Philanthropy in 2026: Five Shifts Redefining How People Give

Philanthropy is constantly evolving. New challenges, policy shifts, and better tools are reshaping how people approach giving, from the rise of donor-advised funds to the growing influence of philanthropic advisors. Based on what we’re seeing across the sector, here are five trends we expect to define philanthropy in 2026.

1. Donors Are Prioritizing Impact

Donors increasingly prefer to support causes that are close to home or that they feel personally connected to. Recent research found that a large share of donors are more motivated to give when they see the impact in their own communities and local areas (NonProfit PRO).

This shift toward local giving means nonprofits that clearly show how dollars help real people nearby are more likely to engage supporters. Donors want to see the results of their gifts, and local stories often make outcomes easier to understand.

2. More People Can Benefit From Tax-Savvy Giving

In 2026, changes in tax rules may make it easier for more people to get a tax benefit from charitable gifts, even if they don’t itemize deductions (here’s our review of OBBA’s impact on giving). That means giving can become part of household financial planning for a broader group of donors.

As tax incentives reach more people, we expect more donors to think about giving ahead of time instead of making spur-of-the-moment gifts. Advisors and nonprofits will need to help people make those plans in ways that fit their values and goals.

3. Fewer Donors Are Funding More

Fewer people overall are giving large amounts, but those who remain active tend to give more strategically and at higher levels. Recent studies show that participation, especially among wealthier donors, has declined, but the dollars given by the most committed are a growing share of total giving (Chronicle of Philanthropy). That makes strong relationships, thoughtful stewardship, and measurable progress more important than ever.

4. Structured Giving Tools Are Becoming Normal

Tools like donor-advised funds are no longer just for the wealthy or the highly organized. They’re becoming a standard part of how everyday people give. These vehicles make it easier to separate the decision of when to give from the question of where to give, and are more popular than ever.

As people use these tools more often, they will also look for better reporting and transparency. Donors want to know that their dollars are doing what they intended — not just that they were given.

5. Donors Want Clear Results

Across age groups, people are more thoughtful about giving. They’re asking where their money goes, what it achieves, and how impact is measured. Donor retention rates show that supporters stop giving when they can't see how their money makes a difference or feel their gift is meaningless.

Nonprofits that can break down impact into plain language — how many people were served, what changed, and why it matters — stand out. Simple, honest reporting builds trust and encourages repeat support; in any conversation with supporters, focusing on impact and achievements matters most.

Looking Ahead

Philanthropy in 2026 will be more intentional and more measurable. Donors are rethinking where their gifts go and how they work with advisors and the organizations they support.

As donors and families refine their strategies, advisors and nonprofit leaders can reinforce thoughtful planning, clearer reporting, and stronger partnerships that make generosity more effective and better aligned with the causes and communities that matter most. Daffodil connects donors, advisors, and nonprofits to support more intentional and impactful philanthropy, and we look forward to advancing that work in the year ahead

Learn how Daffodil make giving more intentional, transparent, and connected to real impact.