State of Good for May 4, 2026
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 9 minutes | Once a week
This Week's State of Good
The fundraising landscape is shifting beneath our feet. At last week’s Association of Fundraising Professionals conference, the conversations weren’t about new techniques or emerging channels, they were about survival strategies. Between inflation squeezing operations, federal funding changes, and evolving tax regulations, development professionals are navigating what many called the most complex environment in recent memory.
But here’s what’s fascinating: while leaders gathered to discuss these headwinds, the data tells a different story about donor behavior. New research shows recurring donor bases have grown 31% since 2023, suggesting that despite economic pressures, donors are actually deepening their commitments when properly engaged.
The New Economic Reality
The AFP Icon conference put numbers to what many of us have been feeling. Inflation, federal funding cuts, and tax changes dominated the agenda, with sessions packed as fundraisers sought strategies for this challenging environment. The message was clear: the old playbooks need updating.
The conference emphasized a critical shift, organizations must expand beyond their traditional donor pools. This isn’t just good practice anymore; it’s survival. When federal funding becomes less predictable and inflation eats into both operational budgets and donor capacity, diversification becomes essential.
Meanwhile, a new qualitative study reinforces what conference attendees were discussing. When researchers interviewed nonprofit leaders about their top struggles, 22.1% identified fundraising as their primary challenge. The study found that funding scarcity underlies many operational challenges, validating that these aren’t isolated concerns but sector-wide realities.
What This Means for You:
- Audit your donor concentration now. If more than 30% of funding comes from any single source, create a diversification plan
- Build inflation assumptions into your asks, a $1,000 gift today has less impact than it did three years ago
- Develop talking points that acknowledge economic realities while emphasizing your mission’s continued importance
- Consider revisiting major donor asks if they haven’t increased since 2021
The Recurring Revenue Revolution
While economic challenges dominate the headlines, something remarkable is happening with donor behavior. New data reveals recurring donor bases grew 31% since 2023, offering a blueprint for stability in uncertain times.
This growth isn’t accidental. The research provides specific insights into what drives this expansion, examining donor behavior patterns and motivations related to recurring giving programs. For organizations struggling with funding unpredictability, this data offers a path forward, monthly donors provide the steady revenue stream that can help weather economic storms.
What This Means for You:
- If you don’t have a recurring giving program, make it a Q3 priority
- Benchmark your recurring donor growth against the 31% sector increase
- Focus retention efforts on converting one-time donors to monthly supporters
- Calculate and share your monthly giving program’s ROI to secure internal buy-in
Compliance Changes on the Horizon
Add one more item to your strategic planning list: the IRS is formally beginning a rework of Form 990. The Department of Treasury announced this long-rumored revision aims to improve transparency and strengthen tax administration for tax-exempt organizations.
While details are still emerging, the implications are clear, nonprofits will need to adapt their reporting procedures and potentially update record-keeping systems. This isn’t just a compliance issue; it’s a strategic consideration. Enhanced transparency requirements could affect everything from donor communications to board governance.
What This Means for You:
- Start reviewing your current 990 preparation process for potential gaps
- Budget for possible system updates or consultant support in 2027
- Brief your board on upcoming changes to manage expectations
- Consider how enhanced transparency might actually benefit donor relations
Why Donors Give?
Ever wonder why some supporters upgrade to monthly giving while others remain sporadic? New research surveying 2,006 donors provides fascinating insights, with 718 recurring donors revealing what inspired their ongoing commitments.
The research uncovers specific motivations that drive donors to make that crucial shift from one-time to recurring support. While the full findings offer numerous insights, the core discovery is that recurring donors aren’t just motivated by different factors, they think about their giving in fundamentally different ways. They see themselves as partners in the mission rather than occasional supporters.
This partnership mindset changes everything about how they engage. Recurring donors want regular updates on impact, prefer insider communications, and value efficiency in operations. They’re not just giving money; they’re joining your team.
Try This:
- Frame monthly giving as “joining” or “partnering” rather than just donating
- Create exclusive insider updates for recurring donors
- Highlight the efficiency gains of predictable revenue in your messaging
- Ask current monthly donors to share why they made the switch in testimonials
💡 Pure Charity’s Fundraisers features can be used to meet specific giving tool needs for family funds and giving circles.
Bottom Line
This week’s takeaway: Economic headwinds are real, but donor behavior is actually strengthening in key areas. The 31% growth in recurring donors since 2023 shows that when nonprofits adapt their strategies to current realities, supporters respond with deeper commitments. The challenge isn’t donor capacity; it’s organizational agility.
Three actions for this week:
- Diversify with intention — Map your funding sources and identify concentration risks. If any single source exceeds 30%, create a 90-day plan to expand your donor base.
- Launch or optimize recurring giving — With sector growth at 31%, monthly giving programs are proven winners. Audit your current program or fast-track launching one.
- Prepare for transparency — With Form 990 changes coming, use this as an opportunity to improve your financial storytelling and donor communication systems now.
💡 Pure Charity can support your 2026 Fundraising Strategies.