Nonprofits are adapting their programs and strengthening risk management as they respond to changing community needs and ongoing uncertainty. Nearly three-quarters (74%) expect to introduce new programs over the next year without eliminating existing ones, while 52% are increasing spending on risk management and compliance, according to BDO’s 2026 Nonprofit Standards Benchmarking Report.

Now in its tenth year, the report surveys 250 nonprofit leaders about financial health, organizational strategy, technology adoption, and risk. Respondents represent the higher education, grantmaking, health and human services, trade association, professional society, and public charity sectors.

“Nonprofit leaders are making critical decisions about how to sustain their missions, invest in their organizations, and meet growing needs amid continued economic pressures, a changing funding landscape, and an evolving policy landscape,” said Robby Vanrijkel, National Nonprofit & Education Practice Co-Leader at BDO USA. “No organization can anticipate every challenge ahead, but the strongest organizations remain focused on their mission, are proactive, and continue moving forward with purpose.”

Key findings from this year’s survey include:

  • Organizations strengthen operational support: 52% are increasing spending on risk management and compliance, up from 38% in 2025. Half are increasing investment in finance and accounting systems, up from 40%, as nonprofits direct resources toward the functions that support their work.

  • Program expansion leads growth plans: 74% expect to introduce new programs without eliminating existing ones over the next 12 months. Strategic partnerships with similar nonprofits remain a priority for 61%, while 40% consider a merger likely, down from 51% in last year’s survey.

  • Impact measurement struggles to keep pace: 59% say inadequate technology poses a challenge to gathering information on program impact. Half cite insufficient staff to collect impact data, and 49% identify the lack of a consistent measurement and reporting framework as a challenge.

  • AI adoption raises oversight questions: 70% have formally adopted AI in at least one area, including 27% that have integrated it across multiple areas. Yet 58% manage AI oversight within IT, which can leave gaps in how organizations address compliance and financial risks.

  • Financial footing strengthens: 90% of nonprofits expect growth over the next 12 months. The share holding seven to 12 months of operating reserves grew from 24% to 32%.

Alongside the sector overview, BDO has released a companion report examining the findings from higher education institutions.

Higher education balances growth with financial pressure

Colleges and universities continue to invest in technology and enrollment strategies as budget constraints weigh on their decisions. Although most report revenue growth, this percentage has declined from last year’s survey.

Key findings from the higher education snapshot include:

  • Revenue growth becomes less widespread: 82% reported growth in their most recent fiscal year, down from 92% in 2025. Economic uncertainty (40%) and budget constraints (38%) are the top cited organizational challenges.

  • Technology remains a spending priority: 72% plan to increase technology spending, and 70% have formally adopted AI in at least one area of their institution. Improving operational efficiency is the leading goal for technology investment (32%).

  • Enrollment and giving go digital: 44% are expanding online and remote learning to encourage enrollment, and 52% are expanding digital and mobile giving platforms to reach new generations of donors.

Read the 2026 Nonprofit Standards Benchmarking Report and the higher education snapshot reports here. BDO will release four additional snapshot reports in November, showcasing responses from public charities, health and human services organizations, grantmakers, and associations.

About the Survey

The 2026 Nonprofit Standards Benchmarking Survey was fielded in May and June 2026 by Rabin Roberts Research. It surveyed 250 nonprofit leaders of health and human services organizations, public charities, colleges and universities, grantmakers, trade associations, and professional societies.

About BDO

At BDO, our purpose is to be the people you count on to grow with confidence and achieve what matters most. Our professionals provide assurance, tax and advisory services for a diverse range of clients across the U.S. and in over 160 countries through our global organization. We are proud to be an ESOP company, inspiring an ownership mindset that enables our collective success.

BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. For more information, please visit: www.bdo.com.

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