State of Good for Feb 9, 2026
Weekly insights on donor behavior, industry trends, and what’s shaping generosity
⏱️ 4 minutes | Once a week
Donors & Industry Indicators
The Concentration Effect: Fewer Donors, Larger Gifts Shape 2026’s Fundraising Landscape
The fundraising equation continues its fundamental shift. New data shows just a 3% increase in donors making larger gifts, according to the Fundraising Effectiveness Project. This concentration of giving creates both opportunities and strategic considerations for fundraisers navigating an increasingly complex donor landscape.
Consumer sentiment climbed to 52.9 this week (up 3.7%), while personal savings rates dropped to 3.5% (down 5.4%). This divergence suggests donors feel slightly more optimistic but have less cushion for giving, a dynamic that typically favors established organizations with strong donor relationships over those seeking new supporters.
What This Means for You:
- Major gift programs become even more critical to revenue stability
- Mid-level donor programs need enhanced focus to build your pipeline
- Acquisition costs may rise as the donor pool concentrates
💡 Pure Charity’s Fundraisers Features support recurring donor programs that support deeper donor cultivation & giving.
AI’s Double-Edged Sword: Efficiency Gains Meet Engagement Losses
Two groundbreaking studies reveal AI’s complex impact on fundraising. M+R’s analysis shows end-of-year 2025 web giving trends declined significantly, with AI search disrupting traditional online donation patterns. Meanwhile, new research indicates donors increasingly question the authenticity of AI-generated nonprofit communications.
This technological disruption arrives as unemployment hits 4.4% (down 2.2%) and the Federal Funds Rate settles at 3.64% (down 2.2%). Lower rates typically boost charitable giving, but AI’s impact on donor engagement may offset these positive economic signals.
What This Means for You:
- Audit your AI tools for their impact on authentic donor connections
- Consider hybrid approaches that blend AI efficiency with human touch
- Test response rates between AI-generated and human-crafted appeals
Foundation Funding Falls Short as Workforce Instability Grows
Despite the 5% minimum payout requirement, nonprofits report foundation funding didn’t meet expectations in 2025. This shortfall coincides with what the Chronicle of Philanthropy calls “a year of funding whiplash” that reshaped the nonprofit workforce through collapsed hiring plans and surging layoffs.
The S&P 500’s slight dip to 6932.30 (down 0.1%) reflects broader market uncertainty, while inflation remains modest with CPI at 326.03 (up 0.3%). This combination suggests foundations may continue conservative grantmaking despite relatively stable economic indicators.
What This Means for You:
- Diversify funding sources beyond traditional foundation grants
- Build cash reserves to weather funding volatility
- Invest in retention strategies for key fundraising staff amid sector instability
Why Donors Give?
Loss Aversion
Research shows losing $100 feels twice as painful as gaining $100 feels good. How can fundraisers ethically apply this?
Loss aversion is one of the most robust findings in behavioral economics: we feel the pain of loss roughly twice as intensely as the pleasure of equivalent gain. This asymmetry profoundly affects decision-making including charitable giving.
In fundraising, this means framing matters enormously. “Don’t let children lose their after-school program” can be significantly more motivating than “Help children gain after-school support.” Same program, same outcome, different psychological frame.
But a word of caution: this is powerful psychology that must be used ethically. The goal is helping donors understand real stakes, not manufacturing fear. Loss framing should illuminate genuine consequences of inaction, not manipulate through anxiety.
Try This:
- Frame appeals around preventing loss when stakes are genuine
- Show what’s at risk if donors don’t act
- Never manufacture false urgency, use loss framing only for real stakes
The ethical application of loss aversion isn’t about manipulation. It’s about helping donors feel the true weight of their decision.
Research Citation: Kahneman & Tversky, “Prospect Theory: An Analysis of Decision under Risk”
What's Changing?
Donor Fatigue Reaches Critical Mass
Brand Federation’s new “Voices for Good” index reveals donor fatigue has become a primary force shaping giving patterns. This isn’t just survey data—it’s showing up in actual giving behavior across sectors.
Why It Matters: Donor fatigue affects retention rates, average gift size, and response rates to appeals. When combined with the concentration of giving among fewer donors, this creates a perfect storm for organizations dependent on broad-based support.
Your Move:
- Reduce appeal frequency while increasing personalization
- Create “giving breaks” in your calendar for loyal donors
- Develop content strategies that engage without always asking
- Test stewardship-only touchpoints between solicitations
💡 Pure Charity’s Fundraisers Features make it easy to create & manage recurring donation campaigns to help reduce donor fatigue.
Labor Department Overtime Rules Add Pressure to Budgets
The Department of Labor’s final overtime rule, announced with an April 23, 2024 effective date, will significantly increase staffing costs for many nonprofits. This regulatory change arrives as organizations already face workforce instability from funding disruptions.
Why It Matters: Higher operational costs mean higher fundraising targets. Organizations must raise more just to maintain current service levels, creating additional pressure on development teams already managing donor fatigue and giving concentration.
Your Move:
- Calculate the rule’s impact on your specific staffing costs
- Build increased operational costs into 2026 fundraising goals
- Consider restructuring roles to optimize under new thresholds
- Communicate transparently with donors about rising operational needs
Bottom Line
This week’s takeaway:
The fundraising landscape demands both efficiency and authenticity. As giving concentrates among fewer donors, AI tools promise scale but risk engagement, and workforce pressures mount from both funding instability and regulatory changes.
Three actions for this week:
- Analyze your donor file for concentration risk, what percentage of revenue comes from your top 10% of donors?
- Audit one AI-powered fundraising tool for its impact on donor engagement metrics
- Calculate your organization’s exposure to new overtime rules and adjust fundraising targets accordingly
💡 Pure Charity can support your 2026 Fundraising Strategies. Reach out, and we can discuss.
Good In Action
When 45 arts organizations faced declining support, they didn’t compete harder—they collaborated smarter. An innovative arts collaborative grew collective giving from $3.8 million in 2021 to $9 million in their 2025 campaign, bucking every negative trend in the sector.
The organizations maintained their individual identities while pooling resources for donor cultivation, shared events, and coordinated campaigns. By presenting a unified case for arts support in their community, they transformed donor perception from “choosing between organizations” to “investing in a cultural ecosystem.”
The Lesson:
In an era of giving concentration and donor fatigue, collaboration isn’t just nice, it’s necessary. Whether through formal partnerships, shared campaigns, or coordinated donor strategies, the path forward may require setting aside competition for collective impact.
What collaborative opportunities exist in your community that could transform giving from zero-sum to abundance?
💡 Have a Good In Action story that you would like to share? Respond to this email and share the details.