State of Good for Jan 26, 2026
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week
Donors & Industry Indicators
One in Four Americans Plan to Cut Giving in 2026. Here’s Your Response.
The numbers are in, and they’re sobering: 25% of Americans plan to reduce their charitable giving in 2026, according to a new survey. This early warning signal arrives as nonprofits are already navigating declining donor participation rates, down 4.5% year-over-year according to recent fundraising efficiency data.
Yet there’s a silver lining hidden in these statistics. While donors plan to give less, they remain engaged throughout the year. This presents an opportunity for organizations that can adapt their strategies to meet donors where they are, not where we wish they were.
What This Means for You:
- Shift from volume-based to value-based donor relationships. If you’re getting fewer gifts, make each interaction count
- Build flexible giving options that accommodate smaller budgets while maintaining engagement
- Start conversations with major donors now about their 2026 plans. Don’t wait for Q4
Micro-Donor Participation Drops 11.1% as Economic Pressures Mount.
The foundation of many nonprofit fundraising programs — micro-donors giving between $1-$100 — saw an 11.1% decline in Q1 2025, according to fundraising efficiency statistics. This decline hits particularly hard as consumer sentiment sits at just 52.9, despite recent improvements.
The economic indicators tell a mixed story. While unemployment dropped to 4.4% and the Federal Funds Rate decreased to 3.72%, personal savings rates fell to 3.5%. When families have less cushion in their budgets, charitable giving often takes the first hit.
What This Means for You:
- Recalibrate acquisition costs for micro-donors, the math may no longer work with traditional approaches
- Consider monthly giving programs that break larger asks into smaller, manageable amounts
- Focus retention efforts on your existing micro-donor base rather than aggressive acquisition
💡 Pure Charity’s Fundraisers & Sponsorship Features make it easy to manage donations and help acquire new donors.
Retention Rates Hold at 69.2%. But Pressure Is Building.
Here’s some genuinely good news: existing donor retention reached 69.2% according to recent data. This suggests that donors who stay engaged remain committed to their chosen causes. However, sector analysis shows that rising operational costs and policy uncertainty are creating unprecedented pressure on nonprofit sustainability.
By mid-2025, 7% of nonprofits were already planning operational changes to address these challenges. The organizations that will thrive are those making strategic adjustments now, not waiting for crisis to force their hand.
What This Means for You:
- Double down on retention strategies — it’s more cost-effective than ever to keep current donors
- Audit your operational efficiency now to identify cost savings before they become mandatory cuts
- Communicate transparently with donors about how you’re adapting to serve your mission efficiently
Why Donors Give?
Why Donors Give: Generational Differences
Gen Z gives to 4.5 causes on average. Boomers give to 8.2. What does this tell us?
Different generations don’t just give different amounts—they give for fundamentally different reasons and through different channels.
Baby Boomers (born 1946-1964) give out of loyalty and obligation. They respond to direct mail, value institutional reputation, and maintain long-term relationships with organizations.
Gen X (1965-1980) values efficiency and wants proof. Show them impact data, minimize overhead, demonstrate effectiveness.
Millennials (1981-1996) give to causes aligned with personal values. They expect to engage beyond the checkbook—volunteering, advocating, sharing on social.
Gen Z (1997-2012) gives reactively to crisis and movements. They discover causes on social media and give in the moment, often in smaller amounts to more causes.
Try This:
- Segment communications by generation; one message doesn’t fit all
- Offer engagement pathways beyond giving for younger donors
- Don’t abandon direct mail for Boomers while building digital for Gen Z
The future of fundraising isn’t choosing one generation over another—it’s building systems that serve all of them.
What Changed from Last Week?
New Tax Benefits for Standard Deduction Filers Transform Mid-Level Giving
A tax law change that took effect this year now allows donors who take the standard deduction to receive tax benefits for charitable giving — up to $1,000 for individuals and $2,000 for couples filing jointly. This applies to roughly 90% of taxpayers, according to recent analysis.
Why It Matters: This change doesn’t create generosity, but it does reinforce it. Your consistent $50-per-month donor just received a meaningful affirmation that their giving matters. For many mid-level donors, this represents their first tax benefit for charitable giving since the 2017 tax law changes.
Your Move:
- Update donor communications immediately to share this benefit — keep it light and lead with impact
- Target messaging to donors giving between $500-$2,000 annually who may not realize they now qualify
- Consider a special appeal to donors who reduced giving after losing deductions in 2017
Foundation Grant Requirements Shift in Response to Political Pressure
The Chronicle of Philanthropy reports that some grant makers are asking nonprofits to remove references to race from grant applications in response to Trump administration pressure.
This represents a significant shift in foundation giving practices that could affect how organizations frame their work.
Why It Matters: Grant application language that was standard practice last year may now disqualify your organization from funding. This isn’t about changing your mission, it’s about adapting your communication strategy to secure the resources you need to fulfill that mission.
Your Move:
- Review all active grant applications for language that may need revision
- Develop alternative ways to describe your beneficiary populations and impact
- Consult with program officers at your current funders about their evolving requirements
Bottom Line
This week’s takeaway: Donor caution is real, but so is donor commitment. The 25% planning to reduce giving still means 75% aren’t, and retention rates at 69.2% show that engaged donors remain loyal.
Success in 2026 requires adapting your approach without abandoning your mission.
Three actions for this week:
- Communicate the new tax benefits to your donor base, especially those giving $500-$2,000 annually
- Segment your donor outreach by generation, one message doesn’t fit Boomers and Gen Z
- Schedule conversations with your top 20 donors about their 2026 giving plans
💡 Pure Charity can support your 2026 Fundraising Strategies. Reach out, and we can discuss.
Good In Action
20,000 Lives Changed Through “Small Solutions” That Scale
The Enabling Lives Initiative has reached 20,000 persons with disabilities since 2014 by funding scalable innovations through nonprofit partners, according to recent impact data. What makes this program remarkable isn’t just the number — it’s the focus on “small solutions” that create exponential impact.
Rather than funding massive infrastructure projects, the initiative supports practical innovations that can be replicated across communities. One grant recipient developed a simple mobility app that helps people with visual impairments navigate public transit. Another created low-cost adaptive tools that enable individuals with limited hand mobility to use smartphones independently.
The Lesson: Impact doesn’t always require transformational gifts or groundbreaking technology.
Sometimes the most powerful solutions are the simplest ones, designed by people who deeply understand the challenges they’re solving.
When evaluating programs, ask yourself: could this small solution scale to serve thousands more? The best innovations often can.
💡 Have a Good In Action story that you would like to share? Respond to this email and share the details.