Strong Revenue, Fragile Foundations: Momentive Software Research Exposes What's Threatening Nonprofit Sector Growth

2026 survey of 500 nonprofit executives finds 83% grew revenue last year, 9 in 10 say donor trust is harder to earn, and 65% rely on a single person to manage all financial operations

ST. PETERSBURG, Fla., Aug. 6, 2026 /PRNewswire/ -- Momentive Software, the leading technology partner accelerating innovation and powering the future for mission-driven organizations, today released Rebuilding the Trust Economy: The 2026 Nonprofit Trends Report, a new study conducted by Wakefield Research examining the financial health, operational challenges, and technology priorities of nonprofit organizations across the United States.

The data reveals a fundamental tension. While 83% of executives reported revenue growth over the past 12 months, that growth is stretching the foundations beneath it and exposing gaps in donor trust, AI operationalization, and technology infrastructure that, if left unaddressed, threaten to undermine the sector's trajectory.

Key Findings from the 2026 Nonprofit Trends Report

1. Donor Trust is the Sector's Defining Priority and its Hardest Challenge
   
   Building donor and stakeholder trust ranks as the single most-cited organizational priority for the year ahead — above technology upgrades, AI adoption, and donor acquisition. Nearly nine in 10 leaders (89%) say it's harder to earn today than three years ago. The gap is not awareness; it is execution. Trust erodes through operational failures such as cash flow challenges that delay program delivery, compliance issues that disrupt operations, and donor relationships that end without clear explanation.
   
   
   • 36% of organizations experienced cash flow challenges or liquidity constraints in the past two years; 33% lost a major donor or funder relationship
   • 34% faced increased scrutiny or compliance requirements from auditors, funders, or regulators
   • 51% rely on impact reports and outcome data as part of their trust-building strategy, while 45% proactively communicate how funds are used
     
     
2. AI Usage is Near-Universal, but Board Support is Determining Who Benefits in Practice
   
   Ninety-one percent of nonprofits are already using AI in some official capacity. Yet 88% of leaders believe organizations that don't adapt to AI within the next two years will struggle to compete for donors. The most consequential finding is about what happens after adoption. At organizations where boards strongly support AI, 59% use it extensively and 92% saw revenue growth over the past 12 months. At organizations where boards support AI with restrictions, the position held by 57% of all nonprofit boards, just 14% use it extensively and revenue growth drops to 81%. Board support is the primary variable separating organizations that benefit from AI from those that do not.
   
   
   • Only 29% of nonprofits use AI extensively; most common uses for AI are communications tasks such as drafting emails, newsletters, and social media content
   • 36% of those using AI use it to collect and analyze donor data, and 20% are using it to predict donor behavior
   • 42% have adopted AI agents at organizations where boards strongly support AI, compared to 28% where boards support AI with restrictions
      
3. Revenue is Growing, yet the Operational Infrastructure to Sustain it Isn't
   
   Even as revenue climbs, most organizations are running increasingly complex operations through lean teams and disconnected systems. Sixty percent of nonprofits rely on a single full-time staff member to manage all financial management and accounting — a structural reality that grows more precarious as organizations diversify across government grants, foundation funding, peer-to-peer campaigns, and individual and corporate donations. Administrative burden is a constraint on the sector's ability to grow sustainably.
   
   
   • 48% cite repetitive administrative work as a top technology frustration, followed by manual data entry across multiple platforms (42%) and difficulty accessing real-time data and reports (41%)
   • 38% report challenges tracking multiple revenue streams
   • 35% cite a lack of advanced analytics capabilities and 34% report a lack of real-time financial visibility as current challenges
   • 49% of leaders say a top benefit of a fully integrated technology platform would be improved operational efficiency, followed by increased revenue and fundraising outcomes (45%) and better data-driven decision making (44%)

"This research puts hard numbers on what nonprofit leaders already know," said Ravi Venkatesan, CEO of Momentive Software. "Nonprofits are growing and taking on more complexity, but doing it with fragmented systems that were never designed for where they are headed today. The cost of that gap shows up in limited AI impact, an operational burden that falls on small, overstretched teams, and donor trust that's harder to earn each year. The organizations that sustain their growth will be the ones that treat technology infrastructure as a strategic investment, not an operational afterthought."

The Path Forward

The 2026 Nonprofit Trends Report identifies three priorities for nonprofit organization leaders:

• Treat donor trust as an operational commitment, not a communications strategy. Eighty-nine percent of nonprofit leaders agree that trust is harder to earn than it was three years ago, and the organizations closing that gap are building the internal systems that make transparency, real-time accountability, and consistent program delivery possible at every level of the organization.
• Bring boards into the AI conversation with outcome data. The research shows a clear connection between board support and more advanced uses if AI. Leaders should move beyond reporting that AI is being used and show boards the measurable difference it is making and what restricted adoption is costing.
• Build for the organization you are becoming. Growing revenue diversification, rising compliance requirements, and increasing donor expectations demand connected systems and integrated operations. Organizations running complex, multi-stream operations through a single staff member and disconnected platforms are carrying risk that compounds with every year of growth.

"What stands out in this data is the consistency of the pressure across mission categories, organization sizes, and revenue levels," said Tirrah Switzer, VP of Product Marketing at Momentive Software. "But the finding that surprised us most is how much board support, not budget or staff capacity, determines whether AI creates real impact. At organizations where boards strongly endorse AI, extensive use is four times higher and revenue growth follows. Ninety-one percent of nonprofits have already made the AI adoption decision. The outcome gap is about what happens after that."

Access the complete 2026 Nonprofit Trends Report today.

Commissioned by Momentive Software and conducted by Wakefield Research, the 2026 Nonprofit Trends Report gathered responses from 500 executives at U.S. nonprofit and educational organizations with minimum annual revenue of $500,000, across five mission categories: Arts, Culture & Humanities; Education; Human Services; Health/Healthcare; and Environment & Animals. The research was conducted May 1–14, 2026, via online survey. The margin of error is ±4.4 percentage points at the 95% confidence level.

About Momentive Software

Momentive Software amplifies the impact of more than 37,000 mission-driven organizations across 30+ countries, supporting over $13 billion raised and 287 million members served annually. Nonprofits and associations rely on Momentive's AI-powered software and services to engage their communities, simplify operations, and grow revenue. Designed to help organizations connect more, manage more, and expect more, Momentive's solutions span fundraising, learning, events, careers, volunteering, accounting, certification, and association management. Momentive partners with organizations that believe "good enough" is never enough—so they can bring on better outcomes for everyone they serve. Learn more at momentivesoftware.com.

SOURCE Momentive Software