A 2026 survey of 500 nonprofit executives by Momentive Software reveals a paradox in the nonprofit sector: while 83% reported revenue growth in the past year, 89% say earning donor trust is more difficult today than it was three years ago. According to the study, titled Rebuilding the Trust Economy: The 2026 Nonprofit Trends Report, the sector faces serious challenges that could undermine its progress. The survey highlights that although revenue is increasing, issues in donor trust, technology, and AI adoption threaten the long-term sustainability of this growth.
Building trust is the top priority, but operational issues weaken it
For 2026, building donor and stakeholder trust is the highest priority for nonprofit leaders, surpassing technology upgrades, AI adoption, and donor acquisition. Yet, despite this focus, 36% of organizations experienced cash flow issues in the past two years, and 33% lost a major donor or funding relationship. Nearly a third also dealt with increased scrutiny and compliance requirements from auditors, funders, or regulators. As for actions to rebuild trust, 45% of nonprofits choose to be transparent about how funds are used, while 51% rely on impact reports and outcome data to demonstrate their value.
Trust is being eroded through operational failures, such as cash flow problems that cause delays in program delivery, compliance issues that disrupt operations, and unexplained donor relationships. The report shows that without addressing these challenges, the trust gap will continue to widen, affecting donor confidence and financial stability.
AI adoption is widespread, but board support shapes its impact
Ninety-one percent of nonprofits are already using AI in some form, but only 29% use it extensively. The key difference in AI success is board support. At organizations where boards strongly back AI, 59% use it widely, and 92% report revenue growth over the past year. In contrast, at organizations where board support is restricted — the case for 57% of all nonprofit boards — just 14% use AI extensively, and revenue growth drops to 81%.
The most common AI applications are in communications, such as drafting emails, newsletters, and social media content. Thirty-six percent of those using AI rely on it to collect and analyze donor data, while 20% use it to predict donor behavior. Only 42% of organizations adopt AI agents where board support is unrestricted, compared to 28% in organizations with restricted board backing. These findings highlight that without strong board advocacy, even the most advanced AI tools struggle to deliver significant returns.
Operational weaknesses limit future potential
As revenue grows, the nonprofit sector struggles with outdated and disconnected systems that hinder long-term sustainability. Sixty percent of nonprofits rely on a single full-time staff member to manage all financial operations, including government grants, foundation funding, peer-to-peer campaigns, and individual and corporate donations. This over-reliance on one individual increases the risk as organizations expand into more complex and diverse funding streams.
Many leaders report frustration with repetitive administrative tasks and manual data entry across platforms. Forty-one percent struggle to access real-time data and reports, and 42% find it difficult to track multiple revenue sources. Additionally, 35% of organizations say they lack advanced analytics, and 34% lack real-time financial visibility. Without integrated technology solutions, operational efficiency and data-driven decision-making remain out of reach for many.
The report recommends that organizations treat donor trust as a core operational goal, invest in fully integrated technology platforms, and ensure board support for AI adoption. Ravi Venkatesan, CEO of Momentive Software, said the findings show a critical need for modern, cohesive systems. "Nonprofits are taking on more complexity, but the tools they use were never designed for the challenges they face today," he explained. He emphasized that only organizations that embrace these changes will succeed in maintaining their growth and financial health.
Overall, the report paints a picture of a sector that is both dynamic and fragile. While revenue is increasing and AI is becoming more common, these advancements are not translating into long-term stability due to a lack of trust-building strategies, weak operational infrastructure, and inconsistent board support. The 2026 Nonprofit Trends Report is a wake-up call for leaders to re-evaluate their approach to donor engagement, technology adoption, and financial management.
The study was conducted by Wakefield Research and released by Momentive Software. It is based on a survey of 500 nonprofit executives across the United States. The report is available for download through Momentive Software.