is shifting rapidly. Organizations historically dependent on government funding or workplace giving programs need immediate contingency plans. The combination of increased service demands and decreased funding creates a strategic inflection point.
Your Move:
- If you receive CFC funding, model the revenue loss immediately
- Develop three scenarios: 10%, 25%, and 50% federal funding reduction
- Launch an emergency individual giving campaign to current donors
- Consider merger or partnership opportunities, 86% of nonprofits in BDO’s survey are considering growth through acquisition
💡 Pure Charity’s Fundraisers Features make it easy to create & manage recurring donation campaigns to help reduce donor fatigue.
Tax Changes Reshape Major Giving
New charitable tax rules for 2026 are coming, with changes to qualified charitable distributions (QCDs) from IRAs and new limitations on donor advised funds. These technical changes will influence how and when major donors give.
Why It Matters: Tax policy drives major gift timing and structure. Donors need proactive guidance to optimize their giving under new rules. Organizations that provide clear, timely tax information will capture more major gifts.
Your Move:
- Schedule tax update webinars for your major donors by April
- Partner with local estate planning attorneys for educational events
- Create simple one-pagers explaining QCD changes
- Train gift officers on new donor advised fund limitations
Bottom Line
This week’s takeaway:
The nonprofit sector faces a perfect storm of declining retention, shifting federal support, and changing donor behaviors. But within these challenges lie opportunities for organizations willing to adapt quickly. The winners will be those who prioritize retention over acquisition, build genuine donor communities, and diversify revenue proactively.
Three actions for this week:
- Calculate your true donor retention rate and acquisition costs—the math will change your priorities
- Launch one recurring giving conversion campaign to past P2P participants
- Schedule a federal funding contingency planning session—model multiple scenarios
💡 Pure Charity can support your 2026 Fundraising Strategies. Reach out, and we can discuss.
Good In Action
Sometimes in the midst of sector-wide challenges, we need reminders of what’s possible.
This week, UMass Amherst hit its $600 million campaign goal—the largest fundraising campaign in the university’s 162-year history.
What made the difference? They didn’t just ask for money. They connected giving to “creative endeavors” and “impact on the common good.” They made donors feel part of something historic, not just financial. In an era of declining participation, they achieved record-breaking support by making the campaign about shared purpose, not institutional need.
The Lesson: Even in challenging times, donors will give generously to visions that inspire them. The question isn’t whether money is available, it’s whether your story is worth investing in. UMass Amherst proved that when you connect giving to impact and legacy, donors respond. Your next campaign should do the same.
💡 Have a Good In Action story that you would like to share? Respond to this email and share the details.