60% of nonprofit, government and education leaders say talent retention is their toughest challenge for 2026, Wipfli survey finds

2026 survey highlights sector differences in optimism, technology adoption and cybersecurity risks

MILWAUKEE, Nov. 18, 2025 /PRNewswire/ -- Wipfli, a leading advisory and accounting firm, has released new research illuminating how nonprofit, government and education leaders are managing today's most pressing challenges.

Across the country, nonprofit, government and education organizations are navigating a landscape marked by constrained funding, workforce shortages and rising technological demands. Yet, as revealed in Wipfli's latest survey of 299 executive-level leaders, responses to these pressures vary widely by sector.

Key findings include:

• Talent retention: Sixty percent of nonprofit, government and education leaders say attracting and retaining skilled people will be one of their toughest challenges in 2026. This widespread concern reflects ongoing competition for talent and the impact of sector instability on workforce planning.
• Technology costs: Sixty percent cited "cost" as their top technology infrastructure challenge. Budget constraints continue to limit organizations' ability to upgrade systems, invest in new tools and keep pace with digital transformation.
• AI adoption: Forty-five percent of nonprofits are applying artificial intelligence to automate tasks. While AI is gaining traction, many organizations remain in the early stages of implementation, highlighting a gap between aspiration and execution.
• Financial optimism: Fifty-five percent of government leaders rated their financial optimism 8 to 10, the highest of all sectors. Government organizations are more confident in their financial outlook, while nonprofits and education institutions report greater uncertainty about future stability.
• Cybersecurity incidents: Seventy-five percent of education organizations experienced three or more cybersecurity incidents last year. The prevalence of cyberattacks underscores the urgent need for stronger security measures and ongoing investment in technology safeguards.

Government respondents are the most optimistic about their organizations' financial stability, while education leaders expressed the least confidence in both current and future outlooks. Technology maturity varies sharply, with nonprofits often lagging their peers in government and education. Nearly three-quarters of education leaders reported multiple cyber incidents in the past year, underscoring the urgency of robust security strategies.

"When people aren't sure whether their organization will be able to sustain operations or programs, they start asking themselves if they'd be better off somewhere more stable," said Wipfli partner Brian Gaumont. "That uncertainty can push talented people out of the sector entirely."

"Cost is often the barrier people name first," Gaumont said. "But what we see underneath are integration hurdles: outdated systems that don't talk to each other, limited IT bandwidth, and teams stretched thin just to maintain what they have."

Integration gaps have real consequences, including increased vulnerability to cyberattacks. Nearly half of nonprofit and government respondents and three-quarters of education respondents said their organizations experienced multiple cyber incidents within the past year.

Despite these challenges, the survey reveals an appetite for innovation and a determination to build resilience. Leaders are exploring new strategies for talent management, financial stability and technology integration, even as they navigate persistent barriers.

Download the full report today to access exclusive data, expert insights and strategies to strengthen your organization's people, finances and technology readiness.

About Wipfli

Wipfli is a leading national advisory and accounting firm with nearly 100 years of serving ambitious middle-market organizations. We understand our clients' unique challenges and help them succeed on their terms through assurance, tax, advisory, outsourcing and technology services. With 3,000+ associates and global alliances, we combine national capabilities with local relationships. Wipfli operates under an alternative practice structure: Wipfli LLP, a licensed CPA firm, provides attest services, while Wipfli Advisory LLC, a non-CPA firm, delivers business advisory and non-attest services. Learn more at wipfli.com or contact Alicia O'Connell at [email protected].

SOURCE Wipfli