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2026 ECONOMIC OUTLOOK - CONTINUED
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WHAT THE 2026 ECONOMY RISING DEMAND FOR SERVICES WORKFORCE AND TALENT CONSIDERATIONS LOOKING AHEAD
MEANS FOR NONPROFITS Economic moderation often leads to increased demand for nonprofit A slightly softer labor market may ease some hiring challenges, but The economic environment in 2026 is expected to be stable but cautious,
services, particularly in areas such as food insecurity, housing assistance, competition for skilled talent remains strong. Nonprofits may need to marked by innovation-led growth alongside ongoing financial and policy
FUNDING AND PHILANTHROPY healthcare access, and workforce development. As household budgets continue investing in employee engagement, flexibility, communication, challenges. For nonprofits, success will depend on the ability to remain
We are expecting continued growth in donations in 2026. Growth is tighten, more individuals and families turn to nonprofit organizations for leadership, and professional development to retain staff. agile, communicate impact clearly, and align resources with evolving
expected to be driven by factors such as the strong stock market (which support, stretching resources further. STRATEGIC PLANNING AND RESILIENCE community needs. Organizations that plan strategically and invest in
impacts foundation assets), the transfer of generational wealth, and new OPERATING COSTS AND FINANCIAL MANAGEMENT resilience will be well positioned to continue advancing their missions in
tax incentives brought about by the “One Big Beautiful Bill” (increased The 2026 economy underscores the importance of long-term planning a changing economic landscape.
number of itemizers and tax deductions for contributions made by non- Even as inflation cools, nonprofits continue to face rising costs related to and financial resilience. Nonprofits need to increasingly focus on
itemizers). The wealthy, with higher levels of discretionary income, will staffing/benefits, program delivery, technology, and facilities. In addition, building operating reserves, diversifying revenue streams, strengthening
continue to drive charitable giving, with foundation giving expected to nonprofits can anticipate declines in government funding, especially in partnerships, and leveraging technology to improve efficiency.
increase by 5 to 7% during 2026. environmental, social services, health, job training, disaster relief, arts,
and those covering marginalized communities and immigration related KEN CERINI, CPA, CFP, FABFA
issues. Managing these pressures will require careful budgeting, scenario MANAGING PARTNER
planning, and, in some cases, rethinking program models to ensure CERINI & ASSOCIATES, LLP
sustainability.
